cost Accounting 1 Syllabus

RAFIC HARIRI UNIVERSITY (RHU)
College of Business Administration (CBA)

Course Syllabus
BFIN 340: Cost Accounting I

COURSE INFORMATION
Course Code & Title: BFIN 340: Cost Accounting I

Credits: 3 credits
Prerequisite: BFIN 231
Classroom: H204
Schedule: TTh: 8:00 – 9:15
Term: Fall 2014

INSTRUCTOR INFORMATION
Instructor: Rima Hakim
Office: Bldg G, Room 101-H
Office Hours: TTh 9:30 – 11:30, Else by appointment
Instructor’s Email: [e-mail]

Textbook & Material: Cost Accounting. 15th edition, Horngren, Datar and Raja, Pearson (Main textbook, required)

Managerial Accounting. 14th edition, Garrison, Noree & Brewer, McGraw Hill (support material)

COURSE GRADING, EXAMS AND GRADE DESIGNATION

Grade Distribution
Attendance & Participation 5%
1st Exam 30%
2nd Exam 30%
Final Exam (Comprehensive) 35%

Examination Dates
Exam I October 9, 2014 75 minutes
Exam II November 6, 2014 75 minutes
Final Exam December 16, 2014 120 minutes

Grade Designation
Percentage
Letter Grade
Designation
95 - 100
A +
Distinguished
90 – 94
A
Excellent
86 - 89
B +
Very Good
80 - 85
B
Good
77 - 79
C +
Fair
73 - 76
C
Average
70 - 72
C -
Satisfactory
64 - 69
D +
Minimal Pass
60 - 64
D
Weak
0 - 59
F
Fail

COURSE DESCRIPTION This course introduces students to the basic concepts, analyses, uses and procedures of management accounting. This course would enable students to understand and view the element of cost as part of activities planned and implemented by a company. It covers cost categories, cost behavior, cost-volume-profit analysis, master and flexible budgets, direct costs and manufacturing overhead variances and inventory cost systems.

COURSE OBJECTIVE The objective behind this course is to introduce students to different types and categories of costs, and to increase their abilities as to the understanding of the relationships between profit, volume, and costs of output. This course would enable students to understand and view the element of cost as part of activities planned and implemented by a company. The importance of studying and analyzing the difference between actual figures and budgeted figures, the variances produced from static and flexible budgets, the difference between variable and fixed overhead variances are also covered in this course.

COURSE OUTCOMES
Upon successful completion of this course students will learn:
1- The difference between financial accounting and cost accounting
2- The objectives of cost accounting
3- The difference between variable costs, fixed costs, and mixed costs
4- The difference between direct costs and indirect costs
5- The difference between period costs and product cots
6- The relationship between cost, profit, and volume of output
7- The breakeven point analysis
8- The difference between contribution margin and gross margin
9- The difference between job costing and process costing
10- The general approach to job costing
11- The undercosting and overcosting of products and product-cost-cross subsidization
12- The difference between traditional cost allocation and activity based system of cost allocation
13- Costing products and service using activity based costing (ABC)
14- Defining master budget and the advantages of budgeting
15- Preparing operating budget and its supporting schedules
16- Developing flexible budgets and computing flexible budget variances and sales volume variances
17- Computing price and efficiency variance for direct material and direct labor
18- Standard costs and their use in variances analysis
19- Computing variable overhead spending and efficiency variances
20- Efficiency variances for direct and indirect cost items
21- Computing the budgeted fixed overhead rate
22- The difference between absorption costing and variable costing
23- How to prepare an income statement under absorption costing and under variable costing
24- Steps in estimating a cost function

TEACHING METHODOLOGY

Formal and informal lecturing
Demonstrational problem solving
Class discussions
Additional research and reading assignments
Instructional technologies (PowerPoint) will be leveraged as needed to reinforce learning

COURSE ADMINISTRATION

Attendance is mandatory, absences may affect grades.
Participation in class discussions is strongly encouraged and taken into consideration in grading.
Students are fully responsible for any materials presented in class or assigned by the instructor regardless of attendance or absence
Absences, whether justified or not, do not excuse students from responsibility for assignments, quizzes, exams or any other class requirements
Students may be dropped from the class upon missing more than (One-tenth) of class sessions.
Cell phones must be turned off during classes and put away. They are not allowed as calculators.
No assignments will be accepted or graded after the announced due date.
No make-ups will be offered unless a solid and legitimate excuse is provided.

ACADEMIC INTEGRITY
Students are expected to perform and behave in accordance with ethical standards typical of institutions of higher education, as prescribed in the Student Catalogue and the Student Handbook. In particular, acts of plagiarism, cheating, claiming someone else’s work as our own, copying and pasting and other similar behaviors are forbidden and may subject students to the appropriate disciplinary measures as prescribed by university and faculty policies and procedures.

MAIN TOPICS & TIME ESTIMATES

Topic
Time Estimate The Accountant’s Role in the Organization
2 hours An Introduction to Cost Terms and Purposes
4.5 hours Cost-Profit-Volume Analysis
4.5hours
Job Costing
6 hours Activity-Based Costing
4.5 hours Master Budget and Responsibility Accounting
4.5 hours Flexible Budgets, Direct Cost Variances, and Management Control.
6 hours Flexible Budgets, Overhead Variances, and Management Control
3 hours
Inventory Costing and Capacity Analysis
4.5 hours
Determining How Costs Behave
3

DETAILED MATERIAL PLANNING

Dates
Topics
Reference Material Sep 2
The Accountant’s Role in the Organization Chapter 1 Sep 4
The Accountant’s Role in the Organization
Chapter 1
Sep 9
An Introduction to Cost Terms and Purposes
Chapter 2
Sep 11
An Introduction to Cost Terms and Purposes
Chapter 2
Sep 16
An Introduction to Cost Terms and Purposes
Chapter 2
Sep 18
Cost-Profit-Volume Analysis
Chapter 3
Sep 23
Cost-Profit-Volume Analysis Chapter 3
Sep 25
Cost-Profit-Volume Analysis
Chapter 3
Sep 30
Job Costing
Chapter 4
Oct 2
Job Costing
Chapter 4
Oct 7
Job Costing
Chapter 4 Oct 9

Exam I
Chapters 1,2 ,3& 4 Oct 14 Activity-Based Costing Chapter 5
Oct 16 Activity-Based Costing
Chapter 5
Oct 21 Activity-Based Costing
Chapter 5
Oct 23
Master Budget and Responsibility Accounting
Chapter 6
Oct 28
Master Budget and Responsibility Accounting
Chapters 6
Oct 30
Master Budget and Responsibility Accounting
Chapter 6
Nov 4 Flexible Budgets, Direct Cost Variances, and Management Control.
Chapter 7
Nov 6
Exam II Chapters 5 & 6
Nov 11 Flexible Budgets, Direct Cost Variances, and Management Control.
Chapter 7
Nov 13
Flexible Budgets, Direct Cost Variances, and Management Control. Chapters 7
Nov 18
Flexible Budgets, Direct Cost Variances, and Management Control.Inventories
Chapter 7
Nov 20
Flexible Budgets, Overhead Variances, and Management Control Flexible Budgets
Chapters 8
Nov 25
Flexible Budgets, Overhead Variances, and Management Control Flexible Budgets
Chapter 8
Nov 27
Flexible Budgets, Overhead Variances, and Management Control Flexible Budgets
Chapter 8
Dec 2
Inventory Costing and Capacity Analysis
Chapter 9
Dec 4
Inventory Costing and Capacity Analysis
Chapter 9
Dec 9
Determining How Costs Behave
Chapter 10
Dec 11
Determining How Costs Behave
Chapter 10

Note:
Material planning may change due to unforeseen or unexpected circumstances. When such situations occur, the instructor will exercise every effort possible to provide the students with as much of an advance notice as possible.

COMMON PROFESSIONAL COMPONENT (CPC)

Total CPC Hours = 66 Hours
Hours
Area
Category
45
Accounting
Functional Areas
02
Finance
06
Management, including production, operational management, organizational behavior and human resources
01
Marketing
01
Legal environment of business
Business environment
01
Economics
02
Business Ethics
02
Global dimensions of Business
01
Information systems
Technical Skills
02
Quantitative methods/statistics
01
Business policies
Integrative areas
02
A comprehensive or integrating experience that enables a student to demonstrate the capacity to synthesize and apply knowledge and skills from an organizational perspective