ACCOUNTING 6347 COST ACCOUNTING THEORY AND PRACTICE Fall 2008 Professor: Dr. Zhanel Mailibayeva 126 Barry Kaye Hall
ACCOUNTING 6347 COST ACCOUNTING THEORY AND PRACTICE Fall 2008
Dr. Zhanel Mailibayeva 126 Barry Kaye Hall [email protected]
Class meeting times:
M 7:10-10:00pm, College of Business Bldg 409
M 5:00-7:00 pm in my office And by appointment/e-mail
Required: Horngren, Datar, Foster, Rajan and Ittner Cost Accounting: A Managerial emphasis, 13th Edition, Prentice Hall
http://bb.fau.edu This course is supported by Blackboard. It is important that you have access to it as I will post announcements, homework problems solutions and other material on the website.
Course Description This is a foundation graduate course of theory and practical applications of cost accounting. In the past, cost accounting was limited to computing the manufacturing cost of the products a company produced. A firm needed to know the cost of its products to value its inventories and determine its cost of goods sold for financial reporting. With time the focus shifted from computing the cost of products to using the cost information to improve the firm's performance. Techniques and theories were developed to aid managers make better decisions, improve planning procedures, and evaluate and reward employees' performances. The recent increase in global competition has made firms aware that their product cost information may be crude and not very reliable. Thus the focus has shifted to more accurately determining the manufacturing costs of a firm’s products. In this course we will look at multiple facets of managerial/cost accounting. First, we will study traditional and innovative product costing procedures. Second, we will examine some of the standard techniques and theories for using costing information in the decision making. And finally, we will learn tools for planning, control and performance evaluation processes.
Grading: Points in ACG 6347 will be awarded as follows: 5 Quizzes @ 15 points each (drop the lowest score)
11 Homework problems @ 5 points each (drop the lowest scores)
Required Comprehensive Problems
There will be no extra credit assignments. The total number of points required to receive an A, B, etc. is different each semester and is not determined until after the final exam. As a guideline—but not a firm rule—the cutoffs for grades are as follows: Grade Letter
% of total points
Points earned in the course will be regularly posted on the web site for each student. If there is an error in the information posted, it is important to report the problem to me promptly. The last date to report errors in the scores listed on the web is the last day of classes, Friday, December 5th. Quizzes (60 points, 15 points each quiz) Approximately once every three weeks a quiz will be given in class. Quizzes may or may not be announced. No make-ups are given for quizzes missed by a student under any circumstances. A total of 5 quizzes will be given; the lowest score will be dropped. Homework Problems (50 points, 5 points each homework) Almost every class, one problem out of the homework assigned will be collected and graded. Which problem will be collected and graded will not be announced. A total of 11 homework problem(s) will be collected; the lowest score will be dropped. If a student must miss a class for a legitimate reason (e.g. family emergency, military obligations, university-approved event), he/she can submit his/her entire homework assignment prior to the date of his/her absence along with written documentation indicating the reason for the absence. Homework will not be accepted if it is submitted after the absence has occurred.
If a student is ill, he/she may submit his/her entire homework late if it is accompanied by written documentation of the illness from a health official. Since the answers to the regularly assigned homework problems will have been posted on the web, I reserve the right to assign alternative problems. Required “Comprehensive Problems” (20 points) A comprehensive set of problems covering the final topics in the course will be assigned at the end of the course. Participation Policy (40 points) The purpose of class participation is to help the instructor make sure the students are learning the course material. In order to encourage students to actively participate in the class, students are given points based on their level of preparedness and contribution to the class. Participation points can be earned by: 1) Demonstrating that one is prepared for class. Being prepared means, among other things, that you have read all assigned materials and have completed all assigned homework problems. Evidence that you have not done these things will result in loss of points. 2) Class performance. Volunteering good answers and comments to my questions; the answer need not be correct, but should be thoughtful. Note that it is quality, and not quantity, of responses that will be considered. Midterm and Final Examinations (250 points) The midterm and final examinations will contain multiple-choice problems, work out problems and written essays. Final examination will be comprehensive. If a student is unable to attend an examination due to a legitimate reason (e.g., a concurrent examination, or as outlined in the homework submission guidelines above), the student should notify me one week prior to the final exam to schedule a make-up exam. Academic Honesty All students are required to adhere to the School of Accounting Course Policies including an academic honesty policy: http://soa.fau.edu/policies.html. Failure to follow these regulations may lead to receiving grade F in the course. Disabilities In compliance with the Americans with Disabilities Act (ADA), students who require special accommodations due to a disability to properly execute coursework must register with the Office for Students with Disabilities (OSD) and follow all OSD Procedures.
SCHEDULE OF ASSIGNMENTS DATE
Chapter 1 - Introduction to managerial accounting and Chapter 2 – Basic cost terms and concepts Mon., Aug. 25
Introduction to the class. Cost definitions and classifications.
Mon., Sep. 1
Chapter 1, Skim pp. 2-18 Chapter 2, Read pp. 27-45
2-29, 2-32, 2-40
4-19, 4-21, 4-23, 4-25
Labor Day (no class).
Chapter 4 and Appendix - Job order costing systems Mon., Sep. 8
Basics of allocating costs. Actual and normal costing.
Chapter 5 – ABC costing and ABC management Mon., Sep. 15
Chapter 17 - Process costing Mon., Sep. 22
Equivalent units - Weighted average method of process costing
Chapter 17 Read pp. 595-609, 612-617
5-17, 5-27, 5-31, 5-37
Mon., Sep. 29
More on process costing. Catch-up and review for exam.
Review Chapters 1, 2, 4, 5 and 17
―Process Costing Problems‖ (to be Distributed)
Mon., Oct. 6
Midterm Examination (regular class time and location)
Chapters 1, 2, 4, 5 and 17
Chapter 9 – Inventory costing Mon., Oct. 13
Variable income versus absorption income. Manipulating income with absorption costing.
Chapter 9 (part I) Read pp. 294-308
Fri., Oct. 17
LAST DAY FOR STUDENT WHO IS FAILING THE COURSE TO DROP THE COURSE WITHOUT GETTING “F”
Chapter 3 and Appendix – Cost-volume-profit (CVP) analysis Mon., Oct. 20
CVP, break-even analysis. Multiple products.
Chapter 3 and Appendix
3-16, 3-21, 3-24, 3-35
Chapter 11 Chapter 12 (skim) Chapter 16 (skim)
Chapter 21 Read pp. 724-734
11-37(1, 6-7), 12-17, 12-27
Chapter 6 and Appendix
21-17, 21-21, 6-17, 6-19
Chapters 7 and 8
Chapter 11 – Decision making about production Mon., Oct. 27
General approach to decision making, Decision making with scarce resources, joint products.
Chapter 21 – Capital budgeting and cost analysis Mon., Nov. 3
NPV problems and the internal rate of return. Accounting rate of return and payback.
Chapter 6 - Master Budget and responsibility accounting Mon., Nov. 10
Overview of budgets. Master budgets
Chapter 7 - Flexible Budgets, Direct-cost variances Chapter 8 - Flexible Budgets, Overhead cost variances Mon., Nov. 17
Standard costing. Flexible budgets. Variance analysis
Chapters 7, 8 and 14- Total Variance Analysis Mon., Nov. 24
Sales Variances. Total Variance Analysis
Chapter 14 Read pp. 508-519
Mon., Dec. 1
Catch-up and review for exam.
Work on compre hensive problems
Fri., Dec. 5
COMPREHENSIVE PROBLEMS DUE BY END OF DAY
Fri., Dec. 5 – Thu., Dec. 11 - FINAL EXAM WEEK