School of Business Administration

And Accountancy

ACCTNG3 (3 Units) - COST ACCOUNTING (COST ACCOUNTING AND COST MANAGEMENT)

1. Course Description. This course is designed to orient students to the cost accounting and cost
management framework of business. Topics discussed are: overview of cost accounting;
manufacturing cost accounting cycle; job cost systems; accounting, planning, and control for
materials, labor, and factory overhead; and standard costing.

2. Course coverage

Learning Contents/Topic

Course Syllabus
VMO
Seat Plan
Levelling of Expectations

1. INTRODUCTION TO COST ACCOUNTING

1.1 Definition, scope, objectives of cost accounting
1.2 Relationships of cost accounting to financial and management accounting

2. COST CONCEPTS
2.1 Nature, classification and purposes of cost
2.2 Elements of product cost, cost flow in service, trading and manufacturing businesses

3. JOB ORDER COSTING

3.1 Nature, definition and characteristics
3.2 Cost flow
3.2.1.1 Journal entries for manufacturing operations
3.2.1.2 Acquisition and usage of materials
3.2.1.2.1 Traditional control procedures
3.2.1.2.1.1 Order cycling
3.2.1.2.1.2 Min-max
3.2.1.2.1.3 Two-bin
3.2.1.2.1.4 Automatic order
3.2.1.2.1.5 ABC plan
3.2.1.2.2 Alternative inventory management systems
3.2.1.2.2.1 Economic order quantity (EOQ)
3.2.1.2.2.2 Total Quality Management (TQM)
3.2.1.2.3 Cost reduction techniques
3.2.1.2.3.1 Work study
3.2.1.2.3.2 Time and motion study
3.2.1.2.3.3 Value analysis

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 FIRST GRADING EXAMINATION

3.2.1.3 Labor cost incurrence and distribution

3.2.1.4 Incurrence of overhead
3.2.1.5 Preparation of cost statements (service, trading and manufacturing operations),
income statement and balance sheet
3.2.1.6 Accounting and control of scrap, defective and spoiled materials and goods

MIDTERM EXAMINATION

4. STANDARD COSTING
4.1 Definition and objectives standard costing
4.2 Uses and limitations of standard costing
4.2.1 Determination and setting up of standards
4.2.2 Variance Analysis
4.2.2.1 Materials
4.2.2.2 Labor
4.2.2.3 Overhead (including four variance method)
4.3 Journal entries and preparation of cost of goods manufactured and sold for typical firms using
standard cost and how variances are recorded and disposed of.

FINAL EXAMINATION

Grading System
For Professional Board Examination Subjects: the cut-off score is 70%. The highest possible grade is
ninety-nine (90); the lowest passing grade is seventy-five (75); and the lowest failing grade is sixty-five
(65).

First grading Class standing = 70%; Exam = 30%

Midterms Class standing = 60%; Exam = 40%
(Tentative Midterm Grade x 2 + First Grading Grade) / 3 = Midterm Grade
Finals Class standing = 50%; Exam = 50%
(Tentative Final Grade x 2 + Midterm Grade) / 3 = Final Midterm Grade

Textbook and References:

TEXTBOOK
Raiborn (20XX). Cost Accounting. USA: Cengage Learning, Inc.

REFERENCES
Agamata, F. T. (2008). Managerial Advisory Services (A comprehensive Guide), Manila: GIC
Enterprises, CO. Inc.
Atkinson, A (2009). Management Accounting, 4th edition. NJ, USA: Pearson Educ., Inc.
Barfield, J. (2006). Cost Accounting. USA: Southwestern.
Brigham, E. (2005). Financial Management: Theory and Practice. The Dryden Press.
Cabrera, E.B. (2008). Management Advisory Services, Volume 1. Manila: GIC Enterprises, CO. Inc.
Garrison, R (2006). Managerial Accounting. USA, McGrawHill.
Hilton, R.W. (2008). Managerial Accounting. USA, McGrawHill.

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Horngren, C. (2007). Cost Accounting: A Management Emphasis, 11th Edition. New Jersey: Prentice-
Hall.
Knott, G. (2004). Financial Management. NY: Palgrave MAcMillan.
Lauderback III (2009). Managerial Accounting. Southwestern.
Mejorada, N. (2006). Cost Accounting. Manila: GIC Publishing.
Usry, M. F. (2002). Cost Accounting, 13th edition.
Vanhorne, J.C. (2003). Financial Management and Policy, 11th edition. New Jersey: Prentice Hall.
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