Course Code

Cost Accounting

Credit Hours 3

Contact Hrs/Week 3

Total Periods Allocated 32

COURSE OUTLINE
Course Description & Objectives:
Cost accounting course concerns with fundamental cost concepts, behavior, and analysis and the use of cost information to develop superior decision making process and outputs. This course introduces the production, communication, and the use of accounting Information within the context of business activities. Our financial reporting system has changed greatly over the past 50 years and will continue to change. The financial world is experiencing unparalleled challenges, such as globalization, deregulation, and the widespread use of the World Wide Web. In the midst of these changes is the accounting profession that must provide reliable and relevant information to users. Consequently, the course also brings in the awareness of the substance to students.

The discussion of the course also integrates all aspects of business such as strategic management, human resource, marketing, finance, and information systems. It brings together in integrated and comprehensive way the modern management accounting methods developed in the last 20 years. Throughout the course, you will be learning concepts and techniques of cost management and applying the knowledge in analyzing cases. I intend to ask you to critically think strategically and analytically about companies and their problems. In addition, you will be asked to conduct many analyses. The course is intended as a learning and practice field with your instructor and colleagues as your sparring partners.

Learning Methods:
I do not agree to the idea of teaching a specific content as the purpose of education. To educate is to invite students to think and to prepare their own framework from that they can learn more when they encounter a new experience. An interesting educational process, to me, is that from which both students and the teacher get a richer context. Consequently, this method requires a thorough preparation before class. There will be a quiz every once in a while. The quiz covers the text rather thoroughly and requires careful reading and good comprehension of the material.

Topics
Session Topics 1-2 Introduction Introduction to cost accounting, concept of cost vs. expense 3-4 Classification of cost (Direct and indirect cost, fixed cost, variable cost, semi variable cost) 5-6 Classification of cost Period cost, product cost, controllable cost, non controllable cost, Opportunity cost, prime cost and conversion cost. 7-8 Financial statements Cost of goods sold statement (Income statement of trading concern, income statement of manufacturing concern).Practical problems 9-10 Material control and determining cost (Meaning of material, objectives of inventory control, techniques of inventory control, stock levels. Practical problem 11-12 Economical order quantity Introduction to Economical order quantity, inventory turn over Practical problems 13-14 Material control and storing and issuing (Material purchase procedure ,store card ,bin card ,store ledger, 15-16 Material control and storing and issuing Inventory system periodic and perpetual, Pricing the issue of material, Method of pricing of material issue and returned) 17- 18 By product and joint product Introduction, practical problems 19-20 Break even point and cost volume profit analysis (Nature of break even analysis, applying cost volume-profit analysis).Practical problems 21-22 Factory overhead costing and accounting (Factory over head predetermine ,predetermine FOH rates, selection of base for FOH rate ,accounting for actual FOH ,FOH control and variance analysis) 23-24 Factory overhead- Departmentalization (overhead accounting ,Collection of overhead,allocaton and apportionment of overhead, production and services department) 25-26 Job order costing (Cost system actual and standard, job order cost accumulation procedures ) 27-28 Budgeting (various type of budgeting techniques) 29-30 Process costing (characteristics, Comparison of process costing and job order costing, Process costing procedure cost of production report) 31-32 Differential cost analysis (various techniques for differential cost analysis)

Assessment Scheme:
Quizzes Assignments

10% 05% Attendance 05% Mid Term Exam 30% Final Exam 50%

Recommended Text Books: S.No. 1 2 Author(s) Assigned Code

Title Cost Accounting planning and control (7th edition) Cost Accounting

Matz & Usry Arshad Awan

NAME WRITTEN BY: REVIEWED BY: APPROVED BY: REVISION NO.: M.Waseem Bari

DESIGNATION Lecturer Assistant professor Head of the Department

SIGNATURE

DATE