Carroll Community College

ACCT-220, Cost Accounting

Credits: 3

Course Description

Cost Accounting provides an overview of the nature and purpose of cost accounting and covers job order and process costing, as well as standard costing, spoilage, budgeting, and relevant costs for decision making. Prerequisite: ACCT-102. Three hours lecture each week. Three credits. Three billable hours.

Course Objectives and Grading Information

Course Objectives: Upon completion of this course, the student will be able to:

1. Distinguish between financial accounting and managerial accounting and identify the major components of a management control system.

2. Differentiate between the different manufacturing costs.

3. Calculate breakeven pint and target operating income using cost-volume-profit analysis.

4. Demonstrate the job-order costing system for accounting for costs in a manufacturing company as well as a service company.

5. Compare and contrast job-order costing, process costing and activity-based accounting systems.

6. Demonstrate process costing using both the weighted average and firs-in, first-out (FIFO) methods.

7. Calculate the effects of spoilage, reworked units and scrap.

8.Assess the benefits derived by the organization from budgeting systems.

9. Prepare the supporting schedules and main statements for a master budget.

10. Distinguish between static budgets and flexible budgets.

11. Calculate price, efficiency and overhead variances.

12. Analyze the differences in operating income under absorption costing and variable costing.

13. Describe the five-step sequence in a decision process.

14. Describe the purpose of cost allocations and examine the different methods.