UNIVERSITY OF TEXAS RIO GRANDE VALLEY COLLEGE OF BUSINESS AND ENTREPRENEURSHIP SCHOOL OF ACCOUNTANCY COST ACCOUNTING SYLLABUS
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1 UNIVERSITY OF TEXAS RIO GRANDE VALLEY COLLEGE OF BUSINESS AND ENTREPRENEURSHIP SCHOOL OF ACCOUNTANCY COST ACCOUNTING SYLLABUS ACC 3324: Cost Accounting Instructor: Dr. Christian K. Sobngwi Term: Summer 2016 Telephone: address: Office: COBE 220A Course Class Location Meeting Time Office Hours ACC Business Administration Bldg. 113 MW 6:00 PM 9:45 PM MW 1:00 PM 3:00 PM or by appointment Prerequisite: ACC 2302 with a grade of C or better Textbook and/or Resource Material Cost Accounting: A Managerial Emphasis, 15 th edition by Charles T. Horngren. Srikant Datar, and Madhav V. Rajan. Publisher: Pearson. ISBN: Purchase the version with access to MyLab. We will use MyLab as the primary platform for homework sets. Use of Web Site MyLab will provide you access to the e-book version of the required textbook and to the online homework sets. Make sure to complete your homework sets by the posted deadline in order to obtain credit for your work. You are to work individually on the homework sets. Student information flyer for MyLab registration can be found on blackboard. Blackboard will be utilized for posting lecture slides, exam scores, instructions for completing the project, and any needed announcements. Other useful information may be posted on Blackboard from time to time. An will be sent, if necessary, to alert students and provide directions as to how to access such information. Messages to the entire class may also be sent out whenever necessary via the university ing system. Course Description and Prerequisites This course complements the coverage in ACC 2302 and focuses on product costing, cost accumulation, standard costing, variance analysis, cost allocation, responsibility accounting, and strategic profitability analysis. Learning Objectives/Outcomes for the Course The goals for this course are to learn tools and techniques being utilized by management accountants including cost accountants, controllers, and chief financial officers, and to learn problem-solving methods found helpful in developing, implementing, and evaluating decisions that impact the success of any business. 1
2 Expected student outcomes for this course are as follows: Describe how cost accounting is utilized for internal and external reporting purposes. Compare the job costing and process costing methods for determining the cost of a product with a particular emphasis on spoilage and rework costs. Evaluate the benefits of an activity-based costing system. Compute the direct materials, direct labor and overhead variances. Interpret the direct materials, direct labor and overhead variance analysis for planning, control, and performance evaluations. Understanding the differences between support and producing departments. Apply the techniques used to allocate the costs of support departments to producing departments. Describe joint production processes and distinguish between various types of outputs of such processes. Discuss ethical issues that arise in the area of cost accounting. College of Business and Entrepreneurship Learning Goals (Tentative) The College of Business and Entrepreneurship BBA program has adopted the following learning objectives that each student should achieve while in the degree program. BBA Learning Goals This course contributes to the following BBA learning objectives: Assessment method Critical thinking and problem-solving Exam, homework, and project Professional attitudes Exam and class participation An appreciation for the role of business in a free enterprise economy Basic quantitative and analytical skills Lectures and class discussions Exam, project, and homework Written communication skills Project report Oral communication skills Class participation Global awareness Lectures and class discussion Appreciation for cultural diversity Ethical decision-making Exam and homework Functional areas of business (e.g., finance, marketing, accounting) Exam and homework 2
3 School of Accountancy Goals (Tentative) The School of Accountancy has adopted the following learning objectives that each student should achieve while in the major. School of Accountancy/Accounting Major Learning Goals Accounting Theory and Professional Issues: Identification of primary users of accounting information, objectives of accounting, role of accounting, contemporary ethical issues Identification of the sources, and evolution of domestic and International GAAP Accounting Practice (Recognition and Measurement): Identification of basic recognition and measurement issues for Liabilities and Equity, detailed recognition and measurement issues for Assets Identification of Accounting Problem (i.e. basic recognition and measurement issues for Liabilities and Equity, detailed Assets) Identification of the relevant principles and guidance Interpretation and application of the principles and guidance Accounting Practice (Presentation): Prepare specific general purpose financial statements in proper form: Income statement, balance sheet, retained earnings statement, contents of cash flow statement Accounting Practice (Analysis and Interpretation): Identify basic categories of ratios (aspects of basic financial statement analysis) Identify and define (elements) of appropriate ratios Compute and interpret ratios Confidence feedback: Participation in tasks assigned during class This course contributes to the following learning objectives: 3
4 Exams/Assignments/Grading Policy The tests may include multiple choice and/or problem type questions. Bring a scantron and non-programmable calculator for all exams. The final course grade will be determined as follows: Exam 1 20% Exam 2 20% Exam 3 20% Homework sets 20% Project 20% Total 100% Grade Grid 90% -100% = A; 80% - 89% = B; 70% - 79% = C; 60% - 69% = D; below 60% = F In addition to the afore-mentioned elements used to determine students grades, the instructor reserves the right to administer extra-credit assignments in the form of in-class quizzes and out-of-class cases. PROJECT: You will have to complete one project that requires you to use Microsoft Excel programming skills to apply and automate the manual procedures learned in class. The project will be posted on Blackboard and you will have to submit it electronically to christian.sobngwi@utrgv.edu on or before the deadline. The project is due on June 20 th, The project is worth 20% of your total score in the class. The project covers the topic of process costing. You MUST work in groups. Groups must be made up of a minimum of 2 people and a maximum of 5. You should submit only one copy of the project for the whole group. When submitting your file for grading, please indicate the names, class, and student identification of each of the group members in the body of your . The project will be graded as follows: 1. Accuracy of answers (20%) 2. Automation of spreadsheet to account for cost flow assumption (20%) 3. Automation of spreadsheet to account for normal spoilage (20%) 4. Automation of spreadsheet to account for abnormal spoilage (20%) 5. Automation of the journal entry (20%) 4
5 Tentative Calendar of Activities Days Chapter Topic 6-Jun Chapters 1 and 2 Syllabus, Introduction to Cost Accounting, Cost Terminology, Cost behavior, Review of Cost Accumulation Systems 8-Jun Chapters 4 and 5 Activity-Based Costing and Activity-Based Management 13-Jun Chapters 17 and 18 Process Costing, Spoilage, Rework, and Scrap 15-Jun Exam 1 Chapters 1, 2, 4, 5, 17, and Jun Chapters 7 and 8 Flexible Budgets, Direct Cost Variances, Overhead Cost Variances, and Management Control 22-Jun Exam 2 Chapter 7 and 8 27-Jun Chapter 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 29-Jun Chapter 15 Allocation of Support Department Costs, Common Costs and Revenues 4-Jul No Class, Independence Day 6-Jul Chapter 16 Cost Allocation: Joint Products and Byproducts 11-Jul No Class, Study day 12-Jul Exam 3 Chapters 12, 15, and 16 5
6 STUDENTS WITH DISABILITIES: If you have a documented disability (physical, psychological, learning, or other disability which affects your academic performance) and would like to receive academic accommodations, please inform your instructor and contact Student Accessibility Services to schedule an appointment to initiate services. It is recommended that you schedule an appointment with Student Accessibility Services before classes start. However, accommodations can be provided at any time. Brownsville Campus: Student Accessibility Services is located in Cortez Hall Room 129 and can be contacted by phone at (956) (Voice) or via at accessibility@utrgv.edu. Edinburg Campus: Student Accessibility Services is located in 108 University Center and can be contacted by phone at (956) (Voice), (956) (Fax), or via at accessibility@utrgv.edu. MANDATORY COURSE EVALUATION PERIOD: Students are required to complete an ONLINE evaluation of this course, accessed through your UTRGV account ( you will be contacted through with further instructions. Online evaluations will be available from July 3 July 12, Students who complete their evaluations will have priority access to their grades. ATTENDANCE: Students are expected to attend all scheduled classes and may be dropped from the course for excessive absences. UTRGV s attendance policy excuses students from attending class if they are participating in officially sponsored university activities, such as athletics; for observance of religious holy days; or for military service. Students should contact the instructor in advance of the excused absence and arrange to make up missed work or examinations. SCHOLASTIC INTEGRITY: As members of a community dedicated to Honesty, Integrity and Respect, students are reminded that those who engage in scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and expulsion from the University. Scholastic dishonesty includes but is not limited to: cheating, plagiarism, and collusion; submission for credit of any work or materials that are attributable in whole or in part to another person; taking an examination for another person; any act designed to give unfair advantage to a student; or the attempt to commit such acts. Since scholastic dishonesty harms the individual, all students and the integrity of the University, policies on scholastic dishonesty will be strictly enforced (Board of Regents Rules and Regulations and UTRGV Academic Integrity Guidelines). All scholastic dishonesty incidents will be reported to the Dean of Students. SEXUAL HARASSMENT, DISCRIMINATION, and VIOLENCE: In accordance with UT System regulations, your instructor is a responsible employee for reporting purposes under Title IX regulations and so must report any instance, occurring during a student s time in college, of sexual assault, stalking, dating violence, domestic violence, or sexual harassment about which she/he becomes aware during this course through writing, discussion, or personal disclosure. More information can be found at including confidential resources available on campus. The faculty and staff of UTRGV actively strive to provide a learning, working, and living environment that promotes personal integrity, civility, and mutual respect in an environment free from sexual misconduct and discrimination. COURSE DROPS: According to UTRGV policy, students may drop any class without penalty earning a grade of DR until the official drop date. Following that date, students must be assigned a letter grade and can no longer drop the class. Students considering dropping the class should be aware of the 3-peat rule and the 6-drop rule so they can recognize how dropped classes may affect their academic success. The 6-drop rule refers to Texas law that dictates that undergraduate students may not drop more than six courses during their undergraduate career. Courses dropped at other Texas public higher education institutions will count toward the six-course drop limit. The 3-peat rule refers to additional fees charged to students who take the same class for the third time. 6
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