UNIVERSITY OF TEXAS RIO GRANDE VALLEY ROBERT C. VACKAR COLLEGE OF BUSINESS AND ENTREPRENEURSHIP SCHOOL OF ACCOUNTANCY COST ACCOUNTING SYLLABUS ACC 3324: Cost Accounting Instructor: Dr. Christian K. Sobngwi Term: Spring 2016 Telephone: 956-665-7936 Email address: Christian.sobngwi@utrgv.edu Office: COBE 220 A Course Class Location Meeting Time Office Hours ACC 3324.03 The Learning Center 128 TR 1:40 PM 2:55 PM TR 3:00 PM -5:00 PM or by appointment ACC 3324.04 Vackar College of Business & Entrepreneurship 120 G TR 5:55 PM 7:10 PM TR 3:00 PM-5:00 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: 9780133781106. 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. You need to use your University email to register on MyLab. 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. A flyer with information 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 email 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 emailing system. Course Description and Prerequisites This course complements the coverage in ACC 2302 and focuses on cost accumulation and product costing, standard costing, variance analysis, strategic profitability analysis, cost allocation, and responsibility accounting. 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
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 results of direct materials, direct labor and overhead variance analyses for planning, control, and performance evaluation. Understanding the differences between support and producing departments and the rationale for cost allocations. 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. Robert C. Vackar College of Business and Entrepreneurship Learning Goals and Mission The Robert C. Vackar College of Business Entrepreneurship has adopted the following learning goals and objectives that each student should achieve while in the degree program. Not all goals and objectives are covered in each course; however, all goals and objectives should be addressed throughout the degree program. BBA Learning Goals Demonstrate foundational knowledge of functional area concepts and theories. Demonstrate effective business communication skills. Apply sustainable practices (economic, social and ethical, and environmental) to business decision-making. Demonstrate an understanding of how globalization, including conditions on the US-Mexico border, shape effective business decision making. Apply quantitative analytical skills to business decision-making. Demonstrate the ability to critically analyze business issues. Accounting Major Learning Objectives Demonstrate knowledge of accounting functional area concepts and theories Understand an accountant s ethical responsibility Demonstrate effective business decision-making skills using both quantitative and qualitative factors This course contributes to the following College of Business and Entrepreneurship learning goals: This course contributes to the following Department of Management learning objectives: How measured Exam, homework, and project. Project report, essay assignment, and class participation. Lectures and class discussion. Lectures, essay assignment, and class discussion. Exam, homework, and project. Exam, essay assignment, homework, and project. How measured Exam, homework, and project. Lectures, class discussion, exam, homework, and project. Exam, essay assignment, homework, and project. Our mission is to be the agent of innovation, knowledge discovery, and economic development in South Texas, Northern Mexico, and beyond, by offering a rigorous curriculum informed by experiential learning, 2
high quality research, and community partnerships. Your mastery of these learning goals and objectives help us to achieve this mission. Exams/Assignments/Grading Policy The tests may include multiple choice, essays, and/or problem type questions. Bring a green scantron and nonprogrammable calculator for all exams. The final course grade will be determined as follows: Exam 1 15% Exam 2 15% Exam 3 15% Exam 4 15% Homework sets 15% Project 15% Essay assignment 10% 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 March 23, 2017. The project is worth 15% 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 email. 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%) 3
INDIVIDUAL ESSAY ASSIGNMENT: You will have to complete an essay assignment based on your reading comprehension and analysis of an article published in the February 2008 issue of Strategic Finance (a publication of the Institute of Management Accountants). The article is part of a three-article series on the U.S. motion picture industry and focuses on the costs of making a movie. After reading the article, you will discuss cost and management accounting considerations in the motion picture industry by addressing the following issues: 1. The value chain of the motion picture industry; 2. The competitive landscape in the motion picture industry using Porter s five forces analysis; 3. The notion of net profit in the motion picture industry and cost allocation considerations; 4. Key elements to consider when conducting a cost variance analysis for the motion picture industry. The essay should follow the basic guidelines of writing composition and consists of an introduction, a body, and a conclusion. Each one of the afore-mentioned four issues will be the subject of a paragraph in the body of the essay. At a minimum, the essay should consist of five pages (double-spaced and font size 12). The article s reference are as follows: Young, S. Mark, et al. "The business of making movies: the U.S. motion picture industry generates close to $100 billion in revenues, is one of the country's largest exporters, and exerts enormous cultural influence worldwide. But today it also faces enormous pressures." Strategic Finance, Feb. 2008, p. 26+. You will can the article at the UTRGV library using your UTRGV credentials. You will have to submit it electronically to christian.sobngwi@utrgv.edu on or before the deadline. The essay is due on April 27, 2017. 4
Tentative Calendar of Activities Days Chapter Topic 17-Jan Chapter 1 Syllabus, Introduction to Cost Accounting 19-Jan Chapter 2 Review of Cost Accumulation Systems, Cost Terminology, and Cost behavior 24-Jan Chapter 2 Review of Cost Accumulation Systems, Cost Terminology, and Cost behavior 26-Jan Chapter 4 Job Costing and Disposing of MOH variances 31-Jan Chapter 4 Job Costing and Disposing of MOH variances 2-Feb Chapter 4 Job Costing and Disposing of MOH variances 7-Feb Chapter 5 Activity-Based Costing and Activity-Based Management 9-Feb Chapter 5 Activity-Based Costing and Activity-Based Management 14-Feb Exam 1 Chapters 1, 2, 4, and 5 16-Feb Chapter 17 Process Costing 21-Feb Chapter 17 Process Costing 23-Feb Chapter 17 Process Costing 28-Feb Chapter 18 Spoilage, Rework, and Scrap 2-Mar Chapter 18 Spoilage, Rework, and Scrap 7-Mar Chapter 18 Spoilage, Rework, and Scrap 9-Mar Exam 2 Chapters: 17 and 18 14-Mar Spring Break 16-Mar Spring Break 21-Mar Chapter 7 Flexible Budgets, Direct Cost Variances, and Management Control 23-Mar Chapter 7 Flexible Budgets, Direct Cost Variances, and Management Control (project due date) 28-Mar Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management Control 30-Mar Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management Control 4-Apr Exam 3 Chapters: 7 and 8 6-Apr Chapter 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 11-Apr Chapter 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 13-Apr Chapter 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 18-Apr Chapter 15 Allocation of Support Department Costs, Common Costs and Revenues 20-Apr Chapter 15 Allocation of Support Department Costs, Common Costs and Revenues 25-Apr Chapter 16 Cost Allocation: Joint Products and Byproducts 27-Apr Chapter 16 Cost Allocation: Joint Products and Byproducts (Essay due date) 2-May Exam 4 Chapters: 12, 15, and 16 4-May University Study Day, No Class 5
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) 882-7374 (Voice) or via email at accessibility@utrgv.edu. Edinburg Campus: Student Accessibility Services is located in 108 University Center and can be contacted by phone at (956) 665-7005 (Voice), (956) 665-3840 (Fax), or via email at accessibility@utrgv.edu. MANDATORY COURSE EVALUATION PERIOD: Students are required to complete an ONLINE evaluation of this course, accessed through your UTRGV account (http://my.utrgv.edu); you will be contacted through email with further instructions. Students who complete their evaluations will have priority access to their grades. Online evaluations will be available: Feb 15 Feb 21 for Module 1 courses Apr 12 Apr 18 for Module 2 courses Apr 12 May 3 for full spring semester courses 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 www.utrgv.edu/equity, 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