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 Kuiate-Sobngwi Term: Spring 2018 Telephone: 956-665-7936 Email address: Christian.sobngwi@utrgv.edu Office: COBE 220 A Course Class Location Meeting Time Office Hours ACC 3324.03 E-VCOBE 116 TR 1:40 PM 2:55 PM TR 3:00 PM -5:00 PM or by appointment Prerequisite: ACC 2302 with a grade of C or better. As a reminder, this is an upper-level accounting course. Successfully completing this class requires that you devote sufficient time and efforts to learn the details associated with the various topics. If you have not recently had an accounting course, make sure to consult with me before you enroll in the class. Textbook and/or Resource Material Cost Accounting: A Managerial Emphasis, 16 th edition by Charles T. Horngren. Srikant Datar, and Madhav V. Rajan. Publisher: Pearson. ISBN: 9780134476384. 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 (882-E) and non-programmable calculator for all exams. The final course grade will be determined as follows: Exam 1 10% Exam 2 15% Exam 3 15% Exam 4 15% Homework sets 10% Group Projects 20% Group Essay Assignment 15% 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. HOMEWORK ASSIGNMENTS : Required to be done online via your Pearson MyLab account for this course. The lowest two scores of all the homework assignments will be dropped from calculating the average grade. This will allow for any issues that come up causing incomplete homework assignments. GROUP EXCEL PROJECTS: You will have to complete seven assignments that require you to use Microsoft Excel programming skills to apply and automate the manual procedures learned in class. These are group projects. By the end of the first week of class, you will need to have formed your group for the semester. Groups consists of a maximum of five members. The enrollment in groups takes place on Blackboard through the appropriate link. The projects will be posted on Blackboard and you will have to submit them electronically on Blackboard on or before the associated deadlines. Assignment 1: Statement of cost of goods manufactured and statement of cost of goods sold. Assignment 2: Basic job costing problem Assignment 3: Comprehensive job costing problem Assignment 4: Process costing 1 Assignment 5: Comprehensive process costing problem Assignment 6: Flexible budgeting problem Assignment 7: Cost allocation problem 3
GROUP ESSAY: You will have to complete an essay assignment based on your reading comprehension and analysis of two articles published in the February and March 2008 issues of Strategic Finance (a publication of the Institute of Management Accountants). After reading the articles, you will discuss the accounting for revenues, costs, and inventories in the movie industry. I expect you to develop your essay using the following format: 1. Introduction: Clearly highlighting the insight you gained after analyzing the topic of the essay, and also outlining your essay to help the reader navigate through the sections; 2. Section 1 of the body: Presentation of the movie industry from an accounting/strategic management perspective by discussing the value chain of the industry and the competitive landscape in the industry using Porter s five forces analysis ; 3. Section 2 of the body: Analysis of revenue recognition in the movie industry. You are expected to refer to the Accounting Codification to obtain the relevant authoritative guidance that determines how movie studios should account for revenues. You should then illustrate your point by referring to the example of a specific movie studio. Look up a company, obtain their most recent 10-K, and from the section Notes to the Financial Statements, study how they account for revenues. 4. Section 3 of the body: Analysis of cost recognition in the movie industry. You will use the articles, the authoritative guidance and a company 10-K to define production costs. Additionally, you are expected to refer to the Accounting Codification to obtain the relevant authoritative guidance that determines how movie studios should account for production costs. You should then illustrate your point by referring to the example of a specific movie studio. Look up a company, obtain their most recent 10-K, and from the section Notes to the Financial Statements, study how they account for production costs. 5. Section 4 of the body: Analysis of inventories in the movie industry. To our surprise, movie studios that seem to belong to the service sector of the economy do have inventories on their balance sheets. You will use the articles, the authoritative guidance and a company 10-K to identify these inventories. Additionally, you are expected to refer to the Accounting Codification to obtain the relevant authoritative guidance that determines how movie studios should account for these inventory items. You should then illustrate your point by referring to the example of a specific movie studio. Look up a company, obtain their most recent 10-K, and from the section Notes to the Financial Statements, study how they account for inventory. 6. Conclusion. The objective of this essay is for you to develop a comprehensive understanding of costing issues pertaining to the motion picture industry. The essay should follow the basic guidelines of writing composition and consists of an introduction, a body, and a conclusion. For every section of the body, make sure to use multiple paragraphs. Remember that a paragraph is used to develop one idea. The paragraph must have a topic sentence. Some sentences to support the main idea, and a transition sentence to lead to the next paragraph. At a minimum, the essay should consist of five pages (double-spaced and font size 12). 4
The articles references 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+. Young, S. Mark and Gong, James J. and Van der Stede, W. A. and Sandino, Tatiana and Du, Fei (2008) The business of selling movies. Strategic Finance, 89 (9). pp. 35-41. ISSN 1524-833X You can download the articles from the UTRGV library using your UTRGV credentials. You will have to submit it electronically to the appropriate link on Blackboard on or before the deadline. To access the Accounting Codification, you will need to log in on the following website: http://www2.aaahq.org/asclogin.cfm The credentials to access the pronouncements are found on Blackboard. 5
Tentative Calendar of Activities Days Chapter Topic 16-Jan Chapter 1 Syllabus, Introduction to Cost Accounting 18-Jan Chapter 2 Review of Cost Accumulation Systems, Cost Terminology, and Cost behavior 23-Jan Chapter 2 Review of Cost Accumulation Systems, Cost Terminology, and Cost behavior 25-Jan Chapter 4 Job Costing and Disposing of MOH variances 30-Jan Chapter 4 Job Costing and Disposing of MOH variances 1-Feb Chapter 4 Job Costing and Disposing of MOH variances 6-Feb Chapter 5 Activity-Based Costing and Activity-Based Management 8-Feb Chapter 5 Activity-Based Costing and Activity-Based Management 13-Feb Exam 1 Chapters 1, 2, 4, and 5 15-Feb Chapter 17 Process Costing 20-Feb Chapter 17 Process Costing 22-Feb Chapter 17 Process Costing 27-Feb Chapter 18 Spoilage, Rework, and Scrap 1-Mar Chapter 18 Spoilage, Rework, and Scrap 6-Mar Chapter 18 Spoilage, Rework, and Scrap 8-Mar Exam 2 Chapters: 17 and 18 13-Mar Spring Break 15-Mar Spring Break 20-Mar Chapter 7 Flexible Budgets, Direct Cost Variances, and Management Control 22-Mar Chapter 7 Flexible Budgets, Direct Cost Variances, and Management Control (project due date) 27-Mar Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management Control 29-Mar Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management Control 3-Apr Exam 3 Chapters: 7 and 8 5-Apr Chapter 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 10-Apr Chapter 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 12-Apr Chapter 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 17-Apr Chapter 15 Allocation of Support Department Costs, Common Costs and Revenues 19-Apr Chapter 15 Allocation of Support Department Costs, Common Costs and Revenues 24-Apr Chapter 16 Cost Allocation: Joint Products and Byproducts 26-Apr Chapter 16 Cost Allocation: Joint Products and Byproducts (Essay due date) 1-May Exam 4 Chapters: 12, 15, and 16 2-May University Study Day, No Class 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) 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: Spring 2018 Module 1 February 14 February 20 Spring 2018 Module 2 April 11 April 17 Spring 2018 (full semester) April 11 May 2 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. STUDENT SERVICES: Students who demonstrate financial need have a variety of options when it comes to paying for college costs, such as scholarships, grants, loans and work-study. Students should visit the Students Services Center (U Central) for additional information. U Central is located in BMAIN 1.100 (Brownsville) or ESSBL 1.145 (Edinburg) or can be reached by email (ucentral@utrgv.edu) or telephone: (888) 882-4026. In addition to financial aid, U Central can assist students with registration and admissions. Students seeking academic help in their studies can use university resources in addition to an instructor s office hours. University Resources include the Learning Center, Writing Center, Advising Center and Career Center. The centers provide services such as tutoring, writing help, critical thinking, study skills, degree planning, and student employment. Locations are: Learning center: BSTUN 2.10 (Brownsville) or ELCTR 100 (Edinburg) Writing center: BLIBR 3.206 (Brownsville) or ESTAC 3.119 (Edinburg) Advising center: BMAIN 1.400 (Brownsville) or ESWKH 101 (Edinburg) Career center: BCRTZ 129 (Brownsville) or ESSBL 2.101 (Edinburg) 7