ACCT 311 Cost Accounting Professor s notes* As of May 25, 2007

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1 ACCT 311 Cost Accounting Professor s notes* As of May 25, 2007 *Note: All content is based on the professor s opinion and may vary from professor to professor and student to student. All content may be changed without notice. This information is provided to provide an analysis, but is not binding in any form. would you rate the overall level of difficulty of this course? Level of demand = 6 This course requires a Group Research Paper, 2 exams, and weekly discussion board postings. This course can be taken with one other course within an 8-week format with a higher level of difficulty (or, of course, with a lower level of difficulty). If you are going to school DLP fulltime (that is, are not working) you could take this course and more than one other course. would you rate the level of reading requirements in this course? Level of demand = 6 The book has sixteen chapters. We cover twelve of them, at the rate of three every two weeks. would you rate the level of lecture requirements in this course? Level of demand = 6 The course includes the Publisher s Power Point Videos. would you rate the level of online exam requirements in this course? Level of demand = 6 The course has 2 online tests (the midterm and final). Although they are open book and open notes, students are responsible for all material found in the book. Questions come from an extensive exam database would you rate the level of discussion board requirements in this course? Level of Demand = 6 Students alternate between Posting their response to an item and posting a critique of another student s posting from the prior week.

2 would you rate the level of the written paper requirements in this course? Level of Demand = 7 Group Projects are always challenging. References must be in the APA format. Additional Comments: The course requires a major research paper of 8 pages in length. The paper is the result of a Group effort. The paper must be written in APA format, with proper formatting, in-text citations and academic references. Students who have not previously written a research paper or have been out of academics for many years, will experience difficulty with this assignment. The research for and writing of the paper should take place over several weeks; it is not an assignment that can be completed in one weekend. This course moves quickly, therefore students should expect to be very busy for the duration of the course. There are assignments due each week.

3 Syllabus LIBERTY UNIVERSITY DISTANCE LEARNING PROGRAM SCHOOL OF BUSINESS ACCT 311 COST ACCOUNTING REQUIRED TEXTBOOK Maher, M., Lanen W., & Rajan, M. V. (2006). Fundamentals of cost accounting. Boston: McGraw-Hill/Irwin. The textbook website is as follows: This site contains links to numerous student resources. COURSE DESCRIPTION This is a study of the principles and procedures used in the collection, recording and reporting of costs. Balance Sheet inventory valuation and the related Income Statement cost of goods sold valuation, determined using both job costing and process costing, are emphasized. Activity based costing is covered in depth. Traditional cost accounting is the main content of this course. I. RATIONALE Practicing accountants both in public and private accounting are expected to understand and apply the principles and procedures relating to cost collection, recording and reporting that are the subject matter of this course. II. III. PREREQUISITES ACCT 211 and 212 LEARNING OUTCOMES By the end of this course, the student will be able to: 1. Explain the importance of accounting data both quantitative and nonquantitative in the decision making process of management. 1.1 Explain how cost accounting information is used for decision making and performance evaluation in organizations. 1.2 Understand ethical issues faced by accountants and ways to deal with ethical issues that you face in your career. 1.3 Describe the three basic types of product costing systems: jobe, process, and operations. 1.4 Understand how a basic product costing system works. 1.5 Recognize the reasons that performance measures differ across levels of the organization.

4 1.6 Identify examples of nonfinancial performance measures and discuss the potential for improved performance resulting from improved activity measurement. 2. Explain how cost are accumulated in a job cost system. Also explain how standard costing is used and can be viewed as a variation of a basic job cost system Determine the assignment of costs in a job cost system Account for overhead using predetermined rates Explain how flexible budgets are developed and used Compute and interpret variable costs variances 2.5. Record costs in a standard costing system 3. Understand the similarities and differences between traditional job costing and activity-based costing (ABC). Use ABC to compute product costs. Explain the concept of activity-based cost management and cost of quality. Understand how and when to use process costing instead of job costing. 3.1 Explain how a two-stage product costing system works. 3.2 Compute product costs using ABC. 3.3 Compare ABC costing to traditional costing methods. 3.4 Explain the concept of activity-based cost management. 3.5 Use ABC methods to assess customer and supplier profitability. 3.6 Identify how activities that influence quality affect costs and profitability. 3.7 Compare the costs of quality control to the costs of failing to control quality. 3.8 Explain the significance of the concept of resources supplied versus resources used. 3.9 Use process costing (both FIFO and Weighted Average) to compute costs. 4. Explain the concept of and accounting for joint costs and by-products. Define cost center, revenue center and profit center and their use by management. Analyze the effect of transfer pricing choices on management s behaviors and company profits Allocate service department costs using the direct method Allocate service department costs using the step method Allocate service department costs using the reciprocal method Allocate joint costs using the net realizable method Allocate joint costs using the physical quantities method Account for by-products Explain the basic issues associated with transfer pricing Use the general transfer pricing rules and explain the underlying basis for them Identify the behavioral issues and incentive effects of negotiated transfer prices, cost-based transfer prices, and market-based transfer prices.

5 IV. MATERIALS FOR LEARNING A. Internet access and Microsoft Word B. Textbook V. COURSE REQUIREMENTS AND ASSIGNMENTS Your grade will be determined by your performance in the following activities. Each assignment is to be submitted to the professor at the conclusion of the session due.

6 ACTIVITY DESCRIPTION POINTS Exams Collaborative Learning Project Discussion Boards and Questions Two tests will be required in this course: a midterm and a final. The tests are online, open-book, typically comprised of true-false and/or multiplechoice questions. You will have 2 ½ contiguous hours to complete each exam, as it must be completed in one sitting. Each Group will submit a written research paper. Instruction for the Collaborative Learning Project may be found at the end of this syllabus. Late projects will not be accepted. The discussions for this course will be divided into four MODULES. In this course, ACCT 311, the discussions are responses to homework problems from the textbook. At the beginning of each MODULE, under course assignments, the professor will post group discussion questions or problems. Each student will be required to write a substantive written response/answer to two of the discussion questions or problems, (one from each of the first two chapters in each module) and post those responses to the Discussion Board (Worth 25 points towards the course grade for each posting). Correct use of English and grammar are required. NOTE: THIS IS DUE FIRST SATURDAY OF EACH MODULE. Additionally, each student will be required to post a SUBSTANTIVE written response to at least one other student s Discussion Board posting. NOTE: THIS IS DUE THE SECOND SATURDAY EVENING OF EACH MODULE. And, also due by the Second Saturday evening of each module is a posting of a response/answer to one item in the third chapter of each module. Explanation of what is expected in a posting and of what is meant by a substantive written response is given in ASSIGNMENTS section of Blackboard along with the selected questions or problems. Total points VI. COURSE GRADING AND POLICIES A. Weight EXAM 1 EXAM 2 COLLABORATIVE LEARNING PROJECT DISCUSSION QUESTIONS DISCUSSION RESPONSES 200 pts. 200 pts. 200 pts. 300 pts. 100 pts. B. Scale A = B = C = D = F = 0 600

7 C. Theory Research Paper Using the off campus electronic data bases provided by the Liberty University Library and other sources, search for journal articles in professional accounting and business journals that pertain to topics covered in ACCT 311. Your group will choose a topic that deals with some aspect of theory relative to topics covered in ACCT 311, seek your professor s approval of the topic, and write (using the collaborative learning process) a research paper. The project is due at the end of week six. All group members must participate in the research and writing process. It is a group effort. This assignment should be 8 10 typewritten double-spaced pages in length, with 1-inch margins, and pagination. The font you choose must be 12 point type or less. The paper must include references from at least five different sources. Be sure to include a title page and a reference page in addition to your essay pages. The title page and the reference page DO NOT count as part of the 8 10 page writing requirement. FAILURE TO CITE ALL SOURCES USED IN YOUR PAPER, OR PLAIGARISM OF ANY KIND WILL RESULT IN A GRADE OF ZERO. PLAIGARISM OCCURS WHEN A STUDENT EITHER INCLUDES THE WORDS OF OTHERS IN A PAPER WITHOUT PROPERLY ATTIBUTING THE SOURCE, OR CUTS AND PASTES FROM A SOURCE DIRECTLY INTO A PAPER WITHOUT INCLUDING QUOTATION MARKS WITH SOURCE ATTRIBUTION. D. Disability Assistance Students with a documented disability may contact the DLP Office of Disability Academic Support (ODAS) at to make arrangements for academic accommodations.

8 Course Chart for ACCT 311 MODULE WEEKS CHAPTERS 1 1, 2 Fundamentals of Cost Accounting 1, 5, & 17 LEARNING OUTCOMES , 4 6, 15, & , 6 8, 9, & 7 (in that order) , 8 10, 14, & ASSIGNMENTS DQ 1 DQ 1 Response TOTAL DQ 2 DQ 2 Response Mid-term Exam TOTAL DQ 3 DQ 3 Response Collaborative Project TOTAL DQ 4 DQ 4 Response Final Exam TOTAL POINTS TOTAL 1000

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