Universitat Pompeu Fabra 1

Transcription

1 Teachingplan CostAccountingI Degrees: International Business Economics (IBE Code: Administración y Dirección de Empresas (ADE Code: Academic year: third or fourth Trimester: First Number of ECTS credits: 5 Hours of student dedication: 125 Language: English Universitat Pompeu Fabra 1

2 1. Presentationofthesubject Cost Accounting I is a compulsory subject on the Bachelor's Degree in Business Sciences. The basic objective of the subject is to understand the procedures used by companiestocalculatethecostoftheproductsandservicestheyofferinorderto maketherightdecisions. Cost accounting is of strategic importance in an increasingly competitive environment. ThesubjecthasbeenadaptedtotheEuropeancreditssystem,aslaiddowninthe EuropeanHigherEducationArea.Withthisinmind,asetofskillsstudentsneedto acquireinordertopassthesubjecthavebeendrawnup. Classroomhourshavebeenreducedtocreatemoretimeforactivelearningonthe partofthestudent.thismeansstudentsareinvolvedonanongoingbasisinthe subjectasitdevelopsbymeansofcontinuousassessmentandpersonalstudyof theworkslistedinthebibliography.moreimportancehasbeengiventoteamwork andcommunicationsability,bothoralandwritten,sincethesearetwokeyskillsin thecareerdevelopmentofbusinesssciencesgraduates. 2. Competencestobeattained TheknowledgethatstudentsmustacquireinCostAccountingI,outlinedintermsof generalandspecificcompetences,aresetoutbelow. Generalcompetences* 1.' Tounderstandandinterpretacademictextsinanappropriateand reasonedmanner. 2.' Tobeabletojustifypositionswithconsistentarguments,aswellasto defendthempublically. 3.' TobeabletousetheEnglishlanguageinallworkNrelatedenvironments (read,writeandspeakinaformalmanner. 4.' TohaveconsolidatedhabitsofselfNdiscipline,selfNcommitmentandrigor intheconductofacademicwork,itsorganizationanditspropertiming. 5.' Tohaveaproactiveattitudeinexploringoftenignoredmatters,a fundamentalskillinalleducationalprocessesandlongnrunprofessional life. 6.' Tobeabletoapplyacquiredknowledgeflexiblyandcreativelytonew contextsandsituations. 7.' Toshowasufficientlevelofknowledgerequiredforprofessional performance. 8.' Toknowthedifferentcontextsinwhichonemaywork:economic, industry,market,firm,anddepartment. 9.' Tousetheappropriateinformationfordevisingproposalsandproblem solving. * These competences correspond to the general competences G1, G2, G4, G9, Universitat Pompeu Fabra 2

3 G10, G11, G13, G14 and G16 (IBE or G17 (ADE from the Memoria para la solicituddeverificacióndetítulosoficiales. Note:GeneralcompetenciesG16forIBEandG17forADEareidentical.Wethus presentthemjointlyforthesakeofbrevity. Specificcompetences 1.' To%develop%the%skills%needed%to%calculate%the%product%cost%following% different%costing%systems.%% 2.' To%develop%the%skills%needed%to%identify%budget%deviations%and%their% causes. Universitat Pompeu Fabra 3

4 3. Contents Thecontentofthesubjectcanbefoundinthebasicandrecommendedbibliography for each topic. The recommended bibliography will allow the student to deepen the knowledge of the area but it is not indispensable to achieve the objectives of each topic. Thesubjectisdividedintoeighttopicseachofthemhasitsownobjectiveswiththe aimtoachievethegeneralobjectivesofthesubject. Topic1: Introduction.CostClassifications. Objectives: Afterstudyingthistopic,youshouldbeableto ' differentiate between financial accounting, management accounting and cost accounting. ' describetheobjectivesofmanagementaccountingandcostaccounting. ' distinguishbetweentheconceptsofexpense,cost,paymentandinvestment. ' list the main types of cost: classification by nature, fixed and variable costs, direct and indirect costs, product and period costs, opportunity costs, classificationbyfunctionalareasandotherclassifications. Program: FinancialaccountingNManagementaccountingNCostaccounting.Differencesbetween expense, cost, payment and investment. Classifications of costs: by nature, by function,directandindirectcosts,productandperiodcosts,variableandfixedcosts, opportunity costs, historic and current/standard/replacement costs, other types of costs. Basicreferences: ' Drury2012,Chapters1and2 ' AmatandSoldevila2002,Chapter 'See'Section'5'for'the'complete'references.' Universitat Pompeu Fabra 4

5 Topic2: CostingMethodsI:PartialCosting. Objectives: Afterstudyingthistopic,youshouldbeableto ' calculatethecostsusingoneofthepartialcostingapproaches:directcosting, variablecosting,evolveddirectcostingandevolvedvariablecosting. ' understandthedifferencesbetweencompaniesproducingonlyoneproductand companiesproducingseveralproducts. ' calculatetheprofitandlossusingapartialcostingmethod. ' distinguishbetweenjobcostingandprocesscosting. ' prepareajobcostcard. ' knowhowtotreatdirectandindirectcostsinajobcostingsystem. ' calculatetheresults(profitsorlossesgeneratedbyunfinishedcontracts. Program: Costingmethods.Directcosting.Otherpartialcostingmethods:Evolveddirectcosting, Variable costing, and evolved variable costing. Job costing system: Job cost card. Treatmentofcostsinajobcostingsystem:directcosts,indirectmanufacturingcosts, assignment of other indirect costs. Calculation of the results (profits or losses generatedbyunfinishedcontracts. Basicreferences: ' Drury2012,Chapters3and4(excerpts ' AmatandSoldevila2002,Chapters2and3. Topic3: BreakevenPointandCostCVolumeCProfitAnalysis. Objectives: Afterstudyingthistopic,youshouldbeableto ' definethebreakevenpoint. ' calculateandinterpretthebreakevenpoint. ' explain essential features of costnvolumenprofit analysis and describe its underlyingassumptions. ' applycostnvolumenprofitanalysis. Program: The breakeven point. Sensitivity Analysis. CostNvolumeNprofit Analysis. Multiproduct companies. Basicreferences: ' Drury2012,Chapter8 ' AmatandSoldevila2002,Chapter2. Universitat Pompeu Fabra 5

6 Topic4: CostingMethodsII:Fullcosting. Objectives: Afterstudyingthistopic,youshouldbeableto ' differentiatebetweenpartialcostingsystemsandfullcostingsystems. ' accountforoverheadexpenditure. ' assign indirect costs (overheads to operating (production and support (servicedepartments. ' identifyhowtochargeindirectcosts(overheadstoproducts:indirectncostrate (overheadrate. ' explainhowtotreatundernoroverallocatedindirectcostsandhowtheyaffect theprofitorloss. ' accountforscrap,wasteandbynproducts. ' describehowtotreatworkinprogress(wipinaccounting. Program: Partialcostingandfullcosting.Processcosting.Fullcostingbydepartments:Dividethe companyintodepartments.operatingandsupportdepartments.allocationofindirect coststooperatingandsupportdepartments.assignmentofcostsallocatedtosupport departmentstooperatingdepartments.supportdepartmentswithreciprocalservices, indirectncost rate and equivalent units, cost per unit of product. Problems of cost calculation: subnactivity costs (underallocated indirect costs, overnactivity benefits (overallocatedindirectcosts,valuationofscrap,wasteandbynproducts.valuationof workinprogress. Basicreferences: ' Drury2012,Chapters3to5,and7(excerpts ' AmatandSoldevila2002,Chapter4. Topic5: CostingMethodsIII:ActivityBasedCosting(ABC. Objectives: Afterstudyingthistopic,youshouldbeableto ' beawareofthechangeshappeninginthebusinesscontextandtheimpactof thosechangesonthecostandmanagementaccountingsystems. ' describetheconceptualframeworkofactivitybasedcosting(abc. ' identifytheactivitiesandcostdrivers. ' explain the differences, advantages and disadvantages of ABC in relation to traditionalcostingsystems. Program: Changes in the business context and their impact on the accounting systems. Description of the ABC model. Activities: concept, main activities, support activities. Costdrivers.AdvantagesanddisadvantagesofABC. Basicreferences: ' Drury2012,Chapter11[followNuponChapters3to5,and7] ' AmatandSoldevila2002,Chapter5. Universitat Pompeu Fabra 6

7 Topic6: StandardCostingandVarianceAnalysis. Objectives: Afterstudyingthistopic,youshouldbeableto ' understandvarianceanalysisasanimportanttoolforbusinessmanagement. ' calculatethemaintypesofvariances. ' choose the most appropriate model of variance analysis according to the company'scostingmethod. ' analyzevarianceswiththeobjectivetoidentifysuitablecorrectiveactions. Program: Maintypesofvariances:directcostvariances,indirectcostvariances,salesvariances. Varianceanalysismodelsaccordingtothecostingmethodused.Calculatemarginsand resultsincludingvariances.reportonvariances. Basicreferences: ' Drury2012,Chapters17and18 ' AmatandSoldevila2002,Chapter7. Topic7: CostAccountingandtheDecisionCMakingProcess. Objectives: Afterstudyingthistopic,youshouldbeableto ' applycostaccountingconceptsandtechniquesinthedecisionnmakingprocess. Make decisions such as pricing, special order pricing, makenornbuy and eliminationofapartofthecompanyorreplacementofequipment. ' understand the relevance of different types of costs in the decisionnmaking processsuchasrelevantcosts,sunkcostsorcontrollablecosts. ' explainthebasicfeaturesofthetheoryofconstraintsandapplythistheoryin thedecisionnmakingprocess. Program: Relevant costs. Make decisions with cost accounting data: pricing, makenornbuy (outsourcing, eliminatingapartofthecompany,equipmentreplacement.theoryof constraints.limitationsofthedatainthedecisionnmakingprocess. Basicreferences: ' Drury2012,Chapter9 ' AmatandSoldevila2002,Chapter8. Universitat Pompeu Fabra 7

8 4. Assessment The assessment system that has been devised is focused in a way that allows both lecturer and student to have points of reference for how the learning is progressing andforhowthisprocessisadvancingthroughouttheterm. 4.1.'General'assessment'criteria' Weighting: 1.' Continuousassessment:40%ofthefinalmark 1.1.'Practicals:10% 1.2.'Reportpresentation:30% 2.' Finalassessment:60%ofthefinalmark 1.Continuousassessment(40%: Thecontinuousassessmentforthesubjectiscarriedoutbymeansof: 1.1. Practicals: submission of practical assignments and active seminar class participation(10%. Objective Tocontextualiseandapplytheproceduresandconceptstaughtto(numerical casestudies. Groups Practicalsneedtobecarriedoutingroupsofthreetofivestudents. Assessment Participationinseminarsessionsandsubmissionofhomeworkhaveaweightof 10%towardsthefinalmark.Assignedexercisesmustbesolvedathomeand submitted at the beginning of the seminar. Correct solutions and answers to doubtswillbeprovidedduringthesessions.studentswillalsosolveinrealtime exercisesassignedadhocbytheseminarprofessor Report presentation: submission and presentation of an applied report (30%. Objective To assess the students analytical capacity by applying the concepts studied throughoutthecourse. Groups The reports must be developed within the same groups of three to five studentsthathavebeenformedfortheseminarsession. Universitat Pompeu Fabra 8

9 Assessment The report presentation has a weight of 30% towards the final mark. Oral presentations will be made by the student groups during seminar or theory sessions. These presentations will be based on a report of no more than ten pages previously submitted by the indicated deadline and following the providedinstructions. 2.Finalassessment(60%: Objective Toassesstheknowledgeofconcepts,proceduresandmethodslearnedduringthe term. Assessment Studentswillsitawrittenexamontheirowncoveringboththeoreticalandpractical aspects.apassmarkisneededintheexam(atleastfiveoutoftentopassthe subject. 4.2.'Exam'retake'policy'and'summary'of'assessment'criteria' Thecontinuousassessmentcannotberetakenormadeupfor.Thisisvalidforboth thepracticals(10%andthereport(30%. Thefinalexam(60%canberetaken,incaseofhavingfailed,onthedateindicated bytheuniversity. Thefollowingtablesummarizestheassessmentcriteriaandthepossibilitiesofmaking upforafailmark: ' Continuousassessment (40% Practicals (10% Finalexamination (60% Report presentation (30% Yes Yes Theweightingofthe continuousassessment withtheexammarkis carriedoutprovidedthe studentpassesthefinal assessment(atleast fiveoutoften NoretakeormakeNup possibilities Incaseoffailing,retake possibilityinfebruary Universitat Pompeu Fabra 9

10 5. Bibliographyandteachingresources 5.1.'Bibliography' ACCID (2010: Noves tendències en control i reducció de costos, Monografia de la RevistadeComptabilitatiDirecció,Barcelona. Amat, O.m Soldevila, P. (2002: Contabilidad y Gestión de Costos, Ediciones Gestión 2000,SA,Barcelona. Amat,O.iSoldevila,P.(2010:Comptabilitatigestiódecostos,ACCID,Barcelona. Drury, C. (2012: Management and Cost Accounting, 8th edition, Cengage Learning, Hampshire. Horngren, C.T.m Foster, G.m Datar, S.M. (2011: Cost Accounting: A Managerial Emphasis,14thedition,PrenticeHall,NewJersey. Lucey,T.(2007:Costing,ThomsonLearning,Londres. Rosanas,J.M.(1994:Contabilidaddecostesparalatomadedecisiones.Descléede Brouwer,Bilbao. 5.2.'Teaching'resources' -' -' -' Blockofexercises. Classslides. Notes. 6. Teachingmethodology Thissubjectusesavarietyofsessionsandworkmethodssostudentscanacquirethe knowledgeoutlinedintheprogramme.thesessionsaredividedintotwomaingroups: classroomsessionsandconsultationandstudysessions. CLASSROOMSESSIONS Plenary sessions: 90Nminute sessions for the whole group. The lecturer presentsthekeyconceptsincostaccountingandexplainsthecorrectprocedures to follow in order to solve problems. Students are expected to review the next session s material in advance and intervene during class debates and problem solvingactivities. Seminarsessions:theselast90Nminutes.Theobjectiveofseminarsessionsis toconsolidatestudents knowledgeandtoputitintopracticebymeansoftheir activeparticipation. Universitat Pompeu Fabra 10

11 a.' Thefirstpartoftheseminarsisdedicatedtopresentingthecorrectsolution totheexerciseorcasestudypreviouslyassignedtothesession.thisisdone jointly with answering any doubts that may have appeared during the students individualworkorfromtheplenarysessions. b.' Duringthesecondpartofthesession,incaseofhavingsufficienttime,the studentswillsolveanexercisechosenadhocbytheseminarprofessor. CONSULTATIONANDSTUDYSESSIONS Consultation tutorials: students need to contact the designated lecturer by orchecktheaulaglobalfortutorialtimes. Individualwork:thiscomprisespersonalstudytimetoassimilatetheconcepts andprocedurescoveredduringlectures.theaimofindividualworkistoprepare forpracticalworkandreports,andtostudyforthefinalexam. Groupwork:timespentworkingingroupstopreparepracticalsandreports. Universitat Pompeu Fabra 11

12 7.# Activities#planning# PLENARYSESSIONS SEMINARS Week1 Week2 Topic1.Introduction.CostClassifications TIMEOUTSIDETHECLASSROM(APPROX. 4Individualwork:2hours Topic2.CostingMethodsI:PartialCosting 4Individualwork:2hours Week3 Week4 Week5 Topic3.BreakevenPointandCost4Volume4Profit Analysis Topic3.BreakevenPointandCost4Volume4Profit Analysis Topic4.CostingMethodsII:Fullcosting PartialCostingandCost4 Volume4ProfitAnalysis 4Correctionofthefirst practical Cost4Volume4ProfitAnalysis andfullcosting 4Correctionofthesecond practical 4Individualwork:2hours 4Preparationforthefirstpractical:2hours 4Individualwork:2hours 4Preparationforthesecondpractical:2hours 4Individualwork:2hours 4Preparationforthethirdpractical:2hours Week6 Week7 Topic4.CostingMethodsII:Fullcosting Topic5.CostingMethodsIII:ActivityBased Costing(ABC FullCosting 4Correctionofthethird practical ABC 4Correctionofthefourth practical 4Individualwork:2hours 4Preparationforthefourthpractical:2hours 4Individualwork:2hours 4Preparationforthefifthpractical:2hours Universitat Pompeu Fabra 12

13 PLENARYSESSIONS SEMINARS Week8 TIMEOUTSIDETHECLASSROM(APPROX. Topic6.StandardCostingandVarianceAnalysis. 4Individualwork:2hours 4Preparationforthesixthpractical:2hours Week9 Topic6.StandardCostingandVarianceAnalysis. Topic7.CostAccountingandtheDecision4 MakingProcess StandardCostingandVariance Analysis 4Correctionofthefifth practical 4Individualwork:2hours Week 10 Topic7.CostAccountingandtheDecision4 MakingProcess and/or Reportpresentation Report presentation 4Individualandgroupwork:648hours Universitat Pompeu Fabra 13