SUFFOLK COUNTY COMMUNITY COLLEGE
COLLEGE-WIDE COURSE SYLLABUS

  I.        COURSE TITLE: Cost Accounting
  
 II.        CATALOG DESCRIPTION: 2004 – 2006
            Basic principles and procedures of cost accounting and cost control in a
            manufacturing organization through study of job order, process and standard
            cost procedures, budgeting, predetermined cost, variance and decision
            analysis. Prerequisite: AC12 or AC15.
            A-E-G/4 credit hrs.
 
III.       GOALS OF THE COURSE:
           To enhance the student’s knowledge of how cost accounting is used as a
           tool of management. To show students how to assist management by
           communicating cost information used in planning, decision-making and cost
           control. To teach students how to apply their cost knowledge in both a
           manufacturing and service environment.
 
 IV.      STUDENT LEARNING OUTCOMES:
           Upon successful completion of AC70 (Cost Accounting), students will:

            A.   Possess a better understanding of the basic cost accounting
                  assumptions underlying a manufacturing business.
            B.   Be conversant with the cost accounting system of job, process and
                  standard costing.
            C.   Be acquainted with the contemporary cost accounting issues and
                  techniques.
            D.   Be able to analyze complex cost accounting problems.
            E.   Be able to solve the type of cost problems which have previously
                  appeared on the Uniform CPA and CMA examinations.
 
  V.        SPECIAL INSTRUCTIONS/INFORMATION FOR THE TEACHER
              A.   Prerequisite to this course: AC12 or AC15.
              B.   Programs that require this course: A.A.S. Degree: Accounting
              C.   Courses which require this as a prerequisite or corequisite: None
              D.   External Jurisdiction: None
 
 VI.         MAJOR TOPICS REQUIRED (50 Hours)
              A.   INTRODUCTION TO COST TERMINOLOGY, COST CLASSIFICATIONS,
                    COST BEHAVIOR, COST FLOWS
                    Definitions of various cost terms, including fixed and variable costs.
                    Cost behavior of fixed and variable costs. Preparation of a Schedule of
                    Cost of Goods Manufactured and Sold. Preparation of Income
                    Statements using absorption and variable costing.
              B.   JOB ORDER AND PROCESS COST ACCUMULATION (11.5 HOURS)
                    Recognizing organizations that should use process costing and those
                    that should use job costing. Assigning costs to products using job order
                    costing. Application of overhead costs to products. Assigning process
                    costs to products using weighted-average costing. Assigning process
                    costs to products using first-in, first-out costing. Preparation of Cost of
                    Production Reports.
              C.   TOTAL QUALITY MANAGEMENT AND ACCOUNTING FOR QUALITY
                    COSTS.
                    Use of cost management tools, including flowcharts and cost-of-quality
                    reports.  Identifying, measuring and reporting costs of quality.
              D.   ACTIVITY BASED COST SYSTEMS
                    Estimating the cost of products using and activity-based costing system.
                    Comparing activity-based costing to the traditional costing system.
                    Application of activity-based costing to service and merchandising
                    companies. Activity-based management. Use of activity-based costing
                    for target costing.
              E.   STANDARD COST SYSTEMS AND VARIANCE ANALYSIS
                    (4.5HOURS)
                    Use of standard cost systems in the budgeting process. Analysis of the
                    material, labor and overhead variances between the standard cost and
                    the actual cost.
              F.   INVENTORY AND PRODUCTION MANAGEMENT TECHNIQUES,
                    INCLUDING ECONOMIC ORDER QUANTITY MODEL, ORDER POINT
                    AND SAFETY STOCK CALCULATIONS. JUST IN TIME INVENTORY
                    MANAGEMENT. (3HOURS)
              G.   EVALUATION OF STUDENT PERFORMANCE (5HOURS)
                    It is strongly suggested that there be at least 3, but no more than 4,
                    full period examinations. The examinations could include multiple choice
                    questions and essay questions. The essay questions could ask for
                    calculations and interpretation of those calculations in application to
                    making business decisions.