Portland Community College | Portland, Oregon

Analysis-type instruction is utilized throughout the course in introducing students to the fundamentals of cost accounting. This course is a requirements for the two-year Associate of Applied Science degree in Accounting.
The lecture time is used to provide the student with the basic tools to analyze costs and prepare financial statements for a manufacturing firm. Discussion on topics presented, visual aids, and related problems provide the opportunity to develop insight and experience in applying cost accounting concepts.

Upon successful completion of BA 215, the student will be able to:
 

1. Demonstrate an understanding of the differences between job-order costing and process costing.
2. Demonstrate knowledge of the tools to make management decisions using relevant costs and capital budgeting techniques
3. Explain how an organization develops their master budget
4. Demonstrate knowledge of standard costs and analysis of variances

At the beginning of the course, the instructor will detail methods used to evaluate student progress and the criteria for assigning a course grade.
Assessment methods may include the following:
 

1. Objective examinations such as multiple choice, matching, short answer, etc.
2. Exercise and problem test items
3. Problem assignments which demonstrate the application of appropriate accounting procedures.

Assessment choices may also include:
 

1. Attendance and participation in class activities
2. Any combination of other methods, including quizzes, group activities, presentations, practice sets, oral presentations, case studies or research assignment.

COURSE CONTENT: THEMES, ISSUES, CONCEPTS
 

1. Accounting for materials
2. Accounting for labor
3. Accounting for manufacturing overhead
4. Job-order costing
5. Process costing
6. Accounting for spoiled units, units lost, units gained in production
7. Budgeting
8. Standard costs and variance analysis
9. Cost-volume-profit analysis
10. Relevant costs for decision making
11. Time value of money
12. Capital budgeting
13. Critical Thinking
14. Effective written and oral communications
15. Ethical conduct

COMPETENCIES AND SKILLS
 

1. Identify and describe the basic cost concepts, and understand the manufacturing environment.
2. Demonstrate job-order costing, including the accounting for the purchase of materials, issuing materials into production, accounting for labor, accounting for factory overhead, and applying overhead to production.
3. Demonstrate the accounting for scrap, spoiled, and defective units.
4. Explain process cost accounting, including weighted average costing of work in process, FIFO costing of work in process, and accounting for units lost or increased in production.
5. Describe the various accounting methods for joint products and by-products.
6. Demonstrate the analysis of cost behavior by preparing scattergraph, using high-low method, and performing a least-squares analysis. Identify the difference between absorption costing and direct costing.
7. Demonstrate the essentials of budgeting, including the use of standard costs and actual costs through variance analysis.
8. Demonstrate the ability to make decisions using relevant costs. Identify the basic concepts behind capital budgeting including the tools for analysis.