DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF HARIPUR
Subject Name : COST ACCOUNTING
Semester : BBS 3rd & BBA V A&B,C Semester
A. Course Objectives
To understand how basic cost concepts are applied to develop costing systems that will
determine the cost of a company’s products or services because accurate cost data is
an essential prerequisite for proper managerial decision-making
To understand and apply management accounting concepts and techniques in order to
make wise choices between competing alternatives. This requires the ability to extract
relevant information from accounting records, reports or statements, and to properly use
this information
To understand basic concepts of management control systems and to utilize these
concepts in evaluating the performance of managers, products, or economic units
B. Course Contents
1. Introduction, Organization and overview of the course
2. An introduction to cost terms and purposes: nature, concepts and classification of
cost
3. cost of goods sold; Cost of goods manufactured
4. Product cost accumulation systems
5. Costing and control of material
6. Costing and control of labour
7. Costing and control of factory over head
8. Job Order Costing System
9. Process Costing
10. Joint product and by-product costing
11. Break-even analysis and cost- volume- profit analysis
DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF HARIPUR
COURSE
CONTENT
Week 01
Introduction, Organization and overview of the course
Week 02
Financial Statements The bases for planning and control
Week 03
Costs: Concepts, Uses and Classification
Week 04
cost of goods sold; Cost of goods manufactured,
Job Order Costing, Process Costing:
Week 05-08
Job Order Costing System, Process Costing
Planning and Control of Factory Overhead.
Week 09
Costing and control of material, Costing and control of labour
Week 10
Costing and control of factory over head
Planning and Control of Materials.
Week 11-12
Joint product and by-product costing
Planning and Control of Labor.
Week 13
Break-even analysis
Week 14-15
cost- volume- profit analysis
Week 16
Project/ Presentations
TEXT BOOKS:
Books
Recommended
(Latest Editions)
1. Matz Usry latest Edition, Cost Accounting: Planning and Control
th
2. Matz, Hammer Usry (1985) 9 edition Cost Accounting South-western
Publishing Co
3. Garrison H. Ray, Noreen W. Eric (2004) 12th edition Managerial Accounting,
Irwin
DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF HARIPUR
WEEK: 1 Lecture: 1, 2, And 3 Credit Hrs: 3
CHAPTER: 1 Introduction, Organization and overview of the course
This chapter explains why managerial accounting is important to
The future careers of all business students. It begins by answering three questions:
(1) What is managerial accounting?
(2) Why does managerial accounting Matter to your career? And
(3) what skills do managers need to succeed?
It concludes by discussing two topics important to all managers—the role of ethics in
Business and corporate social responsibility.
WEEK: 2 & 3 CHAPTER: 2 Lecture: 4, 5, 6,7,8,9 Credit Hrs: 06
Costs: Concepts, Uses and Classification & Financial Statements The bases for
planning and control
LEARNING OBJECTIVES
LO1 Identify and give examples of each of the three basic manufacturing cost categories.
LO2 Distinguish between product costs and period costs and give examples of each.
LO3 Understand cost behavior patterns including variable costs, fixed costs, and mixed costs.
LO4 Prepare income statements for a merchandising company using the traditional and
contribution formats.
LO5 Understand the differences between direct and indirect costs.
LO6 Understand cost classifications used in making decisions: differential costs, opportunity
costs, and sunk costs.
LO7 cost of goods sold; Cost of goods manufactured,
Assignment: 2 Questions from exercise
Instructional Material/ICTs
White Board, PPT slides on Projector, Lecture Notes.
DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF HARIPUR
WEEK: 4, 5, 6 CHAPTER: 3 Job Order Costing System
Lecture: 10, 11, 12, 13, 14, 15, 16, 17, 18,
LEARNING OBJECTIVES
After studying Chapter 3, you should be able to:
LO1 Compute a predetermined overhead rate.
LO2 Apply overhead cost to jobs using a predetermined overhead rate.
LO3 Compute the total cost and average cost per unit of a job.
LO4 Understand the flow of costs in a job-order costing system and prepare appropriate journal
entries to record costs.
LO5 Use T-accounts to show the flow of costs in a job-order costing system.
LO6 Prepare schedules of cost of goods manufactured and cost of goods sold and an income
statement.
LO7 Compute under applied or over applied overhead cost and prepares the journal entry to
close the balance in Manufacturing Overhead to the appropriate accounts.
LO8 Understand the implications of basing the predetermined overhead rate on activity at
capacity rather than on estimated activity for the period.
LO9 properly account for labor costs associated with idle time, overtime, and fringe benefits.
Assignment: 2 Questions from exercise
Instructional Material/ICTs
White Board, PPT slides on Projector, Lecture Notes.
DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF HARIPUR
WEEK: 7 , 8 & 9 CHAPTER: 4 Process Costing System
Lecture: 19, 20, 21, 22, 23, 24, 25, 26, 27
LEARNING OBJECTIVES
After studying Chapter 4, you should be able to:
LO1 Record the flow of materials, labor, and overhead through a process costing system.
LO2 Compute the equivalent units of production using the weighted average method.
LO3 Compute the cost per equivalent unit using the weighted-average method.
LO4 Assign costs to units using the weighted-average method.
LO5 Prepare a cost reconciliation report.
LO6 Compute the equivalent units of production using the FIFO method.
LO7 Compute the cost per equivalent unit using the FIFO method.
LO8 Assign costs to units using the FIFO method.
LO9 Prepare a cost reconciliation report using the FIFO method.
LO10 Allocate service department costs to operating departments using the direct method.
Assignment: 2 Questions from exercise
Instructional Material/ICTs
White Board, PPT slides on Projector, Lecture Notes.
WEEK: 10 & 11
CHAPTER: 4 Standard Costs and Variances Managing Materials and Labor
DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF HARIPUR
Lecture: 28, 29, 30, 31, 32, 33,
ILEARNING OBJECTIVES
After studying Chapter 10, you should be able to:
LO1 Compute the direct materials quantity and price variances and explain their significance.
LO2 Compute the direct labor efficiency and rate variances and explain their significance.
LO3 Compute the variable manufacturing overhead efficiency and rate variances and explain
their significance.
Assignment: 2 Questions from exercise
Instructional Material/ICTs
White Board, PPT slides on Projector, Lecture Notes.
WEEK: 12, 13 & 14
CHAPTER: Cost-Volume-Profit Relationships
DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF HARIPUR
Learning Objectives
After studying Chapter 6, you should be able to:
LO1 Explain how changes in activity affect contribution margin and net operating income.
LO2 Prepare and interpret a cost-volume-profit (CVP) graph.
LO3 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and
net operating income resulting from changes in sales volume.
LO4 Show the effects on contribution margin of changes in variable costs, fixed costs, selling
price, and volume.
LO5 Compute the break-even point in unit sales and sales dollars.
LO6 Determine the level of sales needed to achieve a desired target profit.
LO7 Compute the margin of safety and explain its significance.
LO8 Compute the degree of operating leverage at a particular level of sales and explain how it
can be used to predict changes in net operating income.
LO9 Compute the break-even point for a multiproduct company and explain the effects of
shifts in the sales mix on contribution margin and the break-even point.
Assignment: 2 Questions from exercise
Instructional Material/ICTs
White Board, PPT slides on Projector, Lecture Notes.
