SILLIMAN UNIVERSITY

DUMAGUETE CITY

COLLEGE OF BUSINESS ADMINISTRATION

ACCOUNTANCY DEPARTMENT

COURSE SYLLABUS FOR

BSA 14C
(Cost Accounting and Control)
2nd Semester, SY 2019-2020

CLASS DAYS, CLASS TIME, ROOM:

WEDNESDAY & FRIDAY – BSA 14C-A 7:00 - 10:00 AM BA 309
BSA 14C-B 8:30 - 10:00 AM BA 204
BSA 14C-C 7:00 - 10:00 AM BA 203
LECTURERS/FACILITATORS:
ASST. PROF. NASSER C. ACURAM, CPA, MBA
DR. LOREN ANN C. LACHICA, CPA, MBA, DBM, CFMP
ASST. PROF. BETTY JANE Y. MARTINEZ, CPA, MBA, CFMP
PLACEMENT : Second Semester
PRE-REQUISITE : ABM 11C & 13C
TOTAL HOURS : 104 hours (6 hours a week)
TOTAL CREDITS : 6 units
Prepared by:

ASST. PROF. BETTY JANE Y. MARTINEZ, CPA, MBA, CFMP Date: _______________

Reviewed by:

ASST. PROF. FLORENDA A. CASERES, CPA, MBA, CFMP Date: ________________

Chairperson, Accountancy Department

Approved by:

DR. GLORIA G. FUTALAN, LLB, PhD. Date: _______________

1

Dean, College of Business Administration

Page
SILLIMAN UNIVERSITY VISION STATEMENT
A leading Christian Institution committed to total human development for the well-being of society
and environment.

SILLIMAN UNIVERSITY MISSION STATEMENT

In this regard, the University will:
1. Infuse into the academic learning the Christian faith anchored on the gospel of Jesus Christ; provide an
environment where Christian fellowship and relationship can be nurtured and promoted.
2. Provide opportunities for growth and excellence in every dimension of the University life in order to
strengthen character, competence and faith.
3. Instill in all members of the University community an enlightened social consciousness and a deep sense
of justice and compassion.
4. Promote unity among peoples and contribute to national development.

GOALS AND OBJECTIVES OF THE COLLEGE OF BUSINESS ADMINISTRATION

The College of Business Administration aims to inculcate in the students, the philosophy of service to
others, nurtured by the ideals of the Christian faith as it prepares them for responsible leadership in
agriculture, commerce, industry and government.

GOALS AND OBJECTIVES OF THE ACCOUNTANCY DEPARTMENT

The B.S. Accountancy program is designed to prepare the students to become competent and
qualified accounting practitioners. Technical competence, sound judgment, independence in metal attitude,
honor and integrity are strong emphasized in developing a true Christian Certified Public Accountant.

COURSE DESCRIPTION
This course covers cost accounting theory and practice. Among the major topics included, for service
entities but more generally for manufacturing companies, are: concepts and objectives; cost and information
systems; accumulation procedures for job order and process costing methods; quality costs; by-products and
joint products; planning and control of materials, labor, and factory overhead costs; just in time and backflush
costing; nonfinancial performance measures; activity-based costing and management; budgeting and
standard costs, including variances; analysis of costs and profits; and evaluations of capital expenditures,
among others.

OBJECTIVES
To provide students with the fundamentals of cost accounting, the usage of accounting information
in planning and controlling business systems and in supporting a variety of management decisions, including
strategic decisions that position the firm to compete better in the current globalized economy, within the
bounds of ethical practices.

COURSE LEARNING OUTCOMES:

Upon completion of the course, the students will be able to:
A. Cognitive
1. Identify the different costs, cost concepts and objectives for determining product costs in
manufacturing entities, as well as for non-manufacturing companies.
2. Explain the difference between job order and process costing methods.
3. Explain joint product and by product costs
4. Identify product costs under the traditional costing and activity-based costing methods
5. Explain the quality costs
6. Prepare various budgets involved in the master budget plan, including operational, financial and
capital expenditures.
7. Explain variances involved in product costing
B. Psychomotor
1. Compute product costs, using the cost components – materials, labor and overhead.
2. Compute for product/service costs under the job order and process costing methods.
3. Compute for joint product and by product costs
4. Compute for product costs, under the traditional costing and activity-based costing methods
5. Calculate the quality costs
2

6. Determine the various budgets involved in the master budget plan, including operational, financial
Page
 and capital expenditures.
7. Calculate variances.
C. Affective
1. Conform with modern manufacturing practices.

TEXTBOOK
Fundamentals of Cost Accounting, 5th edition, International Edition 2017. William N. Lanen,
Shannon W. Anderson, and Michael W. Maher, 2017. McGraw-Hill Education, New York, USA
REFERENCES
THE HOLY BIBLE
Cost Accounting, 2nd ed., Raiborn, Cecily A. and Kinney, Michael R., 2016. 7th Philippine Reprint,
Cengage Learning Asia Pte Ltd., Singapore
Principles of Cost Accounting, 17th ed. 2016. Vanderbeck, Edward J. and Maria R. Mitchell. Cengage
Learning, Boston, MA, USA.
Managerial Accounting, 6th edition, 2017. Maryanne M. Mowen, Don R. Hansen and Dan L. Heitger.
Cengage Learning Asia Pte Ltd, Singapore
Accountants’ Journal, Strategic Finance, Newsweek, and The Times – for benchmark practices of
businesses and business professionals
METHODOLOGY
Lecture, discussion, reports, problem solving,

BASES FOR EVALUATION

1. Quizzes, chapter exams, preliminary, midterm and final examinations
Type of exams
a. theory – true or false, identification, enumeration, multiple-choice, discussion, etc
b. problem solving – short, long and comprehensive problems
2. Class participation and involvement
Assignment/homework, board work, group work, seven attendance (7) absences allowed for the entire
semester)

GRADING SYSTEM
Midterm grade
Average of chapter exams, quizzes & assignments until midterm 50.00%
Midterm exam (chapters until midterm week) 50.00
Total 100.00%
Final grade
Average of chapter exams, quizzes & assignments after midterm 33 1/3 %
Midterm grade 33 1/3 %
Final exam (all chapters) 33 1/3 %
Total 100.00%
NOTE 1: the total of all quizzes & assignments is considered 1 chapter exam.
NOTE 2: the passing grade for accountancy students in all accountancy subjects is 2.0, which is equivalent to
67% of the highest possible score (in all requirements). A student is allowed to repeat the subject
only once if the resulting grade is below 2.0.

COURSE SUMMARY
CONTENTS TOPICS COVERED HOURS
Orientation and course introduction 1.5
1. Cost Accounting: Information for Decision Making 4
2. Cost Concepts and Behavior 6
3. Fundamentals of Cost-Volume-Profit Analysis 6
4. Fundamentals of Cost Analysis for Decision Making 6
5. Cost Estimation 6
6. Fundamentals of Product and Service Costing 6
7. Job Costing 6
8. Process Costing 6
9. Activity-Based Costing 6
3

10. Fundamentals of Cost Management 6

Page
11. Service Department and Joint Costs Allocation 6
12. Fundamentals of Management Control Systems 4
13. Planning and Budgeting 6
14. Business Unit Performance Measurement 6
15. Transfer Pricing 5
16. Fundamentals of Variance Analysis 5.5
17. Additional Topics in Variance Analysis 5
18. Performance Measurement to Support Business Strategy 4
MIDTERM AND FINAL EXAMINATIONS 4
TOTAL 104
NOTE: SCHEDULE INCLUDES 2-HOUR EXAMS

4
Page
DETAILED COURSE OUTLINE
Hours Topics
Classroom policies and introduction
1
to the course
4 Chapter 1. Cost Accounting: Information for Decision Making
Value Creation in Organization
Accounting Systems and Cost
Accounting Systems
Cost Data for Managerial Decisions
Trends in Cost Accounting throughout
the Value Chain
Ethical issues for Accountants
6 Chapter 2 Cost Concepts and Behavior
What is a Cost and its Presentation in Explain the basic concept of ‘cost” and how it is presented in financial
Financial Statements?
Cost Allocation and Cost Flows
Cost Behavior
Components of Product Costs
6 Chapter 3. Fundamentals of Cost-Volume-Profit Analysis
Cost- Volume-Profit Analysis
Extensions of the CVP Model
6 Chapter 4. Fundamentals of Cost Analysis for Decision Making
Differential Analysis
Legal Issues Relating to Costs and Sales Understand how to apply differential analysis and to use different
Prices
Learning Outcomes Strategies/Activities Assessment
Identify and comply with policies Distribution and discussion of syllabus
Explain the fundamentals of the course and course
Describe the way managers use accounting information to create value in
organizations
Lecture/PowerPoint presentation Quiz
Distinguish between the uses and users of cost accounting and financial
accounting information
Explain how cost accounting information is used for decision making and
Application of concepts
performance evaluation. Chapter exam will
be given after
Identify current trends in cost accounting. Solve and discuss Problem 1-50
chapter 3
Understand ethical issues faced by accountants and ways to deal with discussion
ethical problems faced in future careers.
Lecture/PowerPoint presentation Quiz
statements
Explain the process of cost allocations. Application of concepts Chapter exam will
Define basic cost behaviors, including fixed, variable, semivariable and be given after
step costs Solve all exercises and chapter 3
Understand how material, labor and overhead costs are added to a Problems 2-55, 56, 59, 62 discussion
product at each stage of the production process.
Identify the components of a product’s cost.
Use cost-volume-profit (CVP) analysis to analyze decisions.
Lecture/PowerPoint presentation Quiz
Understand the effect of cost structure on decisions.
Incorporate taxes, multiple products and alternative cost structures into
Application of concepts Chapters 1, 2, and 3
the CVP analyses.
exam.
Solve all exercises and
Understand the assumptions and limitations of CVP analysis
Problems 45, 48, 50, 56, 62
Use differential analysis to analyze decisions. Lecture/PowerPoint presentation Quiz
5
Chapter exam will
Page
Application of concepts
approaches to pricing decisions. be given after
 Use of Differential Analysis for
Production Decisions
The Theory of Constraints
6 Chapter 5. Cost Estimation
Basic Cost Behavior Patterns
Methods used to Estimate Cost
Behavior
Learning Phenomenon
6 Chapter 6. Fundamentals of Product and Service Costing
Cost Management Systems
Costing in a Single Product, Continuous Explain how a basic product costing system works, and how overhead cost
Process Industry
Costing in a Multiple Product, Discrete
Process Industry
Multiple Allocation Bases and Two- Describe the three basic types of product costing systems-job order,
Stage Systems
6 Chapter 7. Job Costing
What is a Job?
Computing the Cost of a Job
Ethical Issues and Job Costing
Managing Projects
6 Chapter 8. Process Costing
Determining Equivalent Units
Using Product Costing in a Process
Industry (Weighted Average Process
Costing)
The Production Cost Report
Assigning Costs Using FIFO Process
Costing
Computing Product Costs
Operation Costing
6 Chapter 9. Activity-Based Costing
Reported Product Costs and Decision
Making
Solve all exercises & present Exercises chapter 6
42, 51 and discussion
Understand the theory of constraints. Problems 53, 54, 57, 59, 61, 63,
Estimate costs using various cost estimation methods Lecture/PowerPoint presentation Quiz
Interpret the results of regression output and identify potential problems Chapter exam will
Perform regression analysis Application of concepts be given after
Understand the mathematical relationship describing the learning Solve all exercises and chapter 6
phenomenon. Problems 53, 61, 63 discussion
Explain the fundamental themes underlying the design of cost systems. Lecture/PowerPoint presentation Quiz
is allocated. Application of concepts
Chapters 4, 5 and 6
Explain the operation of a two-stage allocation system for product costing.
exam
Solve all exercises and
Problems 50, 52, 53
process and operations.
Explain a job, a job shop and a project. Lecture/PowerPoint presentation Quiz
Assign costs in the job cost system, including overhead. Application of concepts Chapter exam will
Understand the ethical issues in job costing be given after
Solve all exercises and
chapter 8
Problems 44, 45, 50, 51
discussion
Explain the concept and purpose of equivalent units. Lecture/PowerPoint presentation Quiz
Assign costs to products using the five-step process with weighted-
average (WA) and first-in, first-out (FIFO) costing methods.
Application of concepts
Chapters 7 & 8
Prepare and analyze a production cost report.
exam
Compare and contrast operation costing with job costing and process Solve all exercises and
costing. Problems 48, 49, 51, 52, 59
6
Understand the potential effects of using reported product costs for Quiz
Lecture/PowerPoint presentation
Page
decision-making.
 Two-Stage Cost Allocation Explain how a two-stage product costing system works, Application of concepts Chapter exam will
Activity-Based Costing and Illustration
Compare and contrast plantwide and department allocation methods. be given after
Solve all exercises & present Exercises
Compute product costs using activity-based costing (ABC); and compare chapter 10
Cost Hierarchies 32, 37, 42, 46
the results with traditional department costing methods. discussion
Problems 49, 51, 60
Demonstrate the flow of costs using ABC and its application to
Time-Driven Activity-Based Costing
administrative costs.
6 Chapter 10. Fundamentals of Cost Management
Using Activity-Based Cost Describe how activity-based cost management can be used to improve
Lecture/PowerPoint presentation Quiz
Management to Add Value operations.
Managing the Cost of Customers and
Use the hierarchy of cost to manage costs.
Suppliers Application of concepts
Chapters 9 & 10
Describe how the actions of customers and suppliers affect a firm’s costs
Managing the Cost of Capacity Solve all exercises and exam
and use ABC methods to assess such costs.
Problems 55, 56, 57, 59, 60, 61, 65
Managing the Cost of Quality Manage capacity and quality costs
2 MIDTERM EXAM CHAPTERS 1-10
6 Chapter 11. Service Department and Joint Costs Allocation
Service Department Cost Allocation
Explain why service costs are allocated Lecture/PowerPoint presentation Quiz
and Methods Used
Allocate service department costs using the direct, step and reciprocal
Allocation of Joint Costs and Methods Chapter exam will
methods. Explain why joint costs are allocated. Allocate joint costs using Application of concepts
Used be given after
the net realizable and physical quantities methods.
chapter 12
Deciding Whether to Sell Goods Now Solve all exercises & present Exercise
Explain how cost data are used in the sell-or-process-further decision. discussion
or Process Them Further 45
Problems 49, 58, 61, 62, 67
Deciding What to Do with By-Products Account for by-products.
4 Chapter 12 - Fundamentals of Management Control Systems
Why a Management Control System
Explain the role and basic framework of a management control system, Lecture/PowerPoint presentation Quiz
(MCS)?
Decentralized Organizations Identify the advantages and disadvantages of decentralization. Application of concepts
Framework for Evaluating MCS Chapters 11 & 12
Explain the relationship between organization structure and responsibility exam
Responsibility Accounting Solve all exercises and
centers.
Problems 43, 45
Understand how managers evaluate performance and the use of
Performance Evaluation Systems
performance evaluation systems.

7
Internal Controls to Protect Assets and
Understand how internal controls can help protect assets.

Page
Provide Quality Information
6 Chapter 13 - Planning and Budgeting
Overall Plan Understand the role of budgets in overall organization plans. Lecture/PowerPoint presentation Quiz
Human Element in Budgeting Understand the importance of people in the budgeting process. Application of concepts
Developing the Master Budget
Estimate sales, production, costs, cash flows and develop budgeted Chapter 13 exam
Budgeting in Retail and Wholesale Solve all exercises and
financial statements.
Organizations; Service Organizations Problems 45 and 61 (Chapter 8, Cost
Ethical Problems in Budgeting Explain why ethical issues arise in budgeting Accounting, Raiborn & Kinney).
Budgeting under Uncertainty Explain how to use sensitivity analysis to budget under uncertainty
6 Chapter 14. Business Unit Performance Measurement
Divisional Performance Measurement Evaluate divisional accounting income as a performance measure. Lecture/PowerPoint presentation Quiz
Accounting Income Interpret and use return on investment, residual income and economic Application of concepts Chapter exam will
Return on Investment value added. be given after
Residual Income Measures Solve all exercises and chapter 15
Economic Value Added Problems 40, 41, 42, 43, 44, 45, 46 discussion
5 Chapter 15. Transfer Pricing
What is Transfer Pricing and its
Explain the basic issues associated with transfer pricing Lecture/PowerPoint presentation Quiz
Importance?
Determining the Optimal Transfer Explain the general transfer pricing rules and understand the underling
Application of concepts Chapters 14 & 15
Price basis for them.
exam
Top-Management Intervention in Identify the behavioral issues and incentive effects of negotiated, cost-
Transfer Pricing based and market-based transfer prices. Solve all exercises and
Negotiating the Transfer Price Explain the economic consequences of multinational transfer prices. Problems 34, 35, 38, 42, 44
Multinational Transfer Pricing Describe the role of transfer prices in segment reporting.
Segment Reporting
5.5 Chapter 16. Fundamentals of Variance Analysis
Using Budgets for Performance
Use budgets for performance evaluation. Lecture/PowerPoint presentation Quiz
Evaluation
Profit Variance Application of concepts
Flexible Budgeting Develop and use flexible budgets. Chapter exam will
Solve all exercises & present Exercise
Performance Measurement and Compute and interpret the sales activity, profit variance, variable cost and be given after
43
Control in a Cost Center fixed cost variances. chapter 18
Problems 46, 50, 51, 52, 64
discussion
Variable Cost and Fixed Cost Variances Understand how to record costs in a standard costing system.

8
5 Chapter 17. Additional Topics in Variance Analysis

Page
Profit Variance Analysis Explain how to prorate variances to inventories and cost of goods sold. Lecture/PowerPoint presentation Quiz
 Market Share Variance and Industry
Use market share variances to evaluate marketing performance. Application of concepts Chapter exam will
Volume Variance
be given after
Sales Activity Variances
chapter 18
Evaluate production performance using production mix and yield Solve all exercises and Problems 42,
Production Mix and Yield Variances discussion
variances. 43, 44, 45, 46
Variance Analysis in Apply the variance analysis to nonmanufacturing costs.
Nonmanufacturing Settings Determine which variances to investigate
4 Chapter 18 Performance Measurement to Support Business Strategy
Explain why management accountants should know the business strategy
Strategy and Performance Lecture/PowerPoint presentation Quiz
of their organization.
Foundation of a Successful Business
Application of concepts
Strategy
Understand why companies use nonfinancial performance measures and Chapters 16, 17 &
Business Model
the different performance measures across organization levels. 1& exam
Multiple Measures or a Single
Solve all exercises and present
Measure of Performance
Exercise 37. 39
Performance Measurement for Understand the balanced scorecard method and how benchmarking can
Problems 42, 53
Control be used to support continuous improvement.
Nonfinancial Performance Measures
Explain why employee involvement is important in an effective
Employee Involvement
performance measurement system
2 FINAL EXAM CHAPTERS 1-18
108 TOTAL HRS.

9
Page
COURSE OUTLINE NO. OF HOURS
PART 1. OVERVIEW
Chapter 1. Cost Accounting: Information for Decision Making … … … … … ... … … … … … … ... … … ... 4
Learning objectives
After studying this chapter, the student will be able to:
1. Describe the way managers use accounting information to create value in organizations
2. Distinguish between the uses and users of cost accounting and financial accounting information.
3. Explain how cost accounting information is used for decision making and performance evaluation.
4. Identify current trends in cost accounting.
5. Understand ethical issues faced by accountants and ways to deal with ethical problems faced in
future careers.
Topics
Value Creation in Organization
Accounting Systems and Cost Accounting Systems
Cost Data for Managerial Decisions
Trends in Cost Accounting throughout the Value Chain
Ethical issues for Accountants
Assignment: Discuss Problem 50
Evaluation: Quiz, chapter exam will be given after chapter 3 discussion

Chapter 2 Cost Concepts and Behavior … … … … … … … … … … … ... … … … … … … ... … … … … … … ... 6

Learning objectives:
After studying this chapter, the student will be able to:
1. Explain the basic concept of ‘cost” and how it is presented in financial statements
2. Explain the process of cost allocations.
3. Understand how material, labor and overhead costs are added to a product at each stage of the
production process.
4. Define basic cost behaviors, including fixed, variable, semivariable and step costs.
5. Identify the components of a product’s cost.
Topics
What is a Cost and its Presentation in Financial Statements?
Cost Allocation and Cost Flows
Cost Behavior
Components of Product Costs
Assignment: Solve all exercises and Problems 55, 56, 59, 62
Evaluation: Quiz, chapter exam will be given after chapter 3 discussion

Chapter 3. Fundamentals of Cost-Volume-Profit Analysis … … … ... … … … … … … ... … … … … … … … … ..6

Learning objectives
After studying this chapter, the student will be able to:
1. Use cost-volume-profit (CVP) analysis to analyze decisions.
2. Understand the effect of cost structure on decisions.
3. Incorporate taxes, multiple products and alternative cost structures into the CVP analyses.
4. Understand the assumptions and limitations of CVP analysis
Topics
Cost- Volume-Profit Analysis
Extensions of the CVP Model
Assignment: Solve all exercises and Problems 45, 48, 50, 56, 62
Evaluation: Quiz, Chapters 1, 2, and 3 exam.

Chapter 4. Fundamentals of Cost Analysis for Decision Making … … … … ... … … … … … … ... … … … … …6

Learning objectives
After studying this chapter, the student will be able to answer the following questions:
1. Use differential analysis to analyze decisions.
2. Understand how to apply differential analysis and to use different approaches to pricing decisions.
3. Understand the theory of constraints.
10

Topics
Differential Analysis
Page

Legal Issues Relating to Costs and Sales Prices

 Use of Differential Analysis for Production Decisions
The Theory of Constraints
Assignment: Solve all exercises; present Exercises 42, 51 and Problems 53, 54, 57, 59, 61, 63,
Evaluation: Quiz, chapter exam will be given after chapter 6 discussion

Chapter 5. Cost Estimation … … … … … ... … … … … … … ... … … … … … … ... … … … … … … ... … … …. ... 6

Learning objectives:
After studying this chapter, the student will be able to:
1. Estimate costs using various cost estimation methods
2. Interpret the results of regression output and identify potential problems
3. Perform regression analysis
4. Understand the mathematical relationship describing the learning phenomenon.
Topics
Basic Cost Behavior Patterns
Methods used to Estimate Cost Behavior
Learning Phenomenon
Assignment: Solve all exercises and Problems 53, 61, 63
Evaluation: Quiz, chapter exam will be given after chapter 6 discussion

Chapter 6. Fundamentals of Product and Service Costing … … … … … … … … ... … … … … … … … … … … 6

Learning objectives
After studying this chapter, the student will be able to:
1. Explain the fundamental themes underlying the design of cost systems.
2. Explain how a basic product costing system works, and how overhead cost is allocated.
3. Explain the operation of a two-stage allocation system for product costing.
4. Describe the three basic types of product costing systems-job order, process and operations.
Topics
Cost Management Systems
Costing in a Single Product, Continuous Process Industry
Costing in a Multipole Product, Discrete Process Industry
Multiple Allocation Bases and Two-Stage Systems
Assignment: Solve all exercises and Problems 50, 52, 53
Evaluation: Quiz, Chapters 4, 5 and 6 exam

Chapter 7. Job Costing … … … … … … ... … … … … … … ... … … … … … … … … … … ... … … … … … … … ...6

Learning objectives
After studying this chapter, the student will be able to:
1. Explain a job, a job shop and a project.
2. Assign costs in the job cost system, including overhead.
3. Understand the ethical issues in job costing
Topics
What is a Job?
Computing the Cost of a Job
Ethical Issues and Job Costing
Managing Projects
Assignment: Solve all exercises and Problems 44, 45, 50, 51
Evaluation: Quiz, Quiz, chapter exam will be given after chapter 8 discussion

Chapter 8. Process Costing … … … … … … ... … … … … … … ... … … … … … … … … … … … … … … … … … 6

Learning Objectives:
After studying this chapter, the student will be able to:
1. Explain the concept and purpose of equivalent units.
2. Assign costs to products using the five-step process with weighted-average (WA) and first-in, first-
out (FIFO) costing methods.
3. Prepare and analyze a production cost report.
11

4. Compare and contrast operation costing with job costing and process costing.
Topics
Page

Determining Equivalent Units

 Using Product Costing in a Process Industry (Weighted Average Process Costing)
The Production Cost Report
Assigning Costs Using FIFO Process Costing
Computing Product Costs
Operation Costing
Assignment: Solve all exercises and Problems 48, 49, 51, 52, 59
Evaluation: Quiz, chapter 7 & 8 exam
Chapter 9. Activity-Based Costing … … … … … … ... … … … … … … ... … … … ... … … … … … … ... … … … …6
Learning objectives
After studying this chapter, the student will be able to:
1. Understand the potential effects of using reported product costs for decision-making.
2. Explain how a two-stage product costing system works,
3. Compare and contrast plantwide and department allocation methods.
4. Compute product costs using activity-based costing (ABC); and compare the results with traditional
department costing methods.
5. Demonstrate the flow of costs using ABC and its application to administrative costs.
Topics
Reported Product Costs and Decision Making
Two-Stage Cost Allocation
Activity-Based Costing and Illustration
Cost Hierarchies
Time-Driven Activity-Based Costing
Assignment: Solve all exercises; present Exercises 32, 37, 42, 46 Problems 49, 51, 60
Evaluation: Quiz, chapter exam will be given after chapter 10 discussion

Chapter 10. Fundamentals of Cost Management … … … … … … ... … … … … … … ... … … … … … … 6

Learning objectives
After studying this chapter, the student will be able to:
1. Describe how activity-based cost management can be used to improve operations.
2. Use the hierarchy of cost to manage costs.
3. Describe how the actions of customers and suppliers affect a firm’s costs and use ABC methods
to assess such costs.
4. Manage capacity and quality costs
Topics
Using Activity-Based Cost Management to Add Value
Managing the Cost of Customers and Suppliers
Managing the Cost of Capacity
Managing the Cost of Quality
Assignment: Solve all exercises and Problems 55, 56, 57, 59, 60, 61, 65
Evaluation: Quiz, chapters 9 & 10 exam

Chapter 11. Service Department and Joint Costs Allocation … … … … … ... … … … … .… … … ... … … … …. 6
Learning objectives
After studying this chapter, the student will be able to:
1. Explain why service costs are allocated
2. Allocate service department costs using the direct, step and reciprocal methods.
3. Explain why joint costs are allocated.
4. Allocate joint costs using the net realizable and physical quantities methods.
5. Explain how cost data are used in the sell-or-process-further decision.
6. Account for by-products.
Topics
Service Department Cost Allocation and Methods Used
Allocation of Joint Costs and Methods Used
Deciding Whether to Sell Goods Now or Process Them Further
Deciding What to Do with By-Products
Assignment: Solve all exercises and present Exercise 45, Problems 49, 58, 61, 62, 67
Evaluation: Quiz, chapter exam will be given after chapter 12 discussion
12

Chapter 12 - Fundamentals of Management Control Systems … … … … … … ... … … … … … … … … … … … 4

Page

Learning objectives
After studying this chapter, the student will be able to:
1. Explain the role and basic framework of a management control system,
2. Identify the advantages and disadvantages of decentralization.
3. Explain the relationship between organization structure and responsibility centers.
4. Understand how managers evaluate performance and the use of performance evaluation systems.
5. Understand how internal controls can help protect assets.
Topics
Why a Management Control System (MCS)?
Decentralized Organizations
Framework for Evaluating MCS
Responsibility Accounting
Performance Evaluation Systems
Internal Controls to Protect Assets and Provide Quality Information
Assignment: Solve all exercises and Problems 43, 45
Evaluation: Quiz, chapters 11 & 12 exam

Chapter 13 - Planning and Budgeting … … … … … … ... … … … … … … … … … … … … … … … … ... … … … … 6

Learning objectives
After studying this chapter, the student will be able to:
1. Understand the role of budgets in overall organization plans.
2. Understand the importance of people in the budgeting process.
3. Estimate sales, production, costs, cash flows and develop budgeted financial statements.
4. Explain why ethical issues arise in budgeting
5. Explain how to use sensitivity analysis to budget under uncertainty.
Topics
Overall Plan
Human Element in Budgeting
Developing the Master Budget
Budgeting in Retail and Wholesale Organizations
Budgeting in Service Organizations
Ethical Problems in Budgeting
Budgeting under Uncertainty
Assignment: Solve all exercises and Problems 45 and 61 (Chapter 8, Cost Accounting, Raiborn & Kinney).
Evaluation: Quiz, chapter exam will be given after chapter 14 discussion.

Chapter 14. Business Unit Performance Measurement … … … … … … ... … … … … … … … … … … … … … 6

Learning objectives
After studying this chapter, the student will be able to:
1. Evaluate divisional accounting income as a performance measure.
2. Interpret and use return on investment, residual income and economic value added.
Topics
Divisional Performance Measurement
Accounting Income
Return on Investment
Residual Income Measures
Economic Value Added
Assignment: Solve all exercises and Problems 40, 41, 42, 43, 44, 45, 46
Evaluation: Quiz, chapters 13 & 14 exam.

Chapter 15. Transfer Pricing … … … … … … ... … … … … … … ... … … … … … … … … … … … … … … … … … 2

Learning Objectives:
After studying this chapter, the student will be able to:
1. Explain the basic issues associated with transfer pricing
2. Explain the general transfer pricing rules and understand the underling basis for them.
3. Identify the behavioral issues and incentive effects of negotiated, cost-based and market-based
transfer prices.
4. Explain the economic consequences of multinational transfer prices.
13

5. Describe the role of transfer prices in segment reporting.

Topics
Page

What is Transfer Pricing and its Importance?

 Determining the Optimal Transfer Price
Top-Management Intervention in Transfer Pricing
Negotiating the Transfer Price
Multinational Transfer Pricing
Segment Reporting
Assignment: Solve all exercises and Problems 34, 35, 38, 42, 44
Evaluation: Quiz, chapter exam will be given after chapter 16 discussion
Chapter 16. Fundamentals of Variance Analysis. … … … … … ... . … ... … ... … ... ... ... ... … … … … … … ... 6
Learning objectives
After studying this chapter, the student will be able to:
1. Use budgets for performance evaluation.
2. Develop and use flexible budgets.
3. Compute and interpret the sales activity, profit variance, variable cost and fixed cost variances.
4. Understand how to record costs in a standard costing system.
Topics
Using Budgets for Performance Evaluation
Profit Variance
Flexible Budgeting
Performance Measurement and Control in a Cost Center
Variable Cost and Fixed Cost Variances
Assignment: Solve all exercises and Problems 46, 50, 51, 52, 64
Evaluation: Quiz, chapters 15 & 16 exam

Chapter 17. Additional Topics in Variance Analysis … … … ... … … … … … … ... … … … … … … … … … … … .6

Learning objectives
After studying this chapter, the student will be able to:
1. Explain how to prorate variances to inventories and cost of goods sold.
2. Use market share variances to evaluate marketing performance.
3. Evaluate production performance using production mix and yield variances.
4. Apply the variance analysis to nonmanufacturing costs.
5. Determine which variances to investigate.
Topics
Profit Variance Analysis
Market Share Variance and Industry Volume Variance
Sales Activity Variances
Production Mix and Yield Variances
Variance Analysis in Nonmanufacturing Settings
Assignment: Solve all exercises and Problems 42, 43, 44, 45, 46
Evaluation: Quiz, chapter exam will be given after chapter 18 discussion

Chapter 18 Performance Measurement to Support Business Strategy … … … … ... … … … … … … … … 4

Learning objectives
After studying this chapter, the student will be able to:
1. Explain why management accountants should know the business strategy of their organization.
2. Understand why companies use nonfinancial performance measures and the different
performance measures across organization levels.
3. Understand the balanced scorecard method and how benchmarking can be used to support
continuous improvement.
4. Explain why employee involvement is important in an effective performance measurement system.
Topics
Strategy and Performance
Foundation of a Successful Business Strategy
Business Model
Multiple Measures or a Single Measure of Performance
Performance Measurement for Control
Nonfinancial Performance Measures
Employee Involvement
14

Assignment: Solve all exercises and present Exercises 37, 39 and problem 42, 54
Evaluation: Quiz, Chapters 17 & 1& exam
Page