BUS 205 - Cost Accounting
Nature and purpose of Cost Accounting and Cost Management. Examine job-order, process, operation, and activity-based costing environments and accounting systems. Accounting for the allocation of manufacturing overhead, common costs, and joint costs. Comparison of absorption, variable, and throughput costing methods. Constructing budgets, emphasizing the flexible budgeting system, and the "analysis of variances" methods.
Prerequisite: BUS 210 Managerial Accounting or BUS 101 Accounting II
4 Class Hours
Learning Outcomes of the Course:
Upon successful completion of this course the student will be able to:
1. Demonstrate the major concepts of cost accounting and cost management.
2. Demonstrate each of the following concepts, do the basic calculations required to process the information associated with each topic, and utilize the results of that analysis to make effective business decisions:
a. Inventory planning and control.
b. Job costing systems.
c. Process costing systems.
d. Operations costing systems.
e. Activity-based costing.
f. Joint-product costs and allocation systems.
g. Standard costing systems.
h. Flexible budgets.
i. Allocating service department costs.
3. Demonstrate critical thinking skills in performing the calculations, analyzing the results, and making interpretations based upon those results.
4. Demonstrate mathematical skills specific to business applications by using algebra, percents, ratios, special functions, and statistical procedures to analyze the information included in the topics listed above.
5. Demonstrate their ability to use calculators and computers to solve business applications. Students will be able to use Excel or Lotus software to track inventory costs and to allocate costs.
6. Design their own spreadsheet using Excel or Lotus for at least two of the topics. This will include formatting, labels, and formulas. (This can be done for Process costing, Standard costing, Flexible budgeting, or any of the cost allocation procedures.)
7. Demonstrate cost accounting and cost management from a global perspective which will include topics of international implications. (In today's world many corporations are multinational and it is absolutely imperative students can function in a global business environment).
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