AL-KHWARIZMI INTERNATONAL COLLEGE

DEPARTMENT OF ACCOUNTNACY

SYLLABUS


Course Title: ACC 401
Description: Cost Accounting 1
Objective: This course covers accounting theory and practice. Students are expected to acquire a
broad understanding of the basic principles of cost accounting as well as the ability to
solve cost accounting problems specifically on job order costing; accounting for and
control of materials, labor, and overhead; special problems in material costing; cost
variance analysis; and just-in-time and back flush accounting.


A. Introduction to Cost Accounting
a. Definition of Cost Accounting
b. Relation to Financial and Management Accounting
c. Importance of Cost Accounting
B. Cost Terms, Concepts and Classification
a. General Cost Classification
b. Manufacturing and Nonmanufacturing Cost
c. Product Cost and Period Cost
d. Costing Methods
C. Accounting for Job Order Costing
a. Cost Flow
b. Journal entries
c. Cost of Goods Sold Statement
D. Accounting for and Control of Materials, Labor, and Overhead
a. Control Methods
b. Economic Order Quantity
c. Recording of Payroll
d. Predetermination of Overhead Application Rate
E. Special Problems in Material Costing
a. Accounting for Spoiled Materials
b. Accounting for Defective Materials
c. Accounting for Waste Materials
d. Accounting for Scrap Materials
F. Cost Variance Analysis
a. Materials Variance Analysis
b. Labor Variance Analysis
c. Overhead Variance Analysis
G. Just-in-Time and Back flush Accounting
a. Just-In-Time Accounting
b. Back flush Accounting