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DIPOLOG MEDICAL CENTER COLLEGE FOUNDATION

Sta. Filomena, Dipolog City

SCHOOL OF BUSINESS AND ACCOUNTANCY
SCOPE AND SEQUENCE

PHILOSOPHY OF DMC-CFI EDUCATION

Dipolog Medical Center College Foundation, Inc. maintains that full development of a person’s
potentials depends largely on the nature, level and suitability of stimuli and the challenges he encounter
in daily life. The role of DMCCFI as institution is such that it serves as a rich interactive environment
where the student is continually encouraged, motivated, and more importantly, challenged to produce
the optimal use of his innate and acquired skills.

SCHOOL VISION

Our vision is to be a leading educational institution, highly regarded for our commitment to
students; distinguished for excellence in instruction as responsive to the communities we serve.

SCHOOL MISSION

Guided by our vision, Dipolog Medical Center College Foundation will become a premier
educational institution through: quest for excellence, academic and professional competence, advance
in information technology, community involvement, working partnership, global perspective and over-
all learning experience.

GENERAL OBJECTIVES OF SCHOOL OF BUSINESS AND ACCOUNTANCY

The DMC College Foundation School of Business and Accountancy has the following objectives:
1. To mold all students to become computer literate, socially responsible, globally aware,
analytical, and reasonable decision-making individuals who are competent in interpersonal, oral
and written communication skills.
2. To produce graduates who are well-versed in the fundamental economic and business
principles, as well as the practical application of those principles in the simulated business
setting.
3. To design our educational programs in ways that prepares students or leadership roles in the
dynamic, domestic and global.
4. To deliver business professional who will be perceived not just business managers but leaders in
the society.
5. To constantly update the curricula of the different programs to prepare students to adapt to the
rapidly changing technology and to recognize diversity in the work place.
6. TO ensure that faculty members are responsible, committed and qualified in their respective
fields or profession.
7. To promote among the faculty members integrity, professionalism and compliance to the latest
trends, standards and developments in their chosen field of expertise.
8. To emphasize social responsibility as one of the business cores in nurturing well-rounded
business professionals of the future.
DIPOLOG MEDICAL CENTER COLLEGE FOUNDATION
Sta. Filomena, Dipolog City

COURSE CODE : ACCY 4A
COURSE TITLE : COST MANAGEMENT
CREDIT UNIT : 3 UNITS
LECTURE HOUR PER WEEK : 3 HOURS

I. COURSE DESCRIPTION
This course is designed to orient the students to the cost accounting and cost management
framework of business. Topics discussed are: process cost systems, accounting for joint and by-
product costs, standard costing and just-in-time and backflush costing.

II. COURSE OBJECTIVES
At the end of this course, students must be able to:
1. Comprehend concepts and procedures relating to process cost system;
2. Develop skills in journalizing and preparing manufacturing report, the cost of production
reports;
3. Develop knowledge in the calculation of departmental unit cost, cost transferred to
other departments and determining the effect of lost units on unit cost;
4. Solve problems in costing by-products and joint products;
5. Develop accuracy and fairness in costing for the benefit of both management and
customers;
6. Acquire the values of preciseness, accuracy and fairness in costing for the benefit of
both management and customers.
7. How to make income statement when the company uses standard costing system.
8. How to use just-in-time and backflush costing.

III. METHODOLOGY
Interactive discussions, lectures, oral recitation, board work, problem solving, pre-tests and
post-test and long examination.

IV. MEDIUM OF INSTRUCTION
English, Filipino and Cebuano are the medium of instruction for this course.

V. COURSE OUTLINE TIME FRAME
1. Orientation Week 1
1.1 Review of DMCCFI Philosophy of Education
1.2 Overview of the course description, citing significance
And integration in the context of DMCCFI Philosphy
Of education

2. Process Cost System Week 2
2.1 Nature of process and its Application
2.2 Comparison between Process Costing and Job order costing
2.3 The Concepts of equivalent units of production:
2.4 First-in-first-out (FIFO) Inventory Cost Method
2.5 Weighted Average Inventory Cost Method
2.6 Uniform Application of Production Costs
2.7 Uneven Application of Production Costs
DIPOLOG MEDICAL CENTER COLLEGE FOUNDATION
Sta. Filomena, Dipolog City

2.8 Cost of production report
2.9 Initial Processing Department
2.10 Subsequent processing Department
2.11 Product cost flow

1st Long Examination Week 3

3. Spoilage, Wastage, Evaporation Loss, Defective Units ad Scraps- Part 1 Week 3

3.1 Comparison between Normal and Abnormal Spoilage
3.2 Computation of the cost of spoilage:
3.3 Equivalent Units of Production
3.4 Cost of Spoilage (Lost Units) in Initial Department
3.5 Cost of Spoilage (Lost Units) in Subsequent Department
3.6 Methods of Allocating Cost of Spoilage

PRELIMINARY EXAMINATION Week 4

4. Spoilage, Wastage, Evaporation Loss, Defective Units ad Scraps- Part 2 Week 5

4.1 Accounting Treatment of Evaporation Loss
4.2 Comparison between Spoilage and Evaporation Loss

5. Joint Products and By-products Week 6

5.1 Different Methods of Allocating Joint Production Costs
5.2 Sell or Process Further
5.3 Cost of Production Reports for Joint Products
5.4 Replacement Cost Method
5.5 Market Value (reversal) Method

2nd Long Examination Week 7

MIDTERM EXAMINATION Week 8

6. Standard Costing

6.1 Actual, Normal and Standard Costing Week9
6.2 Uses of Standard Costs
6.3 Setting Standards
6.4 Implementing Standard Cost System
6.5 Variances from Standards
6.6 Computing and Analyzing Variances

6.7 Direct Materials Variances Week 10
6.7.1 Materials price variance
6.7.2 Materials usage variance
DIPOLOG MEDICAL CENTER COLLEGE FOUNDATION
Sta. Filomena, Dipolog City

6.7.3 Materials mix variance
6.7.4 Materials yield variance

6.8 Direct Labor Variances Week 11
6.8.1 Labor rate variance
6.8.2 Labor efficiency variance

3rd Long Examination Week 12

SEMIFINAL EXAMINATION Week 12

7. Standard Costing- Part 2
7.1 Manufacturing Overhead Variances Week 13
7.1.1 One-way variance
7.1.2 Two-way variance
7.1.3 Three-way variance
7.1.4 Journal Entries in a Standard Cost System
7.1.5 Disposition of Standard Cost Variances
7.1.6 Showing Variances in the Income Statement

4th Long Examination week 14

8. Just-in-time Manufacturing system week 14
8.1 Objective of JIT Manufacturing
8.2 Features of JIT Manufacturing
8.3 Benefits of JIT Manufacturing
8.4 Backflush costing

FINAL EXAMINATION Week 15

VI. REFERENCES
COST ACCOUNTING volume 2
By: Pedro Guerrero, CPA

Cost Accounting and Cost Management
By: Ma. Violeta V. Vicente

Cost Accounting
By: Guillermo M. De Leon, Jr., CPA; Norma D. De Leon, CPA

VII. EVALUATION PROCEDURES
CLASS PARTICIPATION/ QUIZZES 40%
ATTENDANCE 10%
PROJECTS/ ASSIGNMENTS 10%
MAJOR EXAMINATION 40%
TOTAL 100%
DIPOLOG MEDICAL CENTER COLLEGE FOUNDATION
Sta. Filomena, Dipolog City

DATE REVISED: January 2016

PREPARED BY: Gina Lou M. Cacho, CPA

CHECKED BY: MRS. RACHELL-ANN B. BULJATIN, CPA
OIC-Dean, School of Business and Accountancy

APPROVED BY: Dr. DINO JOEY L. CORDOVA
Dean of Instruction/ VP for Academic Affairs