MULUNGUSHI UNIVERSITY

SCHOOL OF BUSINESS (SBS)

COURSE OUTLINE

COST AND MANAGEMENT ACCOUNTING I BAF 221

1.0 LECTURER:

2.0 LECTURER CONTACT TIME AND PLACE

Day(s) From To Location

3.0 PRE-REQUISITE : BAF 211

4.0 OBJECTIVES OF THE COURSE

After the completion of this course, the student will be able to:
▪ Distinguish between Cost Accounting, Management Accounting and Financial
Accounting.
▪ Explain the basic concepts in cost classifications.
▪ Make all descriptions on various approaches used to accumulate cost with
special emphasis on manufacturing companies.
▪ Describe the costing for materials, labor and overheads.
▪ To explain the fundamentals of accounting procedure for Job, Process and
Activity based Costing
▪ To elucidate accounting procedures of joint product and byproducts
5.0 COURSE DESCRIPTION

The topics covered in this course includes Role of cost accounting; cost
terminologies and classifications; Approaches to cost accumulation and
allocation, job order costing, process costing, and operation costing

6.0 COURSE OUTLINE

Unit 1 COST ACCOUNTING: OVERVIEW

▪ Introduction
▪ The major purposes of accounting systems
▪ Management Accounting, Financial Accounting and Cost Accounting
 ▪ Cost management and accounting systems
▪ Modern cost accounting
▪ Managers as Customers of Accounting
▪ The Value Chain of Business Functions
▪ Elements of management control
▪ Scorekeeping, Attention-Directing, and Problem-Solving Function
Unit 2 BASIC COST CONCEPTS AND CLASSIFICATIONS
▪ Introduction
▪ Basic Cost Concepts
▪ Cost Accumulation and Allocation
▪ Cost-Object
▪ Cost Accumulation and Cost Assignment
▪ Manufacturing costs
▪ Prime Costs and Conversion Costs
▪ Variable Vs Fixed; Direct Vs Indirect Classification
▪ Major Assumptions
▪ Total costs and unit costs
▪ Meaning of Unit Costs
▪ Use Unit Costs Cautiously
▪ Other Cost Classification
▪ Cost Flows in Manufacturing Firms
Unit 3 ACCOUNTING FOR LABOR, MATERIAL AND OVERHEADS COSTS

▪ Introduction
▪ Accounting for Materials
▪ Calculating Economic Order Quantity
▪ Control over Materials
▪ Inventory Systems and Costing Methods
▪ Accounting For Labor Costs
▪ Accounting for Actual and Applied for Overheads
▪ Identifying cost behavior patterns
▪ Budgeting factory overhead costs
▪ Accounting for actual factory overhead
▪ Applying factory overhead to production
▪ Establishing predetermined factory overhead rates
▪ Direct Labor Cost Method
▪ Direct Labor Hour Method
▪ Machine Hour Method
▪ Activity-Based Costing Method

Unit 4 COST ACCUMULATION SYSYTEMS

▪ Introduction
▪ Job Vs. Process Costing
▪ Job-costing and process-co sting system
▪ Similarities & Differences between Job Order and Process Costing
▪ Normal Vs. Actual costing
▪ Job costing in manufacturing
 7.0 PRACTICLES

Case studies
(Analyzing financial statements for various business organizations)

8.0 EVALUATION

Assignments 10%
Supervised Class Test 30%
Continuous Assessment 40%
Final exam 60% (3 hour exam paper)
Total 100%

9.0 REFERENCES
Text Book : Charles T Horngren , Cost Accounting 13th Edition
1. Kieso, D.E, Intermediate Accounting, 10th edition
2. Wood F; 2007, Business Accounting 1 (10th Edition), Pearson
Education Limited, UK
3. May R. et al; A New Introduction Of Financial Accounting, Prentice
Hall.
4. Clarke P. J.; Financial Accounting; Macmillan
9.1 Other References
5. Bendrey M. et al (2005); Essentials of Financial Accounting in
Business;
6. Thomason Learning, London
7. Brigham, E.F. and Houston, J.F. (1999), Fundamentals of Financial
Management, Second edition,