Course Name: XCOSTACM

Course Title: Cost Accounting And Cost Management

Instructors: Aguarin, Bautista, Canlas and Plicarpio

Required Text: Cost Accounting Latest Edition, Norma De Leon

Course Description:
Introduces the students to cost accounting and cost management
framework of business. Focuses on the concepts, scope and
objectives of Cost Accounting, determination of cost, costing and
control, methods of costing and management of costs. Students
are expected to apply the concepts and methods by preparing
cost accounting reports of actual business.

Topic Outline: Estimated No of Hours

1. Concepts, Scope and Objectives of Cost Accounting 9.00

 Concepts, scope and objectives of cost accounting
as to its relationship to:
 financial accounting
 management accounting
 Nature, classification and purpose of cost.
 Elements of product cost, cost flow in service,
trading and manufacturing businesses.

2. Determination of Costs and Preparation of Costs Statements 12.00

 Journal entries for:
 Manufacturing operations
 Acquisition & usage of materials
 Labor cost incurrence and distribution
 Incurrence of overhead
 Items of overhead classified into fixed and variable,
 methods of separating fixed from variable in a mixed cost.
 Actual vs. applied overhead (using different overhead rates)
 Over-or under-applied overhead recognition and disposition.
  Cost statement as to:
 Service
 Trading
 Manufacturing operations

3. Costing and Control 12.00

 Materials Costing and Control
 Based on physical flow:
 Traditional control procedures
 Order cycling
 Min-max
 Two-bin
 Automatic order
 ABC plan
 Alternative inventory management
 Economic Order Quantity (EOQ)
 Total Quality Management (TQM)
 Just in Time (JIT) (backflush costing)
 Accounting and control of scrap, defective and spoiled materials and goods.
 Cost reduction techniques
 Work study
 Time and motion study
 Value analysis
 Direct Labor Costing and Control
 Documents and their flow in labor costing and control
 Payroll preparation and distribution
 Other Labor-related costs
 Overhead Costing and Control
 Selection of activity base/level
 Plant-wide vs. multiple overhead rates
 Separating variable from fixed in missed costs
 High-low
 Scattergraph
  Least squares
 Variable rate and fixed overhead rate
 Allocation of service department cost
 Direct
 Stepwise
 Algebraic
 Joint and By-Products
 Definition and Characteristics
 Methods of allocation
 Management decisions
 Accounting
 Journal entries

4. Job Order Costing 9.00

 Nature, definition and characteristics
 Cost flow of materials, labor and overhead
 flow of documents
 journal entries
 posting to job order cost sheets

5. Process Costing 8.00

 Definition, nature and characteristics of the Process Cost System
 Equivalent units of production
 Average
 FIFO
 Cost of production reports
 Single and multi-department
 Even and uneven application of cost

6. Joint Costs 8.00

 Management decisions regarding joint process

7. Standard Costing 8.00

  Definition and objectives of standard costing
 Uses and limitations of standard costing
 Determination and setting up of standards
 Variance analysis
 Materials (including mix and yield)
 Labor (including mix and yield)
 Overhead (including four variance method)

8. Activity based costing 4.00

9. Target costing 4.00

 Conceptual foundation
 Use of target costing facilitating strategic management
 Steps in implementing target costing approach

10. Total quality management 4.00

11. Value reengineering 5.00

 Conceptual foundation
 Types of value engineering
 Functional analysis
 Design analysis

12. Theory of constraints 5.00

 Conceptual foundation of the theory of constraints
 Application of the theory of constraints to facilitate strategic management.
 Steps in the theory of constraints analysis.

13. Life-cycle costing 5.00

 Conceptual foundation of life-cycle costing
 Using life-cycle costing to facilitate strategic management
 Pricing using the cost-life cycle
 Full manufacturing cost plus markup
  Life-cycle cost plus markup
 Full manufacturing cost and desired gross margin percent.

14. Environmental Cost Management 6.00

 Business process-oriented environmental management and
controlling systems.
 Integrating managerial environmental information
system for supporting environmental management, controlling and auditing.
 Integration of quality and environmental management, controlling and auditing.
 Environmental investment management.
 Environmental reporting
 Environmental ratio systems
 Managerial evaluation of instruments of environmental policy.

Total Sessions Express As Contact Hours 108

 Recap

Identification of CPC Topics Covered in this Course Estimated

Contact Hours
Accounting 98
Marketing 1
Finance 2
Management 2
Organizational Behavior 1
Human Resource Management 1
Operations Management 3
Legal Environment of Business 1
Economics 1
Ethics 2
Information System 2
Quantitative Methods/ Statistics 3
International/ Global Dimensions of Business 1
Integrative Experience 6
Total Estimated Contact Hours 124