CENTRO ESCOLAR UNIVERSITY

Manila * Makati * Malolos

SYLLABUS ON PCAC103 - COST ACCOUNTING AND CONTROL

Course Number: PCAC103 Course Descriptive Title: Cost Accounting and Control
No of Units: 3 No of Hours per Week: 3
Pre-requisites: PCAC101A – Financial Accounting and Reporting
CEU VISION – MISSION STATEMENT CENTRO ESCOLAR EXPECTED SCHOOL OF ACCOUNTANCY AND MANAGEMENT

UNIVERSITY PHILOSPHY GRADUATE ATTRIBUTES (CEEGA)

LIFELONG LEARNER
Ciencia y Virtud ( Science and Virtue) •Learns and works independently as well as collaboratively. MISSION STATEMENT:
•Translates knowledge generated from research and other sources to
UNIVERSITY VISION improve quality of life.
•Creates new ideas to better understand society The School of Accountancy and Management is dedicated to a
To be the University of First choice
•Evaluates own thinking, behavior and spirituality for self-growth tradition of commitment towards the formation of competent, socially
UNIVERSITY MISSION
REFLECTIVE AND CREATIVE THINKER –responsible, spiritually- integrated, and globally competitive
•Thinks critically and creatively. accountants and business professionals.
To promote a brighter future for our students, for the •Open-minded.
Philippines and for the world. •Solves problems systematically.
•Loves art and shows artistic sensibility.
CEU CORE VALUES CARING AND TRUSTWORTHY CITIZEN VISION:
•Values people and acts in unity with others.
V - Valuing others, caring for them and empowering them •Commits to social justice and principles of sustainability and respect
A - Accountability, integrity and trust worthiness for diversity. Total Quality Education for Global Accountants and Business
L - Lifelong learning as individuals and as an organization •Practices good stewardship and accountability. Professionals
U - Unity, teamwork and loyalty •Manifests social responsibility by helping improve conditions of those
E - Excellence in all endeavors who have less in life or circumstance.
S - Social responsibility as citizens of the Filipino nation and PROFICIENT COMMUNICATOR
of the world
•Articulates ideas clearly for varied purposes and audiences of diverse
culture.
•Listens attentively, engages in meaningful exchange and shares
knowledge, values, attitudes and intentions.
•Utilizes effectively appropriate media and information technologies.
COMPETENT AND PRODUCTIVE PROFESSIONAL
•Initiates, innovates better ways of doing things and accountability.
•Promotes quality and productivity.
 BACHELOR OF SCIENCE IN ACCOUNTANCY EXPECTED LEARNING OUTCOMES:

The graduates of Bachelor of Science in Accountancy should be able to:

• resolve business issues and problems, with a global and strategic perspective using knowledge and technical proficiency in areas of financial accounting and reporting, cost
accounting and management accounting and control, taxation and accounting information systems;

• conduct accountancy research through independent studies of relevant literature and appropriate use of accounting theory and methodologies;

• employ technology as a business tool in capturing financial and non-financial information, generating reports and making decisions;

• apply knowledge and skills to successfully respond to various types of assessments (including professional licensure and examinations); and

• confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions as an accountant.

Course Description:
This course focuses on cost concepts, just in-time system, the cost of quality, environmental cost management and application of various costing methods such as activity
based, job order, process and standard costing. Learners are expected to determine the cost of a product using the appropriate costing method, understand and analyze cost
accounting reports and use it for evaluating and controlling entity performance and formulating managerial decisions.

Course Intended Learning Outcomes:

1. Cognitive Objectives:
• Have a clear understanding in the three (3) elements of manufacturing cost and their accounting
• Have an adequate knowledge and skill in the preparation of the statement of cost of good manufactured and sold
• Have a sound knowledge of the job order cost system
• Have a working knowledge and understanding of standard costing, computation and analysis of variances
2. Affective Objectives:
• To develop among students the value of honesty, objectivity and perseverance in the proper measurement and accumulation of cost for reporting purposes
3. Psychomotor Objectives:
• Apply the knowledge in making cost production schedule and determine cost in every cost elements of a product.
 Intended Learning Outcomes
1. Describe the nature, purpose,
scope and use of modern cost
accounting
2. Explain the value chain concept
in a business firm and the set of
business functions or activities
in such chain
3. Relate the importance and use of
cost accounting to the value
chain
4. Describe the relationship of cost
accounting to financial
accounting, management
accounting and to other fields of
study
5. Enumerate and explain the
primary applications of cost
accounting systems
6. Describe the organizational
aspect of financial management
and the role that the cost
accountant plays
7. Understand the importance of
professional ethics as well as the
ethical issues and guidelines in
using and preparing cost
accounting information
1. Identify and give examples of
each of the three basic
manufacturing cost categories.
2. Distinguish between product
costs and period costs and give
examples of each.
3. Systematically classify cost
Content Teaching Learning Activities Time Resources Assessment
Allotment
I. Cost Accounting Fundamentals Multi-media based teaching techniques 3 hrs. Technology Quizzes
1. Introduction to Cost
Accounting Interactive Seatwork and board work Performance based assessments :
2. Cost accounting: Information
for Decision Making Mini Case studies Graded Recitation
3. Accounting Systems
4. Comparison of Financial Individual or Group discussion
Accounting and Management
Accounting Research Assignments
5. Relationship of Cost
Accounting to other Fields of Case study presentations
Study
6. Scope of Modern Cost
Accounting
7. Cost Management Framework
8. Organizational Environment
9. Ethical Issues and Guidelines
II. Cost Terms, Concepts and Multi-media based teaching techniques 3 hrs. Technology Quizzes
Classifications
1. General Cost classifications Interactive Seatwork and board work Performance based assessments:
2. Product Costs versus Period
Costs
3. Cost Classifications on Financial Group Works Graded Recitation
Statements
 based on varied typologies 4. Product Cost Flows Research Assignments
4. Prepare an income statement 5. Cost Classifications for
including Calculation of the Predicting Cost Behavior
cost of goods sold. 6. Cost classifications for
5. Prepare a schedule of cost of Assigning Costs to Cost Objects
goods manufactured. 7. Cost classifications for Decision
6. Systematically distinguish and Making
segregate variable costs and
fixed costs.
7. Distinguish between direct and
indirect costs.
8. Extensively discuss decision-
making related costs like:
differential costs, ppportunity
costs, and sunk costs.
9. Methodically account for labor
costs associated with idle time,
overtime, and fringe benefits.
10. Identify the four types of
quality costs and explain how
they interact.
11. Prepare and interpret a
company cost periodical report.
1. Predict cost behavior by III. Cost Behavior: Analysis and
utilizing fixed and variable cost Use Multi-media based teaching techniques 5 hrs. Technology Quizzes
activities. 1. Types of cost Behavior Patterns
2. Methodically diagnose cost 2. Importance of Understanding
Interactive Seatwork and board work Performance based assessments:
behavior using a scatter graph Cost Behavior
and other mathematical 3. The Analysis of Mixed Costs
models. 4. Strengths and Weaknesses of Group Works Graded Recitation
3. Analyze and predict mixed cost Cost Estimation Methods
behavior using the high-low 5. Distribution Format Income Problem Solving
method and least-squares and Statement
regression method.
4. Prepare an income statement
using the contribution format.
1. Know the application of IV. Accounting for Cost Flows
costs accounting to the 1. Application of Cost Accounting Multi-media based teaching techniques 3 hrs. Technology Quizzes
various business sectors to Various Business Sectors of
2. Explain the nature of the Economy Interactive Seatwork and board work Performance based assessments:
production, marketing and 2. Production, Marketing and
 administrative costs Administrative Costs Graded Recitation
3. Understand the flow of cost 3. Inventory Accounts
and their presentation in the 4. Flow of Costs in a Research Assignments
Income Statement of a Merchandising Company
merchandising, 5. Flow of Costs in a
manufacturing and service Manufacturing Company
organization
6. Cost Accounting Model for a
Manufacturing Company
7. Flow of Costs in a Service
Organization
1. Distinguish between process V. Systems Design: Job-Order Multi-media based teaching techniques 12 hrs. Technology Quizzes
costing and job-order Costing
costing and identify 1 Process and Job-Order Costing Interactive Seatwork and board work Performance based assessments:
companies that would use 2 Job Order Costing-An
each costing method. Overview
3 Job-Order Costing-The Flow Application of Concepts Graded Recitation
2. Identify the documents used
in a job-order costing of Costs
system. 4 Problems of Overhead Research Assignments
3. Compute predetermined Application
overhead rates and explain 5 Job-Order Costing in Service
Problem solving
why estimated overhead Companies
costs (rather than actual 6 Use of Information
overhead costs) are used in Technology
the costing process.
4. Understand the flow of costs
in a job-order costing
system and prepare
appropriate journal entries
to record costs.
5. Apply overhead cost to
Work in Process using a
pre-determined overhead
rate.
6. Prepare schedules of cost of
goods manufactured and
cost of goods sold.
7. Use T-accounts to show the
flow of costs in a job-order
costing system.
8. Compute under-applied or
over-applied overhead cost
and prepare the journal entry
to close the balance
1. Explain the concept of
process costing system
2. Recognize when process
costing system will be used
3. Describe the key steps in
process costing
4. Explain the significance of
equivalent units and how are
they computed
5. Apply the Weighted average
and FIFO method used to
prepare the departmental
production costs report
6. Explain the concept of cost
allocation
7. Explain and apply the
procedures in accounting for
joint costs and by-products
VI. Systems Design: Process Multi-media based teaching techniques 12 hrs. Technology Quizzes
Costing System; Cost
Allocation Interactive Seatwork and board work Performance based assessments:
1. Process Costing: Concepts
and Application Application of Concepts Graded Recitation
2. A Cost-Benefit Comparison
of Job-Order Costing and
Assignments
Process Costing
3. Steps in Process Costing
Mini Cases
4. Process Costing Methods
5. Illustration of Process
Costing
6. Cost Allocation
7. Accounting for Joint Product
Costs and By-Products
8. Methods for Allocating Joint
Costs to Joint Products
9. Accounting for By-Products
1. Explain how hybrid-costing
systems develop in relation
to production systems
2. Develop an understanding
for an operation-costing
system
3. Prepare journal entries for
an operation-costing system
4. Describe a just-in-time
production system
5. Explain how just-in-time
systems simplify job costing
6. Prepare journal entries for
backflush-accounting
system
1. Discuss activity-based
costing
2. State the advantages and
limitations of activity-based
costing
3. Describe the steps in
designing an activity-based
costing system
4. Enumerate examples of
activity centers, cost drivers
and traceable costs
5. Apply activity-based costing
to a manufacturing company
6. Apply activity-based costing
to a merchandising company
7. Discuss activity-based
management
8. Describe opportunity cost
concept
1. State the nature and
rationale of standard costs
2. Discuss the uses of standard
costs
3. Explain the benefits and
VII. Operation Costing, Just-In- Multi-media based teaching techniques 3 hrs. Technology Quizzes
Time System and Backflush
Costing Interactive Seatwork and board work Performance based assessments:
1. Introduction
2. Hybrid Costing System
Application of Concepts Graded Recitation
3. Operation Costing
4. Just-in-Time and Backflush Assignments
Costing
5. Financial Benefits of JIT
6. Major Features of JIT
Production System
VIII. Activity Based Costing and Multi-media based teaching techniques 5 hrs. Technology Quizzes
Management
1. Activity-Based Costing Interactive Seatwork and board work Performance based assessments:
2. Advantages and Limitations
of ABC System Application of Concepts Graded Recitation
3. Steps in Designing an ABC
System Assignments
4. Application of Activity-Based
Costing in Merchandising
and Manufacturing
Businesses
5. Activity Based Management
6. Opportunity Costing
Concepts
IX. Standard Costs and Operating Multi-media based teaching techniques 8 hrs. Technology Quizzes
Performance Measures
1. Rationale of Standard Costs Interactive Seatwork and board work Performance based assessments:
2. Uses of Standard Costs
 limitations of standard costs
4. Describe how standards are
set
5. Explain the process of
setting standard costs for
direct material, direct labor
and overhead
6. Identify the possible causes
of variances and
responsibility for them
7. Compute and analyze the
variances between actual
costs and standard costs
Course Requirements:
3. Benefits of Standard Costs Application of Concepts Graded Recitation
4. Limitations of Standard Costs
5. How Standards are Set Assignments
6. Setting Direct Material
Standards
7. Setting Direct Labor
Standards
8. Setting Overhead Standards
9. Standard Cost Flows
10. Treatment of Variances
11. Operating Performance
Evaluation
12. Factory Overhead Variance
Analysis

Grading Scheme: 2/3 Class Participation and 1/3 Periodic Exam

References:

Cost Accounting and Control, Ma. Elenita Balatbat Cabrera, 2019 edition.
Cost Accounting, Edward J. VanDerbeck and Maria R. Mitchell,2015, 17th edition.
Managerial Accounting, Garrison et al, Mc Graw-Hill,2018, 16th edition.
Cost Accounting, Guillermo and Norma D. de Leon, 2016 edition, Manila
Cost Accounting: A Managerial Emphasis. Horngren et al, 3rd edition, 2017
Fundamentals of Cost Accounting, Lanen, William N. et al, Mc McGraw-Hill International Edition, 2016, 5th edition.

WEBSITE:
https://www.accountingcoach.com/

Prepared by: Date: Approved by: Date:

June 18, 2019 (Sgd.) PROF. ROY RAIAN A. JOSON, CPA, MSA April 30, 2019
(Sgd.) DR. LYSSANDER RODAN DELA CRUZ, CPA, MBA, DPA Dean/Head
(Sgd.) PROF. DANILO D. REYES, CPA, MBA, CHBA, RFP
Curriculum Mapping:
ALIGNMENT OF PROGRAM OUTCOMES AND COURSE INTENDED LEARNING OUTCOMES

CILO CILO CILO CILO CILO CILO

PROGRAM OUTCOMES
1 2 3 4 5 6
Resolve business issues and problems, with a global and strategic perspective using knowledge and technical
1 proficiency in areas of financial accounting and reporting, cost accounting and management accounting and control,      
taxation and accounting information systems;

Conduct accountancy research through independent studies of relevant literature and appropriate use of accounting
2 theory and methodologies; 

Employ technology as a business tool in capturing financial and non-financial information, generating reports and making 
3  
decisions
Apply knowledge and skills to successfully respond to various types of assessments (including professional licensure and
4      
examinations); and
Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing
5  
functions as an accountant.

ALIGNMENT OF PROGRAM OUTCOMES IN CEEGA

Reflective Caring and Proficient Competent

Lifelong and Trustworthy Communicato and
PROGRAM OUTCOMES Learner Creative Citizens r Productive
Thinker Professional
Resolve business issues and problems, with a global and strategic perspective using
knowledge and technical proficiency in areas of financial accounting and reporting, cost
1     
accounting and management accounting and control, taxation and accounting information
systems;
Conduct accountancy research through independent studies of relevant literature and
2    
appropriate use of accounting theory and methodologies;
Employ technology as a business tool in capturing financial and non-financial information,
3  
generating reports and making decisions
Apply knowledge and skills to successfully respond to various types of assessments (including
4     
professional licensure and examinations); and
Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical
5  
practice in performing functions as an accountant.
Prepared by: Date: Approved by: Date:

(Sgd.) DR. LYSSANDER RODAN C. DELA CRUZ APRIL 30, 2019 (Sgd.) PROF. ROY RAIAN A. JOSON, CPA, MSA APRIL 30, 2019
Dean/Head

• Have a clear understanding in the three (3) elements of manufacturing cost and their accounting
• Have an adequate knowledge and skill in the preparation of the statement of cost of good manufactured and sold
• Have a sound knowledge of the job order cost system
• Have a working knowledge and understanding of standard costing, computation and analysis of variances
3. Affective Objectives:
• To develop among students the value of honesty, objectivity and perseverance in the proper measurement and accumulation of cost for reporting
purposes
3. Psychomotor Objectives:
• Apply the knowledge in making cost production schedule and determine cost in every cost elements of a product.