Rift Valley University, College of Business & Economics, Department of Accounting & Finance

COURSE OUTLINE

Course Title: Cost & Management Accounting I

Module Code: AcFn-M3030
Course No. : AcFn-3031
No. of Credit Hours: 3 (Three)
Semester: II (Two)
Year: 2023/24GC. / 2016 EC.
Program: Regular & Weekend
Instructors’ Name: Megersa H +251910484555 (magarsahirpha4@gmail.com)
Title: Lecturer

 TEXT AND REFERENCE BOOKS

 Text books:
Horngren, Foster, &Datar. Cost Accounting: A Managerial Emphasis. 9th Ed. 1997
Horngren, Sunden& Stratton. Introduction to Management Accounting. 11th Ed. 1999

 Reference Books
C.T Homgren, Introduction to Management Accounting 4th to 8 th editions, 1999 USA
C.T. Homgren, Cost Accounting: A Managerial Emphasis 5th to 8th ecitionsprentice Hall
Inc. 1982 to 1994
Homgren, foster, &Datar, Cost Accounting A Managerial Emphasis. 10 thEcition
L.E. Heitger Managerial Accounting 1th and 2 nd editions, McGraw Hill , 1998, India
GetuJemaneh, Management Accounting 1996.
Ray H.Garrison, Managerial Accounting. 6th edition
Caluinengler, Managerial Accounting 2nd edition
L. Gayle Rayburn Principles of cost Accounting using a cost Management Approach 4th
edition Richard DIR WIN Inc. 1989.
Robert X. Kaplan Advanced Management Accounting 1st and 2nd edition prentice Haill,
Inc, 1982 and 1989 (Chapters 2, 11,12, and 13 only)

 COURSE DESCRIPTION

Cost accounting course concerns with fundamental cost concepts, behavior, and analysis and the use of
cost information to develop superior decision making process and outputs. This course introduces the
production, communication, and the use of accounting information within the context of business
activities.

Course Outline - Cost & Management Accounting I; Instructor: Megersa H, 2023/24 (2016 Page 1
 Rift Valley University, College of Business & Economics, Department of Accounting & Finance
COURSE OBJECTIVES & COMPETENCES TO BE ACQUIRED

 Upon the successful completion of this module, students should be able to:
 Use various classifications to analyze costs within the organization.
 Describe and apply the principles relating to the costing of the different resource inputs into a
business.
 Demonstrate output costing methods appropriate to a variety of different businesses.
 Illustrate and evaluate absorption, marginal costing, activity-based costing methods and other
management cost accounting methods and techniques.
 Apply and analyze different types of activity-based management tools through the preparation of
estimates.
 Describe, illustrate and comment on the planning and control uses of standard costing, budgeting
and variance analysis

 COURSE CALENDAR/SCHEDULE FOR EACH SESSIONS OF THE WEEK

N0. Week Topic/Content (Course Contents) Assignment, Evaluation

& Suggested Activities
Chapter-1= Overview of Cost & Management Accounting
1.1 Objectives of Cost & Management Accounting
1.2 Cost and Management Accounting in Comparison with
Week: Financial Accounting
1&2 1.3 Cost Benefit Philosophy & Behavioral Considerations in  Reading
Management Accounting System Assignment
1.4 Management Accounting in Service Organizations  Mid-exam 1
1 1.5 Ethical Considerations in Management Accounting
Chapter-2 = Cost Classification, Concepts and Terms
2.1 Direct and indirect costs,
2.2 Fixed and variable costs,  Home-take
2.3 Period and product costs, Group
2.4 Controllable and uncontrollable costs, Assignment 1
Week: 2.5 Avoidable and unavoidable costs,
2
3, 4, & 5 2.6 “Sunk” costs,
2.7 Budgeted, standard and actual costs and their comparisons
and analyses
2.8 The concepts of cost units, cost centers and profit centers

Course Outline - Cost & Management Accounting I; Instructor: Megersa H, 2023/24 (2016 Page 2
 Rift Valley University, College of Business & Economics, Department of Accounting & Finance
Chapter 3= Costing Methods:

3.1 Concepts: Costing System, Cost Pool, Cost Allocation  Reading

Bases Assignment
3.2 Job Order Costing System Features
Week: 3.3 Accounting Procedures for Job Order Costing System
3 3.4 Process Costing System Features
6&7
3.5 Job Order Costing System – Illustration
3.6 Process Costing System
3.7 Illustration(FIFO Methods)
3.8 Spread Sheet Application of Process Costing
3.9 Problems of Overhead Application
3.10 Operations Costing
Chapter 4= Spoilage, Reworked Units and Scrap
 Home-take
4.1 Spoilage, Rework and Scrap in General Individual
Week: 4.2 Process Costing and Spoilage
8, 9 & 10 4.3 Job Order Costing and Spoilage Assignment 2
4
4.4 Reworked Units
4.5 Accounting for Scrap
Chapter 5= Cost Allocation
5.1 Cost Allocation in General  Reading
5.2 General Purpose of Cost Allocation Assignment
5.3 Allocation for Economic Decisions and Motivations
Week: 5.4 Cost Allocation Methods
11 & 12 5.5 The Contribution Approach to Cost Allocation
5
5.6 Joint Products and by Products
• Concepts – Joint, by Products Joint Costs
• Allocation of Joint Cost
• Accounting for by Products
Chapter 6= Activity-Based Costing and Management
6.1 Activity-based costing; use of cost drivers and  Reading
Week: activities Assignment
6
13 & 14 6.2 Activity Based Costing for Customer Profitability
6.3 Activity Based Management

Course Outline - Cost & Management Accounting I; Instructor: Megersa H., 2023/4 (2016Ec.) Page 3
 Rift Valley University, College of Business & Economics, Department of Accounting & Finance

 TEACHING METHODOLOGIES
- Lecture and Class Discussion
- Quiz and Assignment
- Group Work and Presentation

 EVALUATION:
1. Group Assignment…......................................................15%
2. Individual Assignment……………………………….... 15%
3. Continuous Assessment- Mid-exam...............................20%
4. Class Attendance.............................................................10%
5. Final Exam (Chapter 2,3,4)......................................................40%
Total.........................................................................100%

Course Outline - Cost & Management Accounting I; Instructor: Megersa H., 2023/4 (2016Ec.) Page 4