Course Number and Title:
ACC 221 Cost Accounting
Campus Location
- Dover
- Georgetown
- Wilmington
Prerequisites
Prerequisite: (ENG 102 or higher concurrent) and ACC 112 and (BUS 107 or CIS 107 or OAT 152)
Course Credits and Hours
3 credit(s)
3 lecture hours/week
1 lab hours/week
Course Description
This course equips students with the knowledge and skills necessary to analyze, record, and interpret cost information for managerial decision-making. Learners apply cost concepts, utilize cost accounting information systems, and evaluate the role of cost data in planning and control. Key topics include elements of cost, job order costing, process costing, joint and by-products, joint products, activity-based costing, and variance analysis.
Core Course Performance Objectives (CCPOs)
- Explain the cost accountant’s role in organizational planning, control, and decision-making. (CCC 1, 2, 5, 6; PGC 2)
- Analyze cost concepts, classifications, behaviors, and allocations within financial statements and manufacturing processes. (CCC 1, 2, 5, 6; PGC 2)
- Analyze costing methods, income statement formats, and the impact of cost behavior on net income. (CCC 1, 2, 5, 6; PGC 2, 5)
- Apply job order costing methods to determine the total cost assigned to jobs. (CCC 1, 2, 5, 6; PGC 2)
- Prepare a production cost report using the process costing system. (CCC 1, 2, 5, 6; PGC 2, 5)
- Allocate joint production costs to joint products, by-products, and scrap using spreadsheets. (CCC 1, 2, 5, 6; PGC 2, 5)
- Evaluate product costs using activity-based costing (ABC) methods to inform managerial decision-making. (CCC 1, 2, 5, 6; PGC 2, 5)
- Prepare a variance analysis using spreadsheets. (CCC 1, 2, 5, 6; PGC 2, 5)
See Core Curriculum Competencies and Program Graduate Competencies at the end of the syllabus. CCPOs are linked to every competency they develop.
Measurable Performance Objectives (MPOs)
Upon completion of this course, the student will:
- Explain the cost accountant’s role in organizational planning, control, and decision-making.
- Describe how managers use accounting information to create value in organizations.
- Differentiate between the uses and users of cost accounting and financial accounting information.
- Explain how cost accounting information supports decision-making and performance evaluation in organizations.
- Examine current trends in cost accounting, including data analytics and data visualization.
- Discuss ethical issues faced by accountants and approaches for resolving them.
- Analyze cost concepts, classifications, behaviors, and allocations within financial statements and manufacturing processes.
- Define key cost concepts and terminology.
- Explain how costs are presented in financial statements.
- Explain the process of cost allocation.
- Examine how material, labor, and overhead costs are incorporated into products at each stage of production.
- Differentiate basic cost behaviors, including fixed, variable, semi-variable, and step costs.
- Identify the components of a product's costs.
- Record the flow of manufacturing cost using general journal entries and T accounts.
- Prepare a statement of cost of goods manufactured to determine its relationship to the income statement.
- Analyze costing methods, income statement formats, and the impact of cost behavior on net income.
- Calculate predetermined overhead rates.
- Differentiate between financial and contribution margin income statements.
- Compare absorption and variable costing methods.
- Analyze how changes in sales or production levels affect net income computation under absorption and variable costing.
- Examine the reasons for estimating fixed and variable costs.
- Apply job order costing methods to determine the total cost assigned to jobs.
- Describe what job and job shop mean.
- Calculate product costs in a job order costing system.
- Account for overhead using predetermined rates.
- Apply job costing methods in service organizations.
- Discuss ethical issues in job costing and appropriate responses.
- Differentiate between jobs and projects.
- Compare job order and process costing systems.
- Prepare a production cost report using the process costing system.
- Explain the concept and purpose of equivalent units.
- Assign costs to products using weighted-average and first-in, first-out (FIFO) costing methods.
- Analyze a production cost report summarizing physical units, equivalent units, and cost flows.
- Analyze the accounting choice between FIFO and weighted-average costing.
- Explain when to use process or job costing.
- Differentiate between operations costing, job costing, and process costing.
- Allocate joint production costs to joint products, by-products, and scrap using spreadsheets.
- Explain the purpose of allocating joint costs.
- Allocate joint costs using the net realizable value, gross margin, and physical quantities methods.
- Use cost data to support sell-or-process-further decisions.
- Account for by-products and scrap in cost reporting.
- Evaluate product costs using activity-based costing (ABC) methods to inform managerial decision-making.
- Explain how a two-stage product costing system works.
- Differentiate between plant-wide and department allocation methods.
- Analyze the relationship between activity-based costing and a two-stage product costing system.
- Compare activity-based product costing to traditional costing methods to assess relevance.
- Demonstrate the flow of costs through accounts using activity-based costing.
- Evaluate the use of activity-based costing in marketing and administrative services decision-making.
- Prepare a variance analysis using spreadsheets.
- Use budgets to support performance evaluations.
- Prepare flexible budgets to compare to actual cost data.
- Prepare a profit variance analysis.
- Analyze variable cost variances to determine causes of deviation.
- Analyze fixed cost variances.
- Demonstrate how to record costs in a standard costing system.
Evaluation Criteria/Policies
The grade will be determined using the Delaware Tech grading system:
| 90-100 |
= |
A |
| 80-89 |
= |
B |
| 70-79 |
= |
C |
| 0-69 |
= |
F |
Students should refer to the
Catalog/Student Handbook for information on the Academic Standing Policy, the Academic Integrity Policy, Student Rights and Responsibilities, and other policies relevant to their academic progress.
Final Course Grade
Calculated using the following weighted average
Evaluation Measure | Percentage of final grade |
Summative Assessments |
Exams (4-5) (Equally weighted) | 50% |
| Cost Accounting Comprehensive Project | 10% |
Formative Assessments |
The course will contain various formative assessments including but not limited to: - Assignments
- Serial Problems
- Discussions
| 40% |
TOTAL | 100% |
Program Graduate Competencies (PGCs are the competencies every graduate will develop specific to his or her major)
- Integrate professional, ethical, and legal standards into business decision-making.
- Apply foundational business concepts that lead to strategic thinking and the ability to analyze complex problems.
- Use professional and technology-based skills that are relevant to the dynamic business environment.
- Employ effective communication skills and collaboration strategies to promote positive organizational outcomes.
- Apply skills necessary to analyze and interpret business and financial data for decision-making purposes.
Core Curriculum Competencies (CCCs are the competencies every graduate will develop)
- Apply clear and effective communication skills.
- Use critical thinking to solve problems.
- Collaborate to achieve a common goal.
- Demonstrate professional and ethical conduct.
- Use information literacy for effective vocational and/or academic research.
- Apply quantitative reasoning and/or scientific inquiry to solve practical problems.
Students in Need of Accommodations Due to a Disability
We value all individuals and provide an inclusive environment that fosters equity and student success. The College is committed to providing reasonable accommodations for students with disabilities. Students are encouraged to schedule an appointment with the campus Disabilities Support Counselor to request an accommodation needed due to a disability. The College's policy on accommodations for persons with disabilities can be found in the College's Guide to Requesting Academic Accommodations and/or Auxiliary Aids Students may also access the Guide and contact information for Disabilities Support Counselors through the Student Resources web page under Disabilities Support Services, or visit the campus Advising Center.