10101125Cost Management
Course Information
Description
This course presents typical accounting methods and processes that are used for collecting information for effective decision making for both manufacturing and service environments. Areas emphasized include job order costing, process costing, standard costing, activity based costing, budgeting, cost allocations, cost-volume-profit analysis and capital investment analysis. Students will be required to prepare and analyze various management reports.
Total Credits
4
Prior Learning Assessment
  • Exam-College Developed Challenge Exam
Course Competencies
  1. Prepare the accounting entries and other supporting information for management accounting reports for manufacturing and service entities
    Assessment Strategies
    by completion of homework assignments
    by results of in-class, closed book exams
    Criteria
    contribution margin income statements and various other management reports are prepared
    balance sheets are prepared
    the proper headings are used on all financial statements
    appropriate subtotals are properly used and calculated

  2. Determine the components of mixed manufacturing costs
    Assessment Strategies
    by completion of homework assignments
    by results of in-class, closed book, exams
    by quizzes and excel projects
    Criteria
    the high low method is used to classify fixed and variable cost
    the scatter graph method is used to classify fixed and variable cost
    regression analysis is used to classify fixed and variable cost

  3. Assign costs within a job order environment
    Assessment Strategies
    through the use of "T" accounts, general journal entries, and subsidiary ledgers
    by completion of homework assignments
    by results of in-class, closed book exams
    Criteria
    direct material is properly tracked
    direct labor is properly tracked
    manufacturing overhead is properly applied
    susidiary ledgers properly are properly reconciled to the general ledger control account

  4. Assign costs within a process costing environment
    Assessment Strategies
    through the use of "T" accounts and general journal entries
    by the preparation of production reports both manually and in excel
    by completion of homework assignments
    by results of in-class, closed book, exams
    Criteria
    process costs are properly tracked
    per unit manufacturing costs are properly calculated
    cost transferred is properly calculated

  5. Allocate support department costs
    Assessment Strategies
    by the preparation of support department allocation worksheets
    by completion of homework assignments
    by results of in-class, closed book, exams
    Criteria
    costs are allocated using the direct method
    costs are allocated using step method
    costs are allocated using reciprocal method

  6. Allocate joint product costs
    Assessment Strategies
    by completion of homework assignments
    by results of in-class, closed book, exams
    Criteria
    allocation is performed using physical unit methods
    allocation is performed using relative sales value methods
    allocation is performed using constant gross margin methods

  7. Develop a primary and flexible budget
    Assessment Strategies
    by preparation of an excel budget spreadsheet
    by completion of homework assignments
    by results of in-class, closed book, exams
    Criteria
    budgets are prepared with the proper subtotals and headings
    all budgets are properly calculated
    all supporting budgets are properly linked

  8. Assign costs using an Activity Based Costing (ABC) system
    Assessment Strategies
    by completion of homework assignments
    by results of in-class, closed book, exams
    Criteria
    all overhead costs are properly assigned to activities
    all activity costs are properly assigned to products
    costs generated by an ABC system can be reconciled with costs generated by a traditional cost accounting system

  9. Track costs with a standard costing system and evaluate variances
    Assessment Strategies
    through the use of "T" accounts and general journal entries
    by completion of homework assignments
    by results of in-class, closed book, exams
    Criteria
    direct material, direct labor, and overhead standards are set
    direct material, direct labor, and overhead are properly calculated and booked
    direct material, direct labor, and overhead variances are properly calculated and booked
    the possible causes of variances are identified

  10. Use Cost Volume Profit analysis techniques
    Assessment Strategies
    by the preparation of contribution margin income statements
    by completion of homework assignments
    by results of in-class, closed book, exams
    Criteria
    volume (dollars and units) to break even are properly calculated
    volume (dollars and units) to achieve a before tax profit goal are properly calculated
    volume (dollars and units) to achieve an after tax profit goal are properly calculated

  11. Use capital investment analysis tools properly
    Assessment Strategies
    by the preparation of report analysis for various investment situations
    by completion of homework assignments
    by results of in-class, closed book exams
    Criteria
    NPV, IRR, cash flow, payback, accounting rate of return analysis is properly calculated and presented

  12. Conduct a financial analysis
    Assessment Strategies
    Group Presentation
    Criteria
    Presentation targets a global company
    Complete horizontal and vertical analysis
    Complete financial ratios
    Compare and contrast ratio focus between domestic and international markets
    Recognize differences in terms and currencies
    Identify strengths and weaknesses in the company and possible corrective action
    Presentation graphics are clear and support findings
    Use correct grammar, punctuation and spelling
    Assess the work of your group members and other groups
    Demonstrate awareness of and sensitivity to other cultures’ norms, practices, and actions while at the same time recognizing, acknowledging, and appreciating individual difference. (ILO CULTURAL AWARENESS 2015)
    Communicate effectively and respectfully with diverse peoples in intercultural teams and work groups. (ILO INTERCULTURAL COMMUNICATION 2015)
    Recognize self as a part of global culture by demonstrating awareness of the interdependence of global systems; by understanding how the U.S. may be perceived world-wide; by solving problems with multiple perspectives and variables; and by making globally responsible decisions. (ILO GLOBAL CITIZENSHIP 2015)
    Apply global perspectives to the work place through the use of appropriate technology for international communication, the ability to collaborate with diverse co-workers, the ability to adapt to variances between cultures in occupational processes, procedures and practices, and through recognizing the impact of the global economy on various occupations and professions. (ILO GLOBAL WORK SKILLS 2015)