W. TERRY DANCER
PROFESSOR OF ACCOUNTING
ARKANSAS STATE UNIVERSITY
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W. TERRY DANCER
PROFESSOR OF ACCOUNTING ARKANSAS STATE UNIVERSITY
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COST ACCOUNTING I ACCT 3023 STUDENT INFORMATION
SHEET AND COURSE OUTLINE FALL 2006 COURSE
PREREQUISITE: PRINCIPLES OF ACCOUNTING II, WITH A GRADE OF C OR BETTER
INSTRUCTOR: W. TERRY DANCER OFFICE: 308 BUSINESS BUILDING E-MAIL: DANCER@ASTATE.EDU
WEB PAGE: www.clt.astate.edu/dancer OFFICE HOURS: Tuesday:
9:15-11:00; 12:45-2:00; 3:15-3:30
Thursday: 9:15-11:00; 12:45-2:00;
3; 15-3:30
Other times by appointment PHONE:
OFFICE:
972-3038
HOME: 935-1579 CLASS SCHEDULE: Tuesday and Thursday: 8-9:15-Cost
Accounting I, Bu 106; 11-12:15: Cost Accounting I: Library CVN 348;
2-3:15: First year Experience. Web class: Survey of Accounting. COURSE MATERIALS: COST ACCOUNTING, 12TH
EDITION, WRITTEN BY HORNGREN, DATAR, AND FOSTER, PUBLISHED BY PRENTICE HALL.
MISSION
STATEMENT, COST ACCOUNTING I, PROFESSOR DANCER I
pursue and share cost accounting knowledge within a teaching and learning environment
that cares about all students enrolled in Cost Accounting I and prepares all
students enrolled to become a more understanding businessperson and informed
citizen of our community and region. COURSE GOAL: The
overall goal for this course is for you to gain knowledge and understanding of
a variety of Cost Accounting topics. This knowledge and understanding of
Cost Accounting is an integral part of learning the overall nature of
accounting and one of the varied aspects of accounting available in the
marketplace for careers in accounting. COURSE
OBJECTIVES: The first
page of each chapter we study lists a number of student oriented learning
objectives. These objectives represent the accomplishments you should achieve
from your efforts directed toward a complete and thorough study of the chapter.
You should begin each chapter by learning each of the objectives in
detail. These objectives will tell you what you should be able to do once
you have completed your study of a particular chapter. Once you
finish your study of a chapter, go back to the objectives and test do a
self-test to determine if you have indeed mastered the stated objectives. MY TEACHING
PHILOSOPHY: A teacher is someone who motivates and encourages
someone else to learn something new. Thus, teaching and learning requires
someone to teach and someone to learn. As your teacher, you have the right to
expect much from me. You may expect me to be knowledgeable, prepared,
approachable, and perhaps even have a bit of a sense of humor. My basic
philosophy is that a teacher must have all these qualities. As my student, you
must understand first that learning comes only through hard work and diligent
study of the course content. I expect you to study the book, attend
class, pay close attention to what I may have to say, and ask questions about
what you do not understand. We have limited class time together, so you
must prepare yourself for adequate study time between our class sessions.
FINAL GRADE BASIS: FOUR EXAMS EACH 100 POINTS
500 FINAL
EXAMINATION
150 DAILY WORKSHEETS (22@4 PTS EACH)
88 ETHICS
15 INTERNATIONAL ASSIGNMENT
10 LIBRARY/RESEARCH
ASSIGNMENT 10
COMPUTER
WORK 30 MANUFACTURING
PROJECT 20 (EX
PERIENTIAL LEARNING)
TOTAL POINTS POSSIBLE 823 FINAL GRADE DISTRIBUTION BASED ON 90%, 80%, 70%, 60%,
A, B, C, D RESPECTIVELY. **NOTE: ALL HOMEWORK ASSIGNMENTS, EXCEPT FOR DAILY
WORKSHEETS, MUST HAVE A HOMEWORK COVER SHEET STAPELED AS THE FRONT PAGE OF THE
HOMEWORK BEING TURNED IN. HOMEWORK COVER
SHEETS ARE INCLUDED AS PART OF THIS PACKET. MAJOR EXAMS: The five major exams are given as scheduled on the
Classroom Activities Schedule. The tests will contain a problem/essay
from each chapter and multiple-choice questions. During the class before each test, I
will give you a review of the test and indicate the type of items you will be
answering. FINAL EXAMINATION: The final examination will contain 40 multiple
choice questions from the chapters we study during the semester. The only
way to adequately prepare for a comprehensive exam is to study some each day
and not wait until the last minute to begin your test preparation. DAILY WORKSHEETS: A worksheet will be turned in each day of class,
except for test days. The worksheets may not be turned in early or late
for credit. Worksheets will be taken up at the beginning of class.
A separate sheet will detail the work required for individual days. A
total of 22 worksheets will be taken up
during the semester. A schedule of work required
is attached. ETHICS/INTERNATIONAL/LIBRARY: This assignment is Due October 12. See attached
sheet for explanations. This assignment
is worth 35 points. COMPUTER ASSIGNMENT: This
assignment is due November 14. This
assignment is worth 30 points. Cost
accountants spend a great deal of time gathering cost data, organizing the cost
data, entering the data into the computer, and then most important of all,
explaining the results of their work to management. Your computer assignment is to gather cost
data from schools of higher learning in Process: I will
give you the names of four schools. You
will contact these schools and request data concerning the cost of attending
their school. Everyone will gather data
related to MANUFACTURING
PROJECT: Experiential learning is the
process of learning by doing. This
project requires that you gather raw materials, supply the labor and overhead,
and make something from your raw materials.
The item you manufacture should not be perishable and should be small
enough so you are able to bring it to class for a short presentation. Keep a
diary of what you did during the process and most importantly an accounting for
the cost of the materials, labor, and overhead that went into your finished
product. Prepackaged snap together kind of
products out there are not the kinds of things I want you to make. I want you to use your imagination and
creative talents to come up with something of your own creation. These
projects are due on November 28. This assignment is worth 20 points. MAKE-UP POLICY: Make-up
tests will be given with adequate reason for missing the examination. If
you miss and have a valid excuse, you will receive a notice of makeup date and
time when the test is returned to those who took the exam. All makeup exams will have 5 essay questions,
10 short answer questions, and 15 definitions. One make-up exam will be
scheduled before mid-term if you miss tests one or two and a second make-up
time will be scheduled after mid-term if you miss test 3 or 4 or 5. IF YOU MISS MORE THAN ONE EXAM, YOU SHOULD
DROP IMMEDIATELY BECAUSE YOU WILL BE ALLOWED ONLY ONE MAKEUP DURING THE
SEMESTER. Daily worksheets will not be
taken up late for credit. The
only exception to this if you are on a school sponsored trip and have the
necessary document to give to faculty indicating the nature of the
absence. Otherwise, You must attend
class to get credit for the worksheets. Other
late homework will be accepted for marginal credit only. Marginal Credit
is credit between 0% and 50% of the value of the work. Late homework will
be accepted on November 30 at the beginning of class. OTHER ITEMS Please turn off cell phones and pagers
during class time. Both represent
distractions other students should not have to deal with. Children are not allowed in class. If you bring your child to class, I will
respectfully ask you to leave before class begins.
Homework is late if not turned in during class time. ***THE WORK
YOU DO SHOULD BE YOUR OWN. BOTH THE GIVING AND RECEIVING OF ANSWERS
CONSTITUTES CHEATING. IF YOU ARE CAUGHT CHEATING, YOU MAY EXPECT TO BE
EXPELLED FROM THE UNIVERSITY.
ALL ABOVE SUBJECT TO REVISION
ACCOUNTING 3023 COST ACCOUNTING I CLASSROOM ACTIVITIES
SCHEDULE FALL 2006 AUGUST 22
INTRODUCTION TO COST ACCOUNTING AUGUST 24
CHAPTER 1: THE ACCOUNTANT’S ROLE IN THE ORGANIZATION
Learning objectives: At the conclusion of your study in chapter 1, you
will be able
to: 1.
Describe how cost accounting supports management accounting and
financial accounting. 2. Understand how management accountants
affect strategic decisions. 3. Describe the set of business
functions in the value chain. 4. Identify the dimensions of
performance that customers are expecting of companies. 5. Distinguish between the planning and
control decisions of managers. 6. Distinguish
among the problem solving, scorekeeping, and attention-directing roles of
management accountants. 7. Describe three guidelines management accountants
follow in supporting managers. 8. Understand
how management accounting fits into an organization’s structure. 9. Understand
what professional ethics mean to management accountants.
WORKSHEETS, NOTES, QUESTIONS, 22, 29, 31 AUGUST 29 AND 31 CHAPTER 2: AN INTRODUCTION TO COST TERMS AND PURPOSES.
LEARNING OBJECTIVES: AT THE END OF YOUR STUDY OF CHAPTER 2, YOU WILL
BE ABLE TO: 1. Define
and illustrate a cost object. 2. Distinguish
between direct and indirect costs. 3. Explain
variable and fixed costs. 4. Interpret
unit costs cautiously. 5. Distinguish
among manufacturing companies, merchandising companies, and service-sector
companies. 6. Describe the three categories of inventories
commonly found in manufacturing companies. 7. Distinguish inventoriable costs from period
costs. 8. Explain why product costs are computed in
different ways for different purposes. 9. Describe a framework for cost accounting and
cost management.
WORKSHEETS, NOTES, QUESTIONS, 24,
25, 35 SEPT 5 AND 7
CHAPTER 3: COST-VOLUME-PROFIT ANALYSIS
Learning Objectives: At the completion of your study of Chapter 3, you
will be able to: 1. Understand the assumptions of
Cost-Volume-Profit (CVP) analysis. 2. Explain the features of CVP
analysis. 3. Determine the breakeven
point and output level needed to achieve a target operating income. 4. Understand how income taxes affect
CVP analysis. 5. Explain CVP analysis in decision making
and how sensitivity analysis helps managers cope with uncertainty. 6. Use CVP analysis to plan variable and
fixed costs. 7. Apply CVP analysis
to a company producing different products. 8. Adapt CVP
analysis to situations in which a product has more than one cost driver 9. Distinguish
Contribution Margin from Gross Margin WORKSHEETS, NOTES, QUESTIONS, 24, 25,
35 SEPTEMBER 12 TEST ONE CHAPTERS ONE, TWO, AND THREE SEPTEMBER 14 AND 19 CHAPTER 4: JOB COSTING:
Learning Objectives: At the conclusion of your study of Chapter 4, you will be
able to: 1. Describe the
building-block concepts of costing systems. 2. Distinguish job
costing from process costing. 3. Outline the seven-step approach to job
costing. 4. Distinguish actual
costing from normal costing. 5. Track the flow of
costs in a job-costing system. 6. Account
for end-of-period under allocated or over allocated indirect costs using
alternative methods. 7. Apply
variations from normal costing.
WORKSHEETS, NOTES, QUESTIONS, 20, 21, 33 SEPT 21 AND 26
CHAPTER 5: ACTIVITY BASED COSTING AND ACTIVITY BASED MANAGEMENT: WORKSHEET;
5-18.
Learning Objectives: At the end of your study of Chapter 5, you will be able to: 1. Explain undercosting
and overcosting of products or services. 2. Present three guidelines for
refining a costing system. 3. Distinguish between the traditional and the
activity-based costing approaches to designing a costing system. 4. Describe a four-part cost hierarchy. 5. Cost products or services using
activity-based costing. 6. Use
Activity-based costing systems for Activity-based management. 7. Compare
Activity-based costing systems and department-costing systems. 8. Evaluate the
costs and benefits of implementing activity-based costing systems.
WORKSHEETS,
NOTES, QUESTIONS, 23, 37 SEPT 28
TEST TWO, CHAPTERS 4 AND 5 OCTOBER 3 AND 5 CHAPTER
6: MASTER BUDGET AND RESPONSIBILITY ACCOUNTING:
Learning Objectives: Once you complete you study of Chapter 6, you will
be able to: 1. Understand what a
master budget is and explain its benefits. 2. Describe the
advantages of budgets. 3. Prepare the operating
budget and its supporting schedules. 4. Use computer-based
financial planning models in sensitivity analysis. 5. Explain kaizen
budgeting and how it is used for cost management. 6. Prepare an
activity-based budget. 7. Describe
responsibility centers and responsibility accounting. 8. Explain
how controllability relates to responsibility accounting.
WORKSHEETS, NOTES,
AND QUESTIONS, 22, 31 OCTOBER 10AND 12 CHAPTER
7: FLEXIBLE BUDGETS, VARIANCES, AND MANAGEMENT CONTROL:
Learning Objectives: Once you complete your study of Chapter 7, you will
be able to: 1. Distinguish a static budget from a flexible
budget. 2. Develop flexible
budgets compute flexible-budget variances and sales-volume variances. 3.
Explain why standard costs are often used in variance analysis. 4. Compute price
variances and efficiency variances for direct-cost categories. 5. Explain why purchasing
performance measures should focus on more factors than just price variances. 6. Integrate continuous
improvement into variance analysis. 7. Perform
variance analysis in activity-based costing systems. 8. Describe
benchmarking and how it is used in cost management. WORKSHEETS, NOTES, QUESTIONS, 20,21,22,38 OCTOBER 17 TEST THREE CHAPTERS 6 AND 7 OCTOBER
19 AND 24 CHAPTER 8: FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT
CONROL
Learning objectives: At the
conclusion of your study of chapter 8, you will be able to: 1.
Explain the similarities and differences in planning variable overhead costs
and fixed overhead costs. 2. Identify
the features of standard costing. 3.
Compute the variable overhead efficiency variance and the variable overhead
spending variance. 4. Explain
how the variable overhead efficiency variance differs from the efficiency
variance for a direct cost. 5. Compute
a budgeted fixed overhead cost rate. 6. Explain two concerns when interpreting the
production-volume variance as a measure of the economic cost of unused
capacity. 7. Show how the 4-variance analysis approach
reconciles the actual overhead incurred with the overhead amounts allocated
during the period. 8. Calculate overhead variances in
activity-based costing. WORKSHEETS,
NOTES, QUESTIONS: 18,19,22,33 OCT 26 AND 31
CHAPTER 10: DETERMINING HOW COSTS BEHAVE
Learning Objectives: At the
end of your study of Chapter 10, you will be able to 1.
Explain 2 assumptions frequently used in cost-behavior estimation. 2. Describe linear cost
functions and three common ways in which they behave. 3. Understand various
approaches to cost estimation. 4. Outline six steps in
estimating a cost function on the basis of past cost relationships. 5. Describe three
criteria used to evaluate and choose cost drivers. 6. Explain and give
examples of nonlinear cost functions. 7. Distinguish
the cumulative average-time learning model from the incremental unit-time
learning model. 8. Be aware of
data problems encountered in estimating cost functions. WORKSHEETS, NOTES, QUESTIONS: 26, 28, 29 NOVEMBER 2 TEST FOUR CHAPTERS 8 AND 10 NOVEMBER 7 AND 9 CHAPTER 11: DECISION MAKING
AND RELEVANT ATION
Learning Objectives: At the end of
your study of Chapter 11, you will be able to: 1. Use the five-step
decision process to make decisions. 2. Differentiate relevant
from irrelevant costs and revenues in decision situations. 3. Distinguish between
quantitative and qualitative factors in decision-making. 4. Beware of two
potential problems in relevant-cost analysis. 5. Explain the
opportunity-cost concept and why it is used in decision-making. 6. Know how to
choose which products to produce when there are capacity constraints.
7.
Discuss
factors managers must consider when adding or discounting customers and
segments.
8.
Explain
why book value of equipment is irrelevant in equipment-replacement decisions.
9.
Explain
how conflicts can arise between the decision model used by a manager and the
performance evaluation model used to evaluate the manager. WORKSHEETS,
NOTES, QUESTIONS: 20, 31, 32
NOVEMBER 14
CHAPTER 17:
PROCESS COSTING
Learning Objectives: At the conclusion of your study of Chapter 17, you
will be able to: 1. Identify the
situations in which process-costing systems are appropriate. 2. Describe the five
steps in process costing. 3. Calculate equivalent
units and understand how to use them. 4. Prepare journal
entries for process-costing systems. 5. Use the
weighted-average method of process costing. 6. Use the First-in,
first-out method of process costing. 7. Incorporate standard
costs into a process-costing system. WORKSHEETS, NOTES, QUESTIONS: 24,
35, 36 NOVEMBER 16
TEST FIVE CHAPTERS 11 AND 17 NOVEMBER 28
PROJECT PRESENTATIONS NOVEMBER 30
GRADE DISTRIBUTIONS AND REVIEW FOR FINAL EXAM FINAL EXAM: 8:00 Class is on Thursday, December 7,
8-10 11:00 Class is on Thursday, December 7,
12:30-2:30 SCHEDULE OF DAILY WORKSHEETS FALL 2005 AUG 24: TELL ME ABOUT
YOURSELF; 1-20, 1-21 AUG 29: 2-16, 2-17 AUG 31: 2-28 SEPT 5: 3-17, 3-20 SEPT 7: 3-36 SEPT 14: 4-17, 4-18 SEPT 19: 4-30 SEPT 21: 5-16, 5-20 SEPT 26: 5-31 OCT 3: 6-17, 6-18, 6-19 OCT 5: 6-28 OCT 10: 7-16, 7-17 OCT 12: 7-32 OCT 19: 8-16, 8-17 OCT 24: 8-32 OCT 26: 10-22, 10-25 OCT 31 10-30 NOV 7: 11-16, 11-22 NOV 9: 11-29 NOV 14: 17-16, 17-19 NOV 16: Your Choice DEC 5: TELL ME ABOUT YOUR SEMESTER IN COST
ACCOUNTING I |