Acctg 338   Cost Accounting

Course Overview
Accounting is the language of business, the method for scorekeeping, and ultimately the basis on which most business decisions are made. You will need to understand the concepts in this class and be able to use them in a strategic manner to be truly effective in any business role.

Good business managers are expected to understand how functional areas such as marketing, finance, operations, and management intersect with accounting decisions. Managers are now expected to understand accounting not only to better manage the firm's resources but also to control activities occurring within the organization.

This course focuses equally on information production and its use in management decisions.
3 credits.

Course Objectives
When you successfully complete this course, you will have developed and/or enhanced the following skills:
  1. Using CVP to make financial decisions concerning product or project viability.

  2. Able to clearly understand the CVP diagram & how to calculate any variable included in the model.

  3. Principles and implications of overhead allocation under job and ABC (Activity Based Costing).
    a.  Components of manufactured cost.
    b.  Calculation of overhead allocation rate.
    c.   Identification issues related to cost driver selection.
    d.  Calculation and disposition of over and under applied overhead.
    e.  Situations where ABC costing is appropriate.

  4. Basic budgeting processes and how they affect hte organization.
    a.  Creating pro forma financial statements using planning assumptions.
    b.  Generic formulas for calculating budgeted needs.
    c.  Creating cash flow budget.
    d.  Management issues surrounding budget creation and implementation.
    e.  Evaluate plans and budgets to determine the source of performance deviations.

  5. Understand how management accounting helps companies implement and evaluate their strategies.

  6. Understand and create a Balanced Scorecard.

Course Prerequisites
Acctg 231; MgtOp 215; Math 107 or 201; Math 202; MIS 250



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