COST ACCOUNTING AND CONTROL I

ACG3341 Section 601

Syllabus Fall 2013

INSTRUCTOR:
OFFICE:
OFFICE
PHONE

Patricia Gaukel, CPA,

MAcc
Davis 108G

OFFICE HOURS:
MONDAY: 11:00 to 2:00
TUESDAY:
WEDNESDAY:
THURSDAY:
FRIDAY:

FAX:
EMAIL:
CLASSROOM

STG 124

TIME

Mon. 8:00 to 10:55 am

or by
appointment

COURSE DESCRIPTION:
Prerequisite and Grade Requirements:
ACG 2071: Principles of Managerial Accounting with a grade of C- or better.
Description:
This course deals with cost accounting systems for different entities, cost
behavior patterns, cost-volume-profit analysis, relevant information for decision
making, and budgets and standard costs for planning and control.
COURSE THEMES:
Managerial/cost accounting behavior patterns; costing methodologies, and
decision-making techniques.
Students will develop a basic understanding of:
I. Cost-Volume-Profit-Analysis
Calculate contribution margins
Understand fixed and variable costs
Perform and analyze break-even-point analysis
Calculate operating leverage
II. Costing
Evaluate costs and decisions using job costing
Evaluate costs and decisions using process costing
Evaluate costs and decisions using activity-based costing
Apply concepts of relevant costing
Apply concepts of strategic cost analysis

III. Budgeting
Differentiate between cost, responsibility and profit centers
Be able to analyze an operating budget
Calculate fixed and variable overheads using various costing methods
Calculate price and volume variances
Calculate spending and efficiency variances
Apply the concepts of variance analysis for control purposes
Develop flexible budgets
IV. Strategy
Identify various components of the strategic business plan
Align balanced scorecards with strategy
Perform a strategic analysis of operating income
V. Capital Management and Project Management
Identify costs and benefits of capital investments
Calculate the return on investments using various methods of discounted
cash-flow
Calculate the return on investments using non-DCF methods
Understand how project management and post-audits are used in
controlling capital acquisitions
VI. Other
Solve cost accounting problems using spreadsheets
Develop journal entries and T-accounts for the above objectives
Practice problems used on professional certification exams

ASSESSMENT TASKS:
Cost Accounting and Control I is the second in the Managerial Accounting series
of courses that are part of the accounting curriculum. This course is designed for
accounting and non-accounting majors. Many of the learning outcomes in this
course have been introduced in the prerequisite course, ACG 2071 (Managerial
Accounting). This course provides more in-depth application of those topics and
also introduces several new topics. The primary emphasis of this course is to
demonstrate how accountants assist in the companys financial and business
decisions. We will cover tools which help cost accountants provide relevant
information for management decision-making and control.
At the conclusion of the course, you should be able to use the Problem-Solving
Skills developed in this course to:
1.
2.
3.
4.

5.

Describe when managerial accounting is used and its usefulness

within the business community.
Prepare an income statement, budget and related variances for a
manufacturing, merchandising or service firm
Cost a product using job order, activity based or process costing.
Be able to make or support appropriate business decisions through the
preparation and analysis of break-even analysis, relevant costing and
capital budgeting techniques.
Perform variance analysis using actual and standard costing.

COURSE CONTENT:
The following managerial/cost accounting subject areas are intensively
addressed in this course:
Concepts:
Cost Accounting concepts and terms
Cost-Volume-Profit Analysis
Job order costing
Operational and cash budgeting
Flexible budgeting and variances
Standard costing and variances
Activity based costing
Relevant costing
Process costing
Capital budgeting
Strategy and balanced scorecard

10%
10%
10%
10%
5%
15%
10%
10%
5%
10%
5%

Skills:
Analyze cost accounting data and demonstrate how the behavior of these costs
affect product costs, profitability and management decision-making.
Recognize and apply managerial/cost accounting methodologies to the
preparation of management reports.
Apply decision-making skills to business transactions and prepare management
reports for budgeting and performance.
Analyze cost data and prepare variance reports for management decisionmaking.
Issues:
Properly applying managerial/cost accounting methodologies in the workplace to
prepare cost and variance reports.
Analyzing cost data and preparing profitability reports.
Analyzing business scenarios and preparing management reports for various
decision-making situations (e.g. break-even and target operating income,
adding/dropping a product line, make vs. buy, constrained resources).
Required/Supplementary Text(s):
The basic text for the class is Cost Accounting: A Managerial Emphasis (14th
edition) by Horngren et al., Prentice Hall. We will also be using the My
Accounting Lab software which does require an access code.
We will also be using a Harvard business case, Harvard Business Case,
Danshui Plant #2 (product # 913525-PDF-ENG). You may purchase this case
on your own by accessing Harvard Business School materials.
The bookstore will be stocking a custom package which is a soft cover edition
of only the chapters covered in Cost 1 from the book. This also includes the My
Accounting lab access code. This is labeled as ACG 3341 USFSP. The ISBN
for this text is 1269130773.
In addition, the bookstore will also stock another custom package, ISBN
1269130765. This package is the same as the custom package above PLUS the
Harvard business case. This is the package I suggest you purchase. It contains
ALL course materials necessary for Cost 1.

COURSE PACK:
I teach using PowerPoints, which are all included in Canvas. For your
convenience, we have created a course pack including all weeks PowerPoints.
This is available for purchase at the Barnes and Noble bookstore. Note you are
not required to purchase the course pack, you may print each weeks lecture
yourself. I have found the course pack to be convenient and economical.

Accounting Lab:
The publishers Accounting Lab is loaded into Canvas. You will see the various
modules on the left pull down menus within Canvas. The accounting lab gives
you the opportunity to practice questions and will prepare a customized study
plan for you based on homework answers. Our Pearson representative will be at
our first class to explain the uses of the Accounting Lab. Note that these
features are the same as My Math Lab that many of you have already
experienced.
For each chapter, we will have both regular homework (not graded) and graded
homework within the accounting lab. When you input your regular homework
(i.e. syllabus questions) solutions, the software will tell you whether you are
correct or not, and allow multiple attempts. You will also need to complete the
graded homework, which is 2-3 questions per chapter. The graded homework is
worth 5 points per chapter. The completion window for the graded homework
will be one week beginning the week that we cover the chapter in class and
ending at 8 am the following week.

ASSESSMENT AND GRADING

Task 1: (10%) Describe when managerial accounting is used and its usefulness
within the business community.
Task 2: (40%) Prepare an income statement, budget and variances for a
manufacturing, merchandising or service firm using actual or standard costing.
Task 3: (25%) Cost a product using job order, activity based or process costing.
Task 4: (25%) Be able to make or support appropriate business decisions
through the preparation and analysis of break-even analysis, relevant costing and
capital budgeting techniques.
Determination of Final Grade:
Exam I
Exam II
Exam III (non-comprehensive)
Computer problems(1)/quizzes (3)
Graded homework
Total
A=
360 to 400
B+ = 352 to 359
B=
320 to 351
C+ = 312 to 319
C=
280 to 311
D+ = 272 to 279
D=
240 to 271
F=
Below 240

100
100
120
30 (10 pts. each, best 3 out of 4)
50
400

The final grades may be curved at my discretion, depending on the performance of

the class as a whole.

Exams:
There will be three examinations. Exams will consist of multiple choice (both
computational and non-computational), computational problems, and essay
questions. Students will be expected to attend all exams. Make-ups will be given
only in emergency situations. You must discuss any reason for missing an exam
with the instructor in advance of the exam. Make-up exams must be taken at the
convenience of the instructor within one week of the scheduled exam. Failure to take
an exam without my prior approval will result in a grade of zero for the exam. The
exams include material from the text, whether or not it is covered in class, as well as
class lecture information.
We will review each exam in class after I have graded it, and I will then collect all
exam papers. You are then welcome to make an appointment to further review your
exam. Requests to regrade an exam will be honored only if the request is received
within one week of the date the exam is returned. No regrade requests will be
honored if received after this time limit. Except in the case of footing errors, the
entire exam will be regraded. All exam papers will be destroyed on February 1, 2014.
Computer Problem:
One computer problem will be assigned which requires the use of the personal
computer. If you are not already familiar with Excel, please complete a tutorial at the
computer lab. It is your responsibility to be able to set up problems from scratch
using spreadsheets. You will submit the assignments electronically using
Blackboard. I will give you specific instructions on completing the cases the week
before they are due. I will not accept any assignments late.
The computer assignments are to be prepared in groups of either 2 or 3 students.
Quizzes
We will have three quizzes during class. The quizzes will cover the preceding weeks
material and homework. You must be present in class to take the quiz; no makeups will be given. The quizzes and computer problem are worth 10 points each; I will
include the best 3 out of 4 grades in the computation of your final grade.
Graded Homework
Each week there are several questions pertaining to that weeks chapter that must
be completed using My accounting lab within canvas. These questions are worth 5
points per chapter.

Course Policies:
Student Preparation and Homework:
The material in this class is appropriately difficult for an upper level accounting class.
As such, you will understand the weekly lectures much better if you are well
prepared for class. This means 1) you have read the relevant chapter; and 2) you
have attempted to do that weeks homework. Student involvement is also highly
encouraged; we have many real-world examples presented in class and you will
learn much more if you participate.
Calculators:
Calculators, other than those which store formulas and/or text or which are
programmable, may be used on all exams. The use of cell phones to do
computations is not permitted on exams. In order to obtain partial credit on
problems, all supporting computations must be shown and labeled so that I can
follow your work.
Canvas:
All class lectures, grades, announcements etc. are posted within Canvas. You are
encouraged to print out the weeks lecture (or reference the course pack above) and
follow along during class. I suggest that you open the file using PowerPoint and print
the presentations full-size (Print/slides option).
Attendance:
It is extremely important that you attend regularly in order do well in this class. The
class lecture is meant to supplement the textbook reading. Also, I lecture on some
material which is not in the textbook. I do notice who attends class regularly!
Release of Grades:
I am not permitted to release any grades or exam scores over the telephone or by email. I will post the final grades on Canvas.
Cellular Phones and Laptops:
Cellular phones and laptop computers must be silenced during class. We will always
take a break during class so you can make calls. Also, NO TEXTING OR
INTERNET SURFING DURING CLASS; this is disruptive to your fellow students and
definitely to your instructor!!! Texting or internet surfing is cause for removal from
that class period.

TENTATIVE SCHEDULE
14th Edition
Date
Aug. 26

Chapter
1

Sep. 2

Topic
Introduction (Problem Solving skill 1)
NO CLASS LABOR DAY

Sep. 9

Sep. 16

Cost terms (Problem Solving skill 1)

Sep. 30
Oct. 7

Cost-volume-profit analysis (Problem

solving skill 4) GH chapter 2 due
4
Job order costing (Problem solving skill 3);
Review for Exam 1 GH chapter 3 due
Exam 1
GH chapter 4 due
6 including Budgeting (Problem solving skill 2)

Oct. 14

Oct. 21

Oct. 28
Nov. 4

Nov. 11
Nov. 18

11

Nov. 25

21

Dec. 2

17

Sep. 23

Dec. 9

Homework
1, 4, 8, 9, 12, 14, 18, 21,
23, 29

appendix

1, 2, 3, 5, 6, 7, 8, 11, 20,
21, 22, 26, 32, 34, 41, 42
3, 4, 8, 9, 10, 16, 20, 22,
24, 25, 27, 33, 46 Quiz 1
1, 8, 9, 12, 13, 20, 24,
28, 34, 37

6, 9, 11, 17, 18, 19, 22,

30, 31, 36, 37
Flexible budgets and variances for direct 3, 4, 5, 7, 11, 16, 17, 18,
materials and direct labor (Problem solving 21, 22, 24, 26, 27, 36
skill 2) GH chapter 6 due
Flexible budgets and variances for overhead 2, 9, 16, 17, 21, 24, 32, 37
(Problem solving skill 2); Review for Exam II
QUIZ 2 Business case
GH chapter 7 due
write up
Exam #2 GH chapter 8 due
Activity Based Costing (Problem solving skill 2, 7, 15, 18, 26, 29, 30
3), go over exam 2
NO CLASS VETERANS DAY
Relevant costing (Problem solving skill 4)
2, 8, 10, 16, 18, 20, 23,
25, 27, 28, 31, 33, 37
GH chapter 5 due
Hand out computer case
Capital budgeting (Problem solving skill 4), 3, 6, 7, 20, 21, 26, 27, 28
(1 and 2 only)
GH chapter 11 due
COMPUTER CASE DUE
Process costing weighted average only
Chapter 17: 1, 2, 3, 4, 6,
(Problem solving skill 2) GH chapter 21 due 14, 16, 17, 19, 20, 40 (1
only) Quiz 3
Final exam
GH chapter 17 due

Note: Last day to drop class November 2.

GH = Graded homework

Key Leadership Skill(s) and Perspectives Addressed in This Course:

Interpersona
l and
Communicat
ion Skills

Analytical and
Critical
Thinking Skills

Informati
on
Technolo
gy Skills

Reflective Ethical and

Thinking
Social
and
Consciousn
Experient
ess
ial
Learning
X

Multicultu
ral
Competen
ce

Analytical and Critical Thinking Skills: All classroom discussions, homework and
exams emphasize problem solving and data analysis skills.
Information Technology Skills- The computer problem requires the use of
spreadsheet software. Additionally, students must present the data and conclusions
in a meaningful manner.
Ethical and Social Consciousness: The course lecture and homework emphasize
ethical decisions in todays business world.
[2] UNIVERSITY/COLLEGE OF BUSINESS SECTION
Academic Dishonesty:
See USF Policy on Academic Dishonesty and Disruption of Academic
Process at www.ugs.usf.edu/catalogs/0304/adadap.htm
Because of the Universitys commitment to academic integrity, plagiarism or cheating
on course work or on examinations will result in penalties that may include a grade of
F for the specific exam or course work and a grade of F or FF for the course.
Any incident of academic dishonesty will be reported to the dean of the college.
Definitions and punishment guidelines for Plagiarism, Cheating, and Student
Disruption of the Academic Process may be found at the web address listed above.
Students with Disabilities:
Please notify your instructor if you have a learning disability or require special
assistance with this course. Confidential personal and learning assistance
counseling are made available to students through the Division of Student Affairs.
Contact R. Barry McDowell ([email protected]) for more information.
Religious Holidays:
Students who must miss an examination due to a religious holiday should
notify the instructor during the first two weeks of class.
Copyrights: Feel free to tape lectures, but tapes and lectures may not be sold.