COURSE DESCRIPTION

Prerequisite is ACC 212 or equivalent. Presents cost accounting methods and reporting as applied to job order, process, and standard cost accounting systems. Includes cost control, profit analysis, and other topics. Lecture 3 hours per week.

GENERAL COURSE PURPOSE

ACC 231 is designed for the student in the Accounting Program or a student who wishes to improve accounting knowledge and skill for personal use, job improvement, or as preparation for job qualification. It is normally taken in the second year after successful completion of the first year of college accounting. The course is designed to explore various methods, techniques and terminology used in cost accounting for both the job order cost system and the process cost system. The student will develop skill in the collection of cost data, the application of this data to appropriate journals and ledges, the preparation of feeder reports and statements supplied to management for decision-making and briefing.

COURSE OBJECTIVES

Upon completion of this course, the student will be able to:

A. Apply knowledge learned in the first year and this course to be a complex situation, relating newly-acquired knowledge to the previous accounting knowledge. Application and skill development will be increased by careful preparation of assigned homework, problems, full explanations of correct procedures by the instructor, interpretation of textual material and extensive class discussion.

B. Understand the cost accounting terminology, the elements of the job order cost system, the process cost system and preparation of journal entries, ledger accounts and statement preparation.

C. Reinforce the knowledge by application to the assigned homework which will be graded and returned.

D. Learn the place of the cost accountant in the business organization, the importance of the cost accounting information system to the performance and success of all levels of management, and the nature and scope of cost accounting as applied to various manufacturing processes.

E. Apply his knowledge of job order and process cost systems to simulate real-life situations, combining this knowledge with material from other courses. This application will cover inventory control, purchasing, payroll procedures, determination of overhead cost and application of these costs to various job orders and processes, culminating in the preparation of proper reports for submission to higher management levels to assist in making decisions.

F. Develop a level of proficiency where he or she will be able to recognize opportunities for application of cost accounting principles and procedures.

G. Analyze a situation and apply the best method of cost accounting to the situation to develop adequate cost records and reports to assist management in the decision-making process.

H. Recognize cost principles and procedures.

I. Determine when further refinement of these principles are necessary.

J. Do the necessary research to implement improvements to the cost accounting system in effect.

K. Prepare the student for employment as a junior accountant or for further study in accounting in having him develop good work habits, logical thought processes, deductive reasoning and problem-solving ability. The accuracy of the problem-solving should be 90% or better.

A. The relationship of cost accounting and the cost accountant to the accounting profession and the management hierarchy, and ultimately to society in general.

B. The importance of developing cost centers and apportioning the indirect or fixed costs to these centers as well as the more readily identifiable direct or variable costs.

C. Developing methods which make the flow of costs from the job site to the accounting office direct, quick, and simple so that the cost accountant obtains correct and vital information to prepare reports.