Cost Accounting

AC 223—Winter, 2007

 

Meeting Time:    7:45—8:50 am M W F      Instructor:  Paul Magnall

 

Place:  Business Center 116                         Office:  Business Center 108

 

Office Phone:   352-8428                             Home Phone:  352-2197  (Before 10 PM)

 

Office Hours:   M     1:152:30 PM                    e-mail:  Paul.magnall@wartburg.edu

                                T     8:309:20 AM

                               W   10:4511:50 AM

                                H     1:002:15 PM

                                F      9:0010:05 AM             

 

PREREQUISITES:  Principles of Accounting II (AC122), and Fundamentals of College Math (MA107); Statistical Methods (MA214) recommended

 

TEXTBOOK: Cost of Accounting:  Foundations and Evolutions, by Kinnney, Prather-Kinsey, Raiborn.  Sixth Edition.  Thomson Publishing.  Only the book is required.

 

COURSE OBJECTIVES:  "Cost accounting fundamentals and applications to decision making: relationships of cost, volume and profit; standard costs; variance analysis; activity based costing; quantitative methods and models used in cost accounting."  (From the college catalog). 

 

This is a required course for Accounting Majors and an elective course for Finance Majors.  Its purpose is to familiarize the student with cost accounting techniques and procedures.  Students should be able to apply these concepts to the preparation and understanding of cost accounting reports.  As the manufacturing environment responds to world-wide competition, the cost accountant must answer the demand for expanded and more precise accounting information.

 

ASSIGNMENTS: 

Listed below are the chapters of the textbook that will be covered during the semester. 

 

Chapter 2—Cost Terminology and Cost Behaviors

 

Chapter 3—Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing

 

Chapter 9—Break-Even Point and Cost Volume Profit Analysis

 

Friday, February 2, 2007------EXAM 1

 

Chapter 4—Job Order Costing

 

Chapter 5—Activity Based Management and Activity Based Costing

 

Chapter 6—Process Costing

 

Friday, February 23, 2007-------EXAM 2

 

Chapter 7—Standard Costing

 

Chapter 10—Relevant Information for Decision Making

 

Chapter 11—Allocation of Joint Products and Accounting for By-Products

 

Monday, March 26, 2007------Exam 3

 

Chapter 16—Implementing Quality Concepts

 

Chapter 18—Emerging Management Practices

 

Chapter 19—Performance Measurement, Balanced Score Cards, and Performance Rewards

 

8:0010:00 am on Tuesday, April 17, 2007-----Final Exam Period

                             (1) Unit exam on chapters 16, 18, &19

                             (2) Comprehensive Final Exam (50 MC questions)

 

Other Class Schedule Issues:

1.  Monday, January 15th is Martin Luther King Day—class will meet for only 50 minutes that day.

2.  Winter term break is means that we will not have class on March 5, March 7, or March 9.

3.  Easter Break means that we will not have class on Friday, April 6 or Monday, April 9.

 

Here are the assignments for the first unit:

Monday, January 8, 2007

            Introduction to the Course

            Review of Principles of Accounting II Material

 

Wednesday, January 10, 2007

            Lecture on Chapter 2

 

Friday, January 12, 2007

            Professor Magnall Will Not Be Attending that Day.

            Instead you are to work together in groups of 3 or 4 (self-selected) on the following exercises

at the end of Chapter 2—8, 11, 12, 25

Each group should submit one copy of their group’s work at the end of Friday’s class period

 

Monday, January 15, 2007—Martin Luther King Day—Class meets from 7:458:35 today.

            Discussion of exercises 19, 28, 33, 36 from Chapter 2

 

Wednesday, January 17, 2007

            Lecture on Chapter 3

 

Friday, January 19, 2007

            Discussion of exercises 16, 20, 26, 29 from Chapter 3

               

Monday, January 22, 2007

            Discussion of exercises 35, 41, 42, 43 from Chapter 3

 

Wednesday, January 24, 2007

            Lecture on Chapter 9

 

Friday, January 26, 2007

            Discussion of exercises 8, 12, 16, 24, 26 from Chapter 9

               

Monday, January 29, 2007

            Discussion of exercises 35, 37, 43, 45 from Chapter 9

 

Wednesday, January 31, 2007

            Review Day for Exam 1

            Special Assignment on cost volume profit is due

 

Friday, February 2, 2007

            Exam 1—students can start the exam at 7:30, but must finish at 8:50.

 

Monday, February 5, 2007

            Lecture on Chapter 4

 

Wednesday, February 7, 2007

            Discussion of exercises 8, 12, 20, 24 from Chapter 4

 

Friday, February 9, 2007

            Discussion of Exercises 30, 35, 40 from Chapter 4

            Lecture on Chapter 5

 

EVALUATION PROCESS:  Students will be evaluated on 4 unit exams, a comprehensive final exam, & special assignments.  The scheduled exam days are included in the assignments above.

 

Unit Exams (80% of the final grade) will include multiple choice questions and computational problems.  I will try to provide a SAMPLE exam as discussion material for the review day for the first exam.

 

Other Assignments (20% of the final grade):  It is expected that six special assignments to will be distributed and then evaluated by the instructor.  With assignments 2—5, there will be several versions of these assignments and students are to complete the one that is distributed to them.  Students are NOT to collaborate on these assignments—doing so is will be considered a violation of academic integrity.  Questions on these assignments should be directed at the instructor rather than your classmates. 

 

Tentative Plan of the topics of these assignments:

1.  Chapter 2 assignment from Friday, January 12

2.  Problem on Cost Volume Profit Analysis due on Wednesday, January 31, 2007

3.  Problem on Activity Based Costing

4.  Problem on Joint Costs and By-Products

5.  Problem on a Balanced Scorecard

 

Your final grade will be based on the following percentage scale:

The Wartburg College grading system allows for the assignment of +'s and -'s.  These additional designations will be made by the instructor at the end of the semester for scores in the upper end (+) and lower end (-) of each grade category.

 

 
                                    90 -- 100%    A

                                    80 --   89%    B

                                    70 --   79%    C

                                    60 --   69%    D

                                    Under 60%    F

 

 

NO FOOD OR DRINK IS ALLOWED IN THE CLASSROOM

Respect your fellow classmates and eat your breakfast before coming to class!

 

ATTENDANCE:  Attendance of class sessions in not directly related to the evaluation process of the course.  It is the instructor's expectation that students will attend all class sessions if at all possible and the instructor will note absences on the seating chart. Examinations cannot be made up without proper notice prior to the exam period.

 

On Monday, January 15, 2007, a seating chart will be prepared based upon where students are sitting on that day.  The purpose of the assigned seating is

 

Ø      for the instructor to take note of who is in class each day

Ø      for the students to become comfortable with their position in the class

Ø      to aid the instructor in learning students' names and faces

Ø      to aid in the return of evaluated materials

 

ACADEMIC INTEGRITY:  By attending Wartburg College, students are demonstrating their dedication to the Honor Code.  The Honor Code reminds students of their responsibility to promote academic honesty by opposing cheating and plagiarism and reporting dishonest work.  Failure to comply with the Honor Code could result in the student receiving an F for the course.

 

Cheating on an exam or any other evaluated item will not be tolerated. Anyone suspected of cheating on such evaluations will discuss the incident and the consequences with the instructor.  It is the responsibility of other students to report violations of this rule.  The penalty for such conduct could range from a zero on the evaluation to an immediate removal of the student from the course with a failing grade.

 

GENERAL CONDUCT IN CLASS:  Hats are not to be worn during exams or presentations.  PDAs and other hand-held devices are not allowed during exams—you can use a calculator during an exam, but not the other devices.  Students are not to leave the room without permission during exams.  As a courtesy to others, please turn off cell phones and other electronic devices during all class activities.  

  

SPECIAL NEEDS:  The Americans with Disabilities Act of 1990 (ADA) provides protection from illegal discrimination for qualified individuals with disabilities.  Students requesting instructional accommodations due to disabilities must arrange for such accommodations by contacting the Dean of Students Alexander (Lex) Smith.  He can be reached at the Student Life office, Wartburg College, Luther Hall 206, 352-8260, <Alexander.smith@wartburg.edu>.  Accommodations should be requested PRIOR to affected assignment due dates.