ADVANCED COST ACCOUNTING I

Goal: To provide the students with the concepts, theories and application of costing methods so as to enhance their understanding on the treatment, use and the interpretation of cost accounting data.

GENERAL OBJECTIVES:

On completion of the course the students should be able to:

1.0 Understand the organization of Cost Accounting Department.

2.0 Understand elements of Costs.

3.0 Know the integration of Cost and Financial Accounts.

4.0 Understand basic Costing Methods.

5.0 Understand job and batch costing.

6.0 Understand contract costing.

7.0 Know process costing.

8.0 Know Service Costing.

9.0 Understand Uniform Costing.

1.1 Define Cost Accounting Department.

1.2 Explain the functions of a Cost Accounting Department.

1.3 Explain the administration of Cost Accounting Department.

1.4 Compare Cost Accounting Department to other Departments in an organization.

Describe and illustrate Cost Accounting Department with charts.

2.1 Explain elements of cost - materials, labour and overheads.

2.2 Explain inventory control procedures including EOQ model.

2.3 Define Just-in-Time (JIT) systems.

1. Illustrate with examples the components of costs.

2. Show how EOQ is calculated.

3.1 Define book keeping in cost accounting.

3.2 Prepare ledger accounts with interlocking.

3.3 Prepare integrated ledger accounts.

3.4 Reconcile Financial and Cost Accounting profit.

Demonstrate the preparation of integrated and interlocking accounts and the reconciliation of Financial and Cost Account profit.

4.1 Define specific order costing and operation costing.

4.2 List the sub-divisions of specific order costing.

4.3 List the sub-divisions of operation costing.

Explain and distinguish between specific order costing and operation costing.

5.1 Define Job costing.

5.2 Compute unit product cost.

5.3 Define Batch costing.

5.4 Compute unit cost of a product in a batch.

5.5 Post product costs to the accounts in the cost ledger.

Illustrate with computation the accounting process for Job and Batch costing.

6.1 Define contract costing.

6.2 Compute contract cost.

6.3 Prepare contract accounts.

6.4 Evaluate work in progress.

Define and illustrate the process of contract costing with examples.

7.1 Define process costing.

7.2 Calculate equivalent units of production.

7.3 Compile production cost.

7.4 Define scraps, wastes, normal and abnormal losses and gains.

7.5 Explain the treatment of scraps, wastes, normal and abnormal losses and gains.

7.6 Compute unit cost of production.

7.7 Evaluate work in progress using FIFO, and Weighted Average.

7.8 Prepare process accounts.

7.9 Define joint and byproducts.

7.10 Evaluate and apportion joint costs.

Illustrate with examples the calculation of equivalent of product cost and preparation of process accounts.

8.1 Define service costing.

8.2 Calculate cost per service unit.

Illustrate the calculation of cost per service unit.

Give gradable assignment.

9.1 Define uniform costing.

9.2 State the objectives of uniform costing.

9.3 State the features of uniform costing.

9.4 List the advantages and disadvantages of uniform costing.

Explain uniform costing and its uses drawing comparative analyses with other costing methods.