
Cost Accounting
Code: 102374Credits: 6
| Degree programme | Type | Course |
|---|---|---|
| Business Administration | OB | 2 |
Contact lecturer
- Name :
- John Slof
- Email :
- ericjohn.slof@uab.cat
Teaching staff
- Monday Nweke Igwe
- Celine Françoise Marie Gayet
- Immaculada Vilardell Riera
- Gemma Seda Gombau
Group languages
You can consult this information at the end of the document.
Prerequisites
Before taking this course, it is recommended to have followed the course Introduction to Accounting.
Objectives
- Provide basic understanding of the economic and financial context of cost accounting and management accounting, and to introduce students to its basic terminology and purposes.
- Help students discover and learn to use the relationship between costs, activity level and profit of a business.
- Describe the logic of cost accumulation for inventory valuation and profit measurement.
- Introduce students to the absorption and contribution approaches to income statement preparation.
- Make students aware of the conceptual intricacy of indirect costs and familiarize them with the main methods used in practice to allocate these costs to cost objects.
Learning outcomes
- CM57 (Lead work teams, in terms of good time management, organisation and planning.) Lead work teams, in terms of good time management, organisation and planning.
- CM59 (Apply accounting solutions that demonstrate ethical behaviour in the preparation of financial statements.) Apply accounting solutions that demonstrate ethical behaviour in the preparation of financial statements.
- KM54 (Recognise the qualitative variables that can influence decision-making based on financial statements.) Recognise the qualitative variables that can influence decision-making based on financial statements.
- SM58 (Prepare information relating to a management accounting system.) Prepare information relating to a management accounting system.
- SM59 (Interpret an entity's financial indicators, understanding the decisions that can be made based on their analysis.) Interpret an entity's financial indicators, understanding the decisions that can be made based on their analysis.
- SM60 (Generate the necessary information for each accounting problem.) Generate the necessary information for each accounting problem.
- SM61 (Use the tools of an organisation's financial planning and budgeting process.) Use the tools of an organisation's financial planning and budgeting process.
Contents
TOPIC 1. INTRODUCTION
1.1. Why do organizations incur costs, and why do they need to know them?
1.2. Differences between Financial Accounting and Management Accounting
1.3. The role of Cost Accounting in Financial Accounting and Management Accounting
1.4. The concept of costs in accounting and economics
1.5. Types of resources used by organizations and the fixed or variable nature of their costs
1.6. Key activities and internal organization of service, merchandising and manufacturing companies
TOPIC 2. ALLOCATION OF COSTS BETWEEN DIFFERENT COST OBJECTS
2.1. The choice of a cost object and the costs to be assigned
2.2. Direct and indirect costs
2.3. Alternative methods for the allocation of indirect cost
2.4. “Full” costs
TOPIC 3. THE COMPANY'S PRODUCT AS THE COST OBJECT
3.1. Full and partial costing systems
3.2 Full costing and period costs vs. product costs
3.3. Total costs and unit costs
3.4. Price, revenues, gross margin, operating income, and profit
3.5. Inventories and their valuation
3.6. Costs of unused capacity
3.7. Implications for the accounting information system
TOPIC 4. COST ALLOCATION BETWEEN DEPARTMENTS
4.1. Operating and support departments
4.2. Worksheets for allocating costs between departments
4.3. Full costs of the final product
4.4. Implications for the accounting information system
TOPIC 5. COSTING OF PRODUCTS AND SERVICES: PROCESS COSTING
5.1. Average costs vs. individualized costs
5.2. Process costing systems
5.3. Work in process and equivalent units
TOPIC 6. COSTING OF PRODUCTS AND SERVICES: JOB ORDER COSTING
6.1. Job costing systems
6.2. Alternatives for the pooling of indirect costs and their allocation
6.3. Cost accumulation; actual costs and budgeted costs
6.4. Hybrid costing systems
TOPIC 7. COST-VOLUME-PROFIT ANALYSIS
7.1. Cost drivers and the causal relationship with output
7.2. Fixed and variable costs with regard to the level of activity
7.3. The role of time for cost behavior
7.4. Unit price and contribution
7.5. Break-even point and safety margin
7.6. Cost structures and operating leverage
7.7. Analysis in multiproduct settings
7.8 Multilevel contribution analysis, articulated by product lines, customers, markets, regions, etc.
Learning activities and methodology
| Title | Hours | ECTS | Learning outcomes |
|---|---|---|---|
| Self study | 89 | 3.56 | |
| Class sessions - theory | 32.5 | 1.3 | |
| Class sessions - practice | 17 | 0.68 | |
| Tutoring | 7.5 | 0.3 |
In this course theoretical presentations by the instructor will be combined with the discussion of cases and readings and the solution of practical exercises. On a regular basis students will be assigned readings and problems, and they are expected to prepare these in advance of or during class sessions, as instructed.
Assessment
Continuous assessment activities
| Title | Weight | Hours | ECTS | Learning outcomes |
|---|---|---|---|---|
| Exercises | 20% | 0 | 0 | CM57, CM59, KM54, SM58, SM59, SM60, SM61 |
| Partial exam 2 | 40% | 2 | 0.08 | CM59, KM54, SM58, SM59, SM60 |
| Partial exam 1 | 40% | 2 | 0.08 | CM59, KM54, SM58, SM59, SM60, SM61 |
This subject does not offer the option for comprehensive evaluation.
During the semester there will be two partial exams and generally every week exercises will be collected. Each partial exam and the whole of the exercises will be scored with a grade between 0 and 10.
The final grade of the subject will be obtained from the weighted average of the grades of the two partial exams (each weighing 40%) and the exercises (20%). This calculation of the average is conditional on having achieved at least a grade of 4 out of 10 on each of the partial exams. In the case of not complying with this condition, the final grade of the subject will be calculated as the lower value between 3.4 and the weighted average of the two partial exams and the grade for the exercises.
The grade for the exercises is conditional on continued participation in this activity; in case of delivering less than 75% of the assigned work, the deliveries made will not be considered and the grade for the exercises will be a zero. If an exercise is assigned to be solved in class, it will only be collected during that particular class session; therefore, such exercises cannot be handed in before or after the session, nor can they be handed in on behalf of the student by a third person.
For those students who have not participated in one of the partial exams, or who have not passed the minimum grade of 4, required for averaging, there will be a recovery of the pending tests. In these cases, only the pending exams can be recovered, and the grades obtained for the exercises and the other exam will be kept. To be considered in the calculation of the overall grade, the grade in the recovery of a partial exam must be at least 5.
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All students are required to perform the evaluation activities. If the student's grade is 5 or higher, the student passes the course and it cannot be subject to further evaluation. If the studentgradeis less than 3.5, the student will have to repeat the course the following year. Students who have obtained a grade that is equal to or greater than 3.5 and less than 5 have a second chance. The lecturers will decide the type of the second chance examination. When the second examination grade is greater than 5, the final grade will be a PASS with a maximum numerical grade of 5. When the second examination grade is less than 5, the final grade will be a FAIL with a numerical grade equal to the grade previously achieved in the course (not the second chance examination grade).
A student who does not perform any evaluative task is considered “not evaluable”, therefore, a student who performs a continuous assessment component can no longer be qualified with a \"not evaluable\".”
Calendar of evaluation activities
\"The dates of evaluation activities cannot be modified, unless there is an exceptional and duly justified reason why an evaluation activity cannot be carried out. In this case, the degree coordinator will contact both the teaching staff and the affected student, and a new date will be scheduled within the same academic period to make up for the missed evaluation activity.\" Section 1 of Article 264. Calendar of evaluation activities (Academic Regulations UAB). Students of the Faculty of Economics and Business, who in accordance with the previous paragraph need to change an evaluation activity date must process the request by filling out an exam rescheduling request.
Grade revision process
After all grading activities have ended, students will be informed of the date and way in which the course grades will be published. Students will be also be informed of the procedure, place, date and time of grade revision following University regulations.
Retake Process
\"To be eligible to participate in theretake process, it is required for students to have been previouslybeen evaluated for at least two thirds of the total evaluation activities ofthe subject.\" Section 2 of Article 261. The recovery (UABAcademic Regulations). Additionally, it is required that the student has achieved an average grade of the subject of at least 3.5.
The date of the retake examwill be posted in the calendar of evaluation activities of the Faculty. Students who take this exam and pass, will get a grade of 5 for the subject. If the student does not pass the retake, the grade will remain unchanged, and hence, student will fail the course.
Irregularities in evaluation activities
In spite of other disciplinary measures deemed appropriate, and in accordance with current academic regulations, \"in the case that the student commits any irregularity that could lead to a significant variation in the grade of an evaluation activity, it must be graded with a 0, regardless of the disciplinary process that can be instructed. In case various irregularities occur in the evaluation of the same subject, the final grade of this subject will be 0\". Section 11 of Article 266. Results of the evaluation. (UAB Academic Regulations).
For this subject, the use of Artificial Intelligence (AI) technologies is permitted exclusively for support tasks, such as bibliographic or information searches, text correction, or translations. The student must clearly indicate which parts have been generated using this technology, specify the tools used, and include a critical reflection on how these tools have influenced the process and the final outcome of the activity.
FAILURE TO BE TRANSPARENT ABOUT THE USE of AI in this subject will be considered a breach of academic honesty and may result in partial or full penalization in the grading of the affected activity, or more severe sanctions in serious cases.
The completion of assessment activities is subject to the provisions set out in this course guide and in the "Policy of the School of Economics and Business on the Detection of Irregularities during Assessment Activities", which regulates the conditions under which assessment tasks are conducted and the procedures applicable in cases where indications of irregularities are detected. Students are encouraged to consult the policy.
Bibliography
Bibliografia bàsica en negreta
Asociación española de contabilidad y administración de empresas. La contabilidad de gestión. Serie de principios de contabilidad de gestión. AECA. Most recent edition.
Atkinson AA, Banker RD, Kaplan RS, Young SM. Management Accounting. Prentice-Hall. Most recent edition.
Bhimani A, Horngren CT, Datar SM and Rajan M. Management and Cost Accounting. Pearson. Most recent edition. - Ebook available
Datar S, Madhav R, Horngren's Cost Accounting: A Managerial Emphasis, Global Edition, Pearson Education, Limited. Most recent edition. - Ebook available
Drury C. Management and Cost Accounting. Thomson Learning. Most recent edition.
Donoso Anes R, Donoso Anes A. Sistemas de costes e información económica. Pirámide. Most recent edition.
Mallo Rodríguez C, Jiménez Montañés MA. Contabilidad de costes. Pirámide. Most recent edition.
Nicolàs P. Costes para la dirección de empresas. Servei de publicacions UAB. Most recent edition.
Rosanas JM. Contabilidad de costes para la toma de decisiones. Desclée de Brouwer Editorial. Most recent edition.
Software
MS Office
Course groups and languages
The information provided is provisional until November 30. After this date, you will be able to consult the language of each group through this link. To access the information, you will need to enter the course CODE
| Type of teaching | Group | Language | Semester | Shift |
|---|---|---|---|---|
| (TE) Theory | 2 | Catalan/Spanish | first semester | morning-mixed |
| (TE) Theory | 4 | English | first semester | morning-mixed |
| (PAUL) Classroom practices | 21 | Catalan | first semester | morning-mixed |
| (PAUL) Classroom practices | 22 | Catalan | first semester | morning-mixed |
| (PAUL) Classroom practices | 41 | English | first semester | morning-mixed |
| (PAUL) Classroom practices | 42 | English | first semester | morning-mixed |
| (TE) Theory | 52 | Catalan | first semester | afternoon |
| (TE) Theory | 60 | Catalan | first semester | morning-mixed |
| (PAUL) Classroom practices | 521 | Catalan | first semester | afternoon |
| (PAUL) Classroom practices | 522 | Catalan | first semester | afternoon |
| (PAUL) Classroom practices | 601 | Catalan | first semester | morning-mixed |
| (PAUL) Classroom practices | 602 | Catalan | first semester | morning-mixed |