AUSTIN COMMUNITY COLLEGE

Accounting Department

Course Master Syllabus

ACNT 2379

Advanced Cost Accounting

ACNT 2379 Advanced Cost Accounting:

Accounting related to the use of cost data for making managerial decisions. Includes budgeting, responsibility accounting, cost-volume-profit analysis, transfer pricing, statistical methods, and planning capital expenditures. Case studies and computer applications are integrated into the course. Prerequisite: Cost Accounting (ACNT 2309)

Required Texts/Materials:

For required texts/materials, go to http://www2.austincc.edu/accting/. Click on Textbooks and First Day Assignments.

Instructional Methodology:

The objectives of this course will be met by incorporating a variety of instructional methods. These include lecture, case studies, group activities, student presentations, research papers, and/or online accounting and tax database research, periodical research.

Course Objectives and Core Competencies:

At the end of this course, you will be able to:

Unit 1

1. Explain the requirements and preparations needed to become a CMA
2. Explain the advantages of being a CMA

Unit 2

1. Compute predetermined overhead rates
2. Explain the difference between a plantwide overhead application rate and multiple overhead rates
3. Demonstrate the nature and flow of costs
4. Identify types of pricing models (absorption, variable, direct, cost-plus, etc)
5. Use cost accounting information to support pricing decisions
6. Identify pricing issues involved with joint costing
7. Assess profitability of products and firms using financial data
8. Analyze a company’s product unit cost
9. Conduct a cost system pilot study
10. Provide strategic recommendations based on your cost system pilot study

Unit 3

1. Explain why organizations use transfer prices for products
2. Discuss advantages and disadvantages of cost-based transfer prices, market-based transfer prices, and negotiated transfer prices
3. Explain how multinational companies use transfer prices
4. Explain the position of the IRS on transfer pricing

Unit 4

1. Prepare a budgeted income statement
2. Prepare a budgeted balance sheet
3. Prepare a budgeted cash flow statement
4. Compute break-even level of sales based on budgeted amounts
5. Compute budgeted mark-up percentage based on total manufacturing costs
6. Analyze budgeted selling prices
7. Explain how to set up a budgeting and planning system
8. Explain how production and revenue constraints enter into the budget process

Unit 5

1. Evaluate capital projects based on net present value, sensitivity analysis, profitability index, and risk
2. Compute internal rate of return using spreadsheet software and interpret the results
3. Compute net present value
4. Make recommendations based on the IRR and NPV computations
5. Discuss the proper discount rate for IRR and NPV computations

Course Rationale:

The goals and objectives of this course prepare students for (1) obtaining or improving job skills, (2) qualifying for a business or accounting job, (3) achieving job advancement, completing the courses required for the Certified Public Accounting (CPA) exam (a minimum of an undergraduate (4 year) degree is required for the CPA exam), (4) preparing for accounting or business certification exams (CMA, CFA, CGFM, CIA, etc), (5) preparing for a master’s program, (6) working as an entrepreneur, (7) completing degree requirements and/or (8) fulfilling personal goals.

Scans Competencies:

The term scans is an acronym for the Secretary’s Commission on Achieving Necessary Skills. The U.S. Secretary of Labor commissioned a task force in 1990 to examine the demands of the workplace. The commission’s first report, “What Work Requires of Schools”, identified what employees need to know and be able to do in order to succeed in any occupation.

The following four SCAN competencies are incorporated into this course:

1. Interpret and communicate information –

· determine information to be communicated

· identify best methods to present information

· converts information to desired format

· convey information to others through a variety of means including oral and written presentation

2. Solve problems –

• Select and apply problem-solving methods
• Use inductive deductive reasoning to solve problems

3. Use computer to process information

• Employ computers to acquire, organize, and communicate information
• Enter, modify, retrieve, store, and verify data and other information in a computer
• Choose format for display

4. Participate as a member of a team

• Work cooperatively with others and contributes to a group with ideas, suggestions, and effort

Scholastic Dishonesty:

The following statement on scholastic dishonesty must be included: Acts prohibited by the college for which discipline may be administered include scholastic dishonesty, including but not limited to cheating n an exam or quiz, plagiarizing, and unauthorized collaboration with another in preparing outside work. Academic work submitted by students shall be the result of their thought, research or self-expression. Academic work is defined as, but not limited to tests, quizzes, whether taken electronically or on paper; projects, either individual or group; classroom presentations, and homework.

Students with Disabilities:

The following statement on students with disabilities must also be included: Each ACC campus offers support services for students with documented physical or psychological disabilities. Students with disabilities must request reasonable accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes. Students are encouraged to do this three weeks before the start of the semester.

Course Evaluation/Grading System, How to Reach the Instructor, and Course Outline/Calendar:

Refer to the Instructor’s syllabus for this course.