COURSE INFORMATION

Name Cost Accounting

Code EC-3101

Coordinating Faculty Faculty of Management Sciences

Level Basic
Credits 3
Pre-requisites Financial Accounting (EC-1102)
Delivery Method Lectures

Coordinator Saeed Gul

Contact Phone: 0782242554
Email: [email protected]

Schedule Link to course schedule and coordinator schedule for support

Coordinator Regulations Link to specific regulations set by each faculty for a specific course

COURSE DESCRIPTION
This course is designed to make the students familiar with the application of basic methods
and techniques of cost accounting. The course deals with the cost concepts, cost classification
and cost flows, material, labor, factory overhead costing.

LEARNING OUTCOMES
 Identify and calculate different types of costs (direct, indirect, variable, and fixed costs).
 Distinguish between job-costing, process-costing, and joint-costing systems.
 Determine the product cost by means of full- costing and direct-costing methods.
 Determine the product cost by means of historical (actual) and standard cost systems.
 Understand and explain material, labor, factory overhead costing and control

LEARNING RESOURCES
Text book:

Cost Accounting Planning and Control By Adolph Matz, Milton F. Usry, Seventh Edition

Reference Book:

Advanced Cost Accounting by Jain, S / Narang, k Rev. Edition

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COURSE SCHEDULE

Week Topics for Discussion Book / Suggested Remarks

No. Chapter Activity
1 Introduction to Cost Accounting Review of lecture
The concept management, Chapter No at home.
Definition and concept of cost, 1, Cost
Cost object, Cost elements, Cost Accounting
accounting v/s financial by Milton F.
accounting, Role of cost Usry
accounting in a management
information system, Uses of cost
data.
2 Cost Terms Concepts and Chapter No Practice
Classifications 1, Cost Questions
Manufacturing cost, direct Accounting
material, direct Labor, by Milton F.
Manufacturing Overhead, Prime Usry
Cost, Conversion Cost , Non
Manufacturing Cost , Product Cost
and period Cost
Comparison of Merchandising and
manufacturing Activities.
3 Fixed Cost, Variable Cost, Fixed Chapter No Practice
Cost per unit, Variable Cost per 2, Cost Questions
unit, Opportunity Cost, Sunk Cost, Accounting
Idle time, Overtime Premium by Milton F.
Usry
4 Cost, Expense, Classification of Chapter No Practice
Cost, Natural Classification of 2, Cost Questions
Cost, Elements of Cost, Prime Accounting
Cost, Conversion Cost by Milton F.
Fixed factory overhead, Variable Usry
factory overhead, Semi Variable
overhead
5 Direct Expenses, Indirect Chapter No Practice Quiz # 1
Expenses, Inventories for a 3, Cost Questions
Manufacturing Concern, Flow of Accounting
Manufacturing Cost, Cost of by Milton F.
Goods Statement Usry
6 Fundamentals of Cost Accounting Chapter No Practice Assignment
Information System, Chart of 4, Cost Questions #1
Accounts Accounting
Data Processing by means of the by Milton F.
Journal Voucher Control System Usry
The Manufacturing Cost
Accounting Cycle, Control
Account, Subsidiary Ledger or
Record, General Office, Factory
Office Records, Electronic Data
Processing
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7 Job Order Costing Chapter No Practice
Cost Systems Actual or Standard 5, Cost Questions
The Job Order Cost Procedure, Accounting
The Process Cost procedure by Milton F.
Usry
8 Job Order Cost Accumulation Chapter No Practice
Procedures, Job Order Cost Sheets 5, Cost Questions
Cost Accounting Procedures for Accounting
Materials, Cost Accounting by Milton F.
procedures for Labor, Usry
9 Cost Accounting Procedures for Chapter No
Factory Overhead, Estimated 5, Cost
Factory Overhead, Applied Accounting
Factory overhead, accounting by Milton F.
procedure for completed products Usry
and sold
10 Mid Term Examination
11 Process Costing Chapter No Practice
Characteristics and Procedures of 6, Cost Questions
Process Costing, Costing by Accounting
departments by Milton F.
Product Flow, Sequential Product Usry
flow, Selective Product flow
Procedures for Materials, Labor,
and Factory Overhead Costs,
Materials Costs, Labor Costs,
Factory overhead costs
12 The Cost of Production Report, Chapter No Practice Assignment
Quantity Schedule, Cost Charged 6, Cost Questions #2
to department, Cost Accounted Accounting
for as follows, Equivalent by Milton F.
Production, Unit Costs, Units Lost Usry
in the first department, Units Lost
in Department Subsequent to the
first, Timing of Lost Units, Normal
vs. Abnormal Loss of Units,
Combined Cost of production
Reports
13 Process Costing Chapter No Practice
Addition of materials, Average and 7, Cost Questions
FIFO costing , Beginning work in Accounting
process inventories, Average by Milton F.
costing, First in First Out (FIFO) Usry
Costing, Average Costing vs.
FIFO Costing, Difficulties
encountered in Process Cost
Accounting procedures
14 By-Product and Joint Product Chapter No Practice Quiz # 2
Costing 8, Cost Questions
Difficulties in Costing By-Product Accounting
and Joint Products, Joint Products by Milton F.
and Cost defined, By-Products Usry
defined, Nature of By-Products,
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 Methods of Costing By-Products,
Recognition of Gross Revenue
15 Recognition of Net Revenue, Chapter No Practice
Replacement Cost Method, Market 8, Cost Questions
Value Method, Accounting
Characteristics of Joint Products by Milton F.
and Cost, Methods of Allocating Usry
the Joint Production Cost, Market
or Sales value Method,
Quantitative Unit Method,
Average Unit Cost Method,
Weighted average method
16 Planning and Control of Factory Chapter No Practice
Overhead 9, Cost Questions
Factory Overhead Planned, Accounting
Applied and Actual with variance by Milton F.
analysis Usry
Factory Overhead Predetermined,
The use of Predetermined Factory
Overhead Rate,
Factors to be considered in
Selection of Overhead Rates, Base
to be used
Activity Level Selection, Factory
Overhead Actual, Steps in
Accounting for Actual Factory
overhead
17 Principal Original Records, Books Chapter No Practice Quiz # 3
of Original Entry, Factory 9, Cost Questions
Overhead Control Account, Accounting
Factory Overhead-Applied, Over by Milton F.
or Under Applied, and Variance Usry
Analysis, Disposition of Over or
under applied factory overhead
18 Departmentalization for Product Chapter No Practice
Costing and Cost Control 10, Cost Questions
The Concept of Accounting
Departmentalization, Production by Milton F.
and Service Departments Usry
Selection of Producing
Departments, Selection of Service
Departments
Direct Departmental expenses in
Producing and Service
Departments, Supervision,
Direct departmental charges,
Charge to Inventory, Repairs and
Maintenance, Equipment
depreciation, Indirect
Departmental expenses,
Establishing departmental
Overhead rates, Estimating direct
departmental expenses
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 Terminal Examination

ASSESSMENT
SUMMARY
TYPE PERCENTAGE RATIONALE
Internal Assessment
- Assignment 10% 25%
- Quiz 10%
- Others 5%
Program Assessment
- Midterm 25% 75%
- Terminal 50%

GRADING
MARK RANGE GRADE POINT GRADE EXPECTED RESULT
90 and above 4.0 A The percentage of class
expected to score this
grade.
80 – 89 3.0 B
70 – 79 2.0 C
60 – 69 1.0 D
59 and below 0.0 F

POLICIES & GUIDELINES

a. Plagiarism and copying of copyright materials are serious offences and may lead to
disciplinary actions.
b. The course enrolment is charged by the faculty office. Please approach the staff in the
faculty office for any queries about course enrolment, class quota, etc. In no
circumstances should you approach the lecturers who have no control on this.
c. Make-up test for mid-term: No Make Up chance is available to absent or Failed students.
d. There is no make-up session for the oral presentations and quizzes. If you are absent from
the oral presentation without eligible reasons/documents, you will not earn any marks on
the oral presentation. If you are absent from the oral presentation with eligible
reasons/documents, your score on the final exam will be applied higher weight (including
weight on final exam and mid-term test).

Conduct and Important Policies:

Any student found guilty of a breach of ethics will be subject to dismissal from the University.
a) Breach of ethics includes, but is not limited to plagiarism (the copying of other’s ideas and
passing them off as one’s own); copying or other forms of cheating on examinations, papers, and
reports; the sale, purchase, or distribution of term papers It is within an instructor’s discretion to
impose a lesser penalty, e.g., “zero” grade on a given assignment.
b) Course registration is charged by the management. Please approach the management for any
queries about course enrolment, class quota, etc.
In no circumstances should you approach the lecturers who have no control on this.

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c) Make-up exam for midterm and terminal exam is available only for those individuals, who are
not able to attend their exams for valid reasons. Usually make-up exam starts a week after the
regular exam finishes.
d) There is no make-up session for the oral presentations and quizzes. If you are absent from the
oral presentation/ quiz without eligible reasons/documents, you will not earn any marks.
e) All examinations and quizzes will be “closed book” unless otherwise instructed. At the time of
examination all students are requested to clear their desks and are not allowed exchanging any
notes or electronic (text) messages to other students. All cellular phones should be in silent mode
and student will not be allowed to use it during the examination other than medical/family/work
emergency. All students are expected to adhere to these policies and procedures.
f) There is no supplementary exam for any failed course. Individuals, who fail the course, must
retake the module.
Attendance:
Your regular and punctual attendance at lectures and seminars is expected in this course.
University regulations indicate that if students attend less than 70% of scheduled classes they
may be refused final assessment.