Courses Catalogue

Cost Accounting

COURSE CODE: ACC 2203
COURSE CREDIT UNIT: 3
ACADEMIC PROGRAMME: Business Administration (Finance & Banking)
COLLEGE/SCHOOL/FACULTY: College of Economics and Management
STATUS: Core
PROGRAMME TYPE: Undergraduate

Course Content and Outline

COURSE CONTENT

Introduction

  • Nature and scope of cost accounting
  • Definition of cost Accounting
  • Costing and Costing Accounting
  • Distinction between Cost Accounting, financial Accounting and management Accounting
  • Scope of cost Accounting
  • Objectives of cost Accounting
  • Advantages of cost Accounting
  • Cost system standard costing, Historical and Uniform costing
  • Utilities and limitations of each method
  • Conditions for effective costing system

Cost Analysis, Concepts and Classification

  • Elements of cost definition of key terms and cost classification
  • Responsibility centres
  • Cost build up
  • Cost statement – Definition, purpose and preparation
  • Coding systems – Features of good coding system, advantages of a good coding system


Store keeping and stock control

  • Definition of store keeping
  • Types of stores- centralized decentalised and imprest stores.
  • Advantages and disadvantages of stores maintenance
  • Need for stock control, reasons for holding stocks
  • Stores records stores ledger, Bin cards etc
  • Stock taking – types of stocktaking
  • Advantages and disadvantages of each method
  • Stock levels computation minimum stock level, maximum stock level, Re- Order quantity, E. O. Q Economic Order Quantity, Stores Turnover

Material pricing / costing

  • Definition of material costing
  • Key terminology in material costing
  • Material costing methods, FIFO (First in First Out), LIFO (Last in First Out), WAP (Weighed Average). Standard Price, Replacement NIFO (Next in First Out) Advantages and disadvantages of each method.

Labour costing

  • Definition of labour costs
  • Types of labour, direct and indirect labour
  • Labour techniques Work study, work measurement, Job Evaluation, Merit Rating Job Analysis.
  • Advantages and limitations of each
  • Time recording methods
  • Methods of labour remuneration
  • Premium bonus scheme computations
  • The payroll preparation and prevention of fraund, allocation of labour cost.
  • Labour turnover, causes and control, measurement of labour turnover

Accounting for overheads

  • Definition of overheads, allocation of overheads, allotment of overheads
  • Preparation of overheads Analysis sheet
  • Primary Apportionment
  • Secondary Apportionment
  • Absorption of overheads
  • Blank vs. departmental absorption rates
  • Over and under recovery of overheads

Budgeting and Budgetary control

  • Definition of budget
  • Distinction between
  • Budgeting and budgetary control
  • Budgets and standard costs
  • Advantages of budgets
  • Types of budgets fixed, flexible, balanced, surplus and deficit
  • Preparation of Budgets
  • Advantages and Disadvantages of Budgets

Review of costing systems

  • Joint and by product costing
  • Batch costing
  • Job costing
  • Contract costing
  • Process costing
  • Process costing
  • Absorption and variable costing

MODE OF DELIVERY

  • Lectures
  • Reading assignments
  • Practical assignments
  • Field trips
  • Documentaries


INSTRUCTIONAL MATERIALS AND / OR EQUIPMENT

·         Whiteboard and Markers

·         Flip Charts

·         LCD Projectors

·         CDs, DVDs and Tapes