COURSE DESCRIPTION
This course explores the distinct nature of cost accounting compared to financial accounting, focusing on its role within managerial accounting. Students will study the theories, methodologies, and objectives of cost accounting and its importance in supporting a company’s long-term growth. The course will also examine how cost accounting contributes to both internal and external reporting and decision-making processes.
By the course’s end, students will master key cost accounting terms and understand how costs flow through various company accounts. Additionally, students will learn to apply cost accounting principles for both internal management and external reporting purposes. The course will provide insights into activity-based costing systems while addressing ethical issues that may arise in cost accounting practices.
Key Topics Covered
- Delineate How Cost Accounting is Utilized for Decision-Making and Performance Assessment: Understand how cost accounting data supports management decisions, improves operational efficiency, and assesses company performance over time.
- Recount the Primary Notion of Cost and How Costs Are Presented in Financial Statements: Explore the basic concept of cost and how different types of costs (fixed, variable, direct, indirect) are reported in the financial statements.
- Establish How Materials, Labor, and Overhead Costs Are Added to a Product at Each Stage of Production: Learn how raw materials, labor, and overhead are applied to products at various points in the production process, contributing to total production costs.
- Explore the Underlying Cost Flow Model and Be Able to Allocate Costs in a Job Cost System: Understand the flow of costs through different stages in a job costing system and accurately assign costs to specific jobs or projects.
- Communicate Expense Using Prearranged Rates and Activity-Based Costing (ABC): Develop the ability to use predetermined overhead rates and activity-based costing (ABC) to more accurately allocate indirect costs to products and services.
- Distinguish How Cost-Volume-Profit (CVP) Analysis Supports Planning and Decision-Making: Understand the similarities between cost-volume-profit analysis and other costing methods and apply CVP analysis to help plan and make informed business decisions.
- Prepare a Budget and Use It for Performance Evaluation: Learn how to prepare an effective budget, allocate resources to support performance goals, and assess achievement against the budget to improve financial planning and control.
REFERENCE MATERIALS
for
Full-CLC Students
Based on your HESEAP application, you have been awarded full CLC for this course, classifying it as a test-out course, meaning no traditional instruction will be provided. Your CLC award signifies that you possess knowledge, whether gained through prior education or experience, equivalent to or surpassing what would typically be learned in a traditional college setting. Consequently, classroom attendance is not required; however, you are required to successfully pass a final exam for the course.
USILACS remains committed to fostering your academic success. Should you find a refresher necessary or wish to deepen your understanding of the subject, it is recommended that you explore a variety of free online educational resources on the suggested topics below.
Thousands of FREE Online College Courses:
Search Topics: Publications/Videos/Papers
The majority of the exam questions for this course are based upon
information contained in the below search topics.
- (2018) Wikipedia. Cost Accounting. Available online at https://en.wikipedia.org/wiki/Cost_accounting
- (2018) Investopedia. Cost Accounting. Available online at https://www.investopedia.com/terms/c/cost-accounting.asp
- (2018) Investopedia. Cost Accounting. Available at https://www.investopedia.com/terms/c/cost-accounting.asp
- (2017) Cost Accounting – Definition, Purpose, Types, how it works? Available at https://www.youtube.com/watch?v=AwrwUf8vYEY
- (2019) “Difference between Cost and Financial Accounting.” Fairuz Embong. Available at https://www.youtube.com/watch?v=vqr-7z2MieQ
- (2014) “Financial Accounting vs. Managerial Accounting.” Edspira. Khan Academy. Available at https://www.youtube.com/watch?v=Ep7DqVxFHaY
- (2014) “Cost Accounting Overview.” Matt Evans. Available at https://www.youtube.com/watch?v=a5D3Iopi0-4
- (2014) “Sunk Costs.” Edspira. Khan Academy. Available at https://www.youtube.com/watch?v=-FzVxsUQ3_w&list=PL_KGEFWqEaTAswdGBQr2YwKDQoKz84iox&index=13
- (2013) “Job Order Costing – Part 1 – Management Accounting.” Tony Bell. Available at https://www.youtube.com/watch?v=HJMFaygeGP0
- (2012) Accounting for Managers. Kurt Hiesinger and Joe Ben Hoyle. Creative Commons. Available at: https://2012books.lardbucket.org/pdfs/accounting-for-managers.pdf
- 1.1 Characteristics of Managerial Accounting (pg. 9-10)
- 1.6 Cost Terminology (pg. 36-38, 41-42)
- 1.7 How Product Costs Flow through Accounts (pg. 49-51)
- 1.8 Income Statements for Manufacturing Companies (pg. 56-57, 62-63)
- 9.1 Planning and Controlling Operations (pg. 664-665)
Please note that USILACS is not the source of the above links; therefore, we do not have control over their accessibility. Some links may no longer be active, and in such cases, we encourage you to copy and paste the title into Google or YouTube to find an alternative source. Should you encounter an inactive link, feel free to contact our academic team at academics@usilacs.org for assistance or to notify them so the link can be updated.
Occasionally, the links may prompt you to download reference material in PDF format. While we have made every effort to ensure the safety of the sources, we encourage you to take precautions to verify the security of any downloads on your device.
Although comprehensive study materials have been provided, you can search for the topics and titles on Google and YouTube if additional resources are needed.
Tips for Success
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