Universitat Internacional de Catalunya
Cost Accounting
Other languages of instruction: English, Spanish
If the student is enrolled for the English track then classes for that subject will be taught in the same language.
Teaching staff
By appointment
Introduction
It is virtually impossible for managers to function without information. Information is vital for the management process, and accounting is one of the major information systems within any organisation. Managerial accounting studies the generation, communication, and interpretation of internal information, both financial and non-financial. A sound understanding of managerial accounting is absolutely necessary for managers to fulfil their organisational roles responsibly and competently. The course covers the use of accounting information for planning and control purposes in both operational and strategic decision-making.
The management process includes the following main activities: (1) planning, (2) decision-making and (3) monitoring. We will examine these three activities in detail over the semester.
Pre-course requirements
It is recommended that students have completed and understood the courses Accounting 1 and Information Systems.
Relation to other disciplines: managerial accounting is linked to other disciplines. As you go through this course, think about connections to your other areas of study. How does strategy affect the choice of performance measures? How does accounting information support strategy-making in companies? How can accounting information support a marketing plan that is based on meeting customer expectations for delivering quality and performance. Along with financial accounting and finance, cost accounting is also a very important subject for the successful development of a new business plan (Final Degree Project).
Objectives
The following key topics will be emphasised:
- Importance of managerial information systems to support an organisation’s strategy.
- Job costing and process costing.
- Cost methods for inventories.
- How to manage indirect costs: departmental model and activity-based costing.
- Revenue-cost behaviour and cost-volume-profit analysis.
Competences/Learning outcomes of the degree programme
- 04 - To understand and know how to use financial terms within a business framework.
- 19 - To analyse quantitative financial variables and take them into account when making decisions.
- 29 - To know what an information system is and its typology.
- 32 - To acquire problem solving skills based on quantitative and qualitative information.
- 33 - To be able to search for, interpret and convey information.
- 37 - To be able to apply managerial methods, tools and techniques.
- 52 - To develop interpersonal skills and the ability to work as part of a team.
- 53 - To acquire the skills necessary to learn autonomously.
- 54 - To be able to express one’s ideas and formulate arguments in a logical and coherent way, both verbally and in writing.
- 63 - To be able to analyse business related behaviour and decisions and evaluate them from an economic, social and ethical point of view.
- 64 - To be able to plan and organise one's work.
Learning outcomes of the subject
On completion of the course students should be able to:
1. explain why organisations need to know how much products, processes and services cost and why they need costing systems;
2. explain the concept of a direct cost and an indirect cost; the different existing costs.
Syllabus
Chapter 1 Introduction to Management Accounting
Chapter 2 Cost Classification
Chapter 3 Direct and Variable Costing Systems and Cost-Volume-Profit Analysis
Chapter 4 Section Costing Systems
Chapter 5 Order Costing Systems
Chapter 6 Process Costing Systems
Chapter 7 Activity-Based Costing Systems
Chapter 8 Budgeting
Teaching and learning activities
In person
* This course material focuses on active learning by solving problems, mainly the discussion and resolution of exercises and case studies, supplemented by explanations from the lecturer and assigned reading. Students will discuss and solve problems in each class.
* Individual or group work. All projects and case studies must be submitted in electronic form, in order to become familiar with spreadsheets, an essential tool in the business world. Work submitted after the deadline or of poor academic quality will not be accepted.
* Participation in class.
* Teamwork: articles and presentation of case studies.
Evaluation systems and criteria
In person
Final exam: 40%
- Minimum of 5 out of 10 to pass the subject
- It is required to pass this exam to get the average with the rest of activities
- There will be a 2nd chance examination of this final exam
Continuous evaluation: 60%
- Mid–term exam: 30%
- Final Project: 20%
- Class participation and exercises: 10%
Bonus points: up to +0.5 out of 10
- Depending on the results of Kahoot tests in class
Bibliography and resources
Horngren, C.T., S.M. Datar and G.Foster (1994). Cost Accounting: A managerial emphasis, 12th ed. Pearson Prentice Hall. ISBN 0-13-149538-0
Horngren, C. T., A. Bhimani, G. Foster and S. M. Datar (1999) Management and Cost Accounting, 9th ed., Upper Saddle River, NJ: Prentice Hall.
Davila A. and D.Oyon (2009). MFD, Malea Fashion District: A new way to learn managerial accounting. Vease Ediciones. ISBN 978-84-612-8317-0
Amat y Soldevila (2009) Contabilidad y gestión de costes. Profit.
Lucey, T. (2007): Costing, Thomson Learning, Londres.
Rosanas, J. M. (1994): Contabilidad de costes para la toma de decisiones. Desclée de Brouwer, Bilbao.
ACCID (2010): Noves tendències en control i reducció de costos, Monografia de la Revista de Comptabilitat i Direcció, Barcelona.
Drury, C. (2012): Management and Cost Accounting, 8th edition, Cengage Learning, Hampshire.