Advanced Cost Accounting ACNE 3216

Course description:

Advanced cost accounting involves the in-depth study of the principles and objectives of the techniques and theories used in cost accounting. Topics such as capital budgeting, manufacturing accounting, cost control systems, performance measurement, and quantitative techniques for planning and control will be discussed. The strategic and behavioral implications and impacts of planning and control will form the context for study.

Course Aims:

  • Learning Capital Budgeting techniques, net present value, internal rate of return, payback period, accrual accounting rate-of-return.
  • Inventory management: Economic order quantity, just-in-time.
  • Decision analysis, relevant information including qualitative and quantitative.
  • Theory of constraints.
  • Pricing decisions, long-run and short-run, target costing, target pricing, cost-based pricing, life-cycle costing.
  • Cost allocation, allocation of support departments, downward demand spiral, allocation of common costs and revenues, joint product costs.
  • Spoilage, rework, and scrap.

Course outcomes:

Upon completion of this course, students should be able to
  • Demonstrate an understanding of and an ability to apply advanced manufacturing cost accounting techniques.
  • Understanding how to manage inventory in a just of time manufacturing environment.
  • Demonstrate an understanding of and an ability to apply pricing decisions.
  • Understanding cost allocation of support departments, and allocation of common costs and revenues.
  • Understanding theory of constraints, and how to identify the constraint and restructure the rest of the organization around it.
  • How to account for spoilage, rework cost, and scrap.