COURSE OUTLINE
Course Title: Introduction to Cost and Management Accounting
Course Code: ACCT1003
Credits: 3
Year: 1
Course Description
This course is designed to sensitize students to an understanding of current cost and management accounting theory and practice. Emphasis is placed on the concepts and procedures of product costing, the tools of managerial accounting such as CVP analysis and budgeting, as well as, strategies that help the manager to perform the functions of planning, controlling and decision making.
The course makes use of some simple mathematical concepts that should have been grasped at the primary and secondary levels or in your Remedial Mathematics Course. These include the basic mathematical operations, solving simple linear equations and graphing linear functions. Students are urged to revise these concepts, as well as, to read ahead of teleconferences and tutorial sessions. The active participation of each group member during tutorial sessions is of paramount importance.
Course Objectives
On completion of this course, students should be able to:
i) Distinguish between cost accounting and financial accounting.
ii) Classify costs and with the aid of graphs, explain how these costs behave within a range of production
iii) Name the various inventory systems and methods and prepare the inventory records using each of these methods.
iv) Calculate the various inventory levels and explain the importance of each level.
v) Explain the impact of each inventory costing method on the income statement and the balance sheet, as well as their tax implications.
vi) Distinguish between the methods of product costing.
vii) Explain how process losses and gains are treated in the accounts.
viii) Use the principle of equivalent units to cost losses, finished and unfinished units.
ix) Explain the difference between ABC and traditional costing method.
x) Explain the difference between marginal costing and absorption costing.
xi) Cost products using marginal costing and absorption costing
xii) Prepare marginal/variable costing income statements
xiii) Explain the term "break-even point" and compute this level of activity using various mathematical techniques.
xiv) Prepare cash budgets (before financing) and related operating budgets
