Hamdard University Bangladesh
Cost Accounting II
Course Code: ACT 413
Credit Hour: 3
Course Group: Specialization Course: Accounting
Manufacturing Overhead Costing: Definition of overhead cost, allocation method of overhead cost, allocation of service costing to manufacturing departments, mixed cost, separation of mixed cost, high-low method.
Activity-Based Costing: Traditional costing and ABC costing, application of ABC costing, cost drivers, allocation of cost using traditional and ABC method, limitation of traditional costing, advantage of ABC costing.
Process costing- Weighted Average and FIFO: Process costing applying Weighted Average and FIFO methods, Process costing with multiple departments, journals, JIT on Process costing.
Process costing- Additional Materials, Spoilage and Defective Units: Process costing applying Additional Materials, Spoilage and Defective Units, normal loss and abnormal loss, accounting for rework, accounting for scrap materials and waste.
Joint Product and By-Product: Definition of Joint product and by product, split-off point, joint cost and common cost, assigning joint cost, accounting for by product, decision making for further process or not to process.
Standard costing and variance Analysis: Definition, advantage, importance in decision making, standard costing for materials, materials price variance, materials use variance, materials quantity variance, labor rate variance, labor efficiency variance, standard overheads rate, overheads variance analysis with different tools.
Target Costing and Theory of Constrain: Definition of Target costing, value engineering, Kaizen costing, Theory of constrain, Identify the key constrains, throughput and steps in the analysis of theory of constrain.
Life Cycle costing, Strategic Cost Management and Quality Costing: Definition of life cycle costing, strategic cost management, creating and sustaining in competitive situation, value chain framework, value chain analysis, Definition of quality cost, reporting quality cost information, using quality cost information, controlling quality cost.
Service Costing and Marketing Cost Analysis: Definition, need in business, advantages, transport costing, power costing, canteen costing, hospital costing, costing method for educational institute, air bus costing, Definition, objectives, ABC system for marketing cost analysis, standards for marketing cost, drives for marketing activities, variance analysis, price variance and activity variance.
Cost Control for Discretionary Cost, Operation costing, Back-flush costing and Project costing: Definition of Operation costing, Back-flush costing and Project costing, importance, application in business, Cost control system, committed vs. Discretionary Cost, benefits from Discretionary Cost, controlling Discretionary Cost.
Text Books
Cost Accounting- L. Gayle Rayburn (latest edition)
Cost Management- Hansen & Mowen (latest edition)
Study Materials- Advanced Cost Accounting-ICMAB
Reference books
Cost Accounting- Shane Moriarity and Car P. Allen (latest edition)
Cost Management- Bolcher, Chen and Lin (latest edition)
Cost Accounting – C. T. Horngren (latest edition)
Cost Accounting – Barfield, Raiborn and Kimmy (latest edition)