Cost Accounting –

acc227

(3 credits)

ACC 227 introduces students to the concepts and decision-making issues of cost accounting. Emphasis is placed on management, analysis, business strategy, and implementation. Topics include cost terms and purposes, budgeting, job costing, pricing, and cost management.

This undergraduate-level course is 9 weeks. To enroll, speak with an Enrollment Advisor.

Topics and Objectives

Cost Accounting Fundamentals
- Describe the importance of cost accounting in managerial decisions.
- Describe the relationship between cost-volume-profit analysis and a company's financial decisions.
- Explain business functions in the value chain.
- Differentiate among manufacturing-, merchandising-, and service-sector companies.
Cost Terms and Purposes
- Differentiate among direct, indirect, variable, and fixed costs.
- Use cost-volume-profit analysis to plan variable and fixed costs.
Budgeting
- Assess the advantages and disadvantages of an activity-based costing system.
- Differentiate between an operating budget and an activity-based budget.
Costing
- Distinguish between job costing and process costing.
- Apply actual and normal costing processes.
- Apply the seven-step job costing process.
Budget Variances
- Determine the causes of over- and under-applied overhead variances.
- Develop a flexible budget.
- Calculate flexible budget variances.
Manufacturing Costs
- Analyze indirect manufacturing costs.
- Identify cost drivers that impact cost objects.
- Prepare income statements using absorption costing and variable costing.
- Differentiate between throughput, variable, and absorption costing.
Pricing
- Identify relevant and irrelevant costs in a decision-making scenario.
- Examine why opportunity cost is used in decision making.
- Summarize the three major influences on pricing decisions.
- Explain the difference between short- and long-run pricing decisions.
Cost Information for Decisions
- Explain how companies use target costing to price products.
- Estimate cost functions.
- Discuss data problems encountered in estimating cost functions.
Operating Cost Systems
- Solve professional ethics scenarios in relation to management accounts.
- Apply principles of cost accounting to an existing company.

The University of Phoenix reserves the right to modify courses.
While widely available, not all programs are available in all locations or in both online and on-campus formats. Please check with a University Enrollment Advisor.
Transferability of credit is at the discretion of the receiving institution. It is the student’s responsibility to confirm whether or not credits earned at University of Phoenix will be accepted by another institution of the student’s choice.

Cost Accounting –

acc227

Cost Accounting Fundamentals

Cost Terms and Purposes

Budgeting

Costing

Budget Variances

Manufacturing Costs

Pricing

Cost Information for Decisions

Operating Cost Systems

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