OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

Republic of the Philippines

TARLAC STATE UNIVERSITY
Office of the Vice President for Academic Affairs
College of Business and Accountancy
Accountancy Department

VISION Tarlac State University is envisioned to be a premier university in Asia and the Pacific.

Tarlac State University commits to promote and sustain the offering of quality and programs in higher and advanced education
ensuring equitable access to education for people empowerment, professional development, and global competitiveness.

Towards this end, TSU shall:

1. Provide high quality instruction trough qualified, competent and adequately trained faculty members and support
MISSION staff.
2. Be a premier research institution by enhancing research undertakings in the fields of technology and sciences and
strengthening collaboration with local and international institutions.
3. Be a champion in community development by strengthening partnership with public and private organizations and
individuals.

E – xcellence
Q - uality
U - nity
CORE VALUES I - ntegrity
T - rust in God, Transparency & True Commitment
Y - earning for Global Competitiveness

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 OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

Program Goals
To produce competent and ethical professional accountants, with an attitude of “learning to learn,” capable of adapting to change, and providing relevant contributions to the profession
and society in which they work.
Program Outcomes
GRADUATE should be able to:
1. Resolve business issues and problems with a global and strategic perspective using knowledge and technical proficiency in the areas of financial accounting and reporting, cost
accounting and management, accounting and control, taxation, and accounting information systems;
2.Conduct Accountancy/Accounting Information System research through independent studies of relevant literature and appropriate use of accounting theory and methodologies;
3. Employ technology as a business tool in capturing financial and non-financial information, generating reports and making decisions;
4. Apply knowledge and skills to successfully respond to various type of assessments; and (including professional licensure and certifications); and
5. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions as an accountant.

Course Name COST ACCOUNTING AND CONTROL AND STRATEGIC COST MANAGEMENT (AFAR 1)
Course Credits 6 units
Course Description This course is designed to orient the students to the cost accounting and cost management framework of business. Topics discussed are: overview of cost
accounting; cost concepts and cost behavior; manufacturing cost accounting cycle; activity-based costing; variable and absorption costing; costing
methods: job and process cost systems; accounting, planning, and control for materials, labor, and overhead; accounting for joint and by-product costs;
standard costing and variance analysis;
Contact Hours/ week 6 hours
Prerequisite FAR 1 & 2
Course Outcomes After completing this course, students must have demonstrated:
1. Familiarity with the nature, scope, context, classifications of costs and its importance in decision making and relationship of cost accounting to
other field of accounting.
2. (Use of) Knowledge on preparation, analysis and interpretation of job order cost sheet and cost of production report for product costing, and
various cost accounting methods such as activity-based, back-flush, standard costing, etc.
3. Understanding of the cost management concepts in materials, labor and factory overhead.
4. Competence in preparing, analyzing and interpreting job order cost sheet and cost of production report, materials, labor and overhead accounting,
planning and control, and favorable or unfavorable variances under given circumstances.

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 OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

COURSE OUTLINE AND TIMEFRAME

Course Content/Subject Matter

Wee 1 1. Cost concepts and cost behavior
k
Wee 2-3 2. Activity-based and variable costing
k
Wee 4-5 3. Job order costing
k
Wee 6 4. Accounting for materials (with JIT and backflush costing)
k
Wee 7 5. Accounting for labor
k
Wee 8 6. Accounting for factory overhead
k
Wee 9 Midterm Exam
k
Wee 10 -11 7. Standard costing and variance analysis
k
Wee 12 - 15 8. Process costing
k
Wee 16 -17 9. Joint product and by-product costing
k
Wee 18 Final Exam
k

Alignment of Course Outcomes with Summative Assessment Tasks

Course Objectives Summative Assessment Task Details

Familiarity with the nature, scope, context, classifications Attendance
of costs and its importance in decision making and
relationship of cost accounting to other field of accounting. Oral Exercises
(Use of) Knowledge on preparation, analysis and Group Presentation
Attendance is measured by the registration or signing -in of the students to the
online class.
Oral Exercises can be done on a scheduled basis or by surprise relating to
topic at hand or topic to be discussed as diagnostic assessment for student

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

interpretation of job order cost sheet and cost of before discussion.

production report for product costing, and various cost
accounting methods such as activity-based, back-flush,
standard costing, etc.
Understanding of the cost management concepts in
materials, labor and factory overhead.
Competence in preparing, analyzing and interpreting job
order cost sheet and cost of production report, materials,
labor and overhead accounting, planning and control, and
favorable or unfavorable variances under given
circumstances.
Formative Examinations
Summative Examinations
Group presentation is a group activity of students that discuss or give lecture
on the assigned topic. The group may use slides, videos or other presentation
aid.  
Patterned to the Licensure Examination of Certified Public Accountants
(LECPA), the traditional way of assessing students earned knowledge is
through the conduct of the formative and summative examinations. Formative
examinations will be conducted per topic or group of related topics. While
summative examinations are divided into two, midterm examination and final
term examination. It can be done either through the traditional proctored pen
and paper test (if permitted by circumstances) or automated examinations with
the use of technology or electronic media websites and various application for
test measurements (if face to face is not allowed). To achieve the outcomes
expected from the accounting graduates, the formative and summative
assessments can be done in multiple choice questions, true or false, essay,
problem solving, creating financial statements, working papers or reports, and
the likes.

LEARNING PLAN

Course Content/Subject Textbook/ Flexible Teaching and Assessment of Time

Desired Learning Outcomes (DLOs) Resource Materials
Matter References Learning Activities (FTLAs) Tasks (ATs) Table
Explain the role of the students, the Introduction to Blended/ TSU Code Online Discussion of the Poll LMS and other Week
faculty and the TSU administration in Flexible Learning as applied Student Manual pertinent preliminaries in Questioning educational 1
the conduct of blended/ flexible learning. to Tertiary Education. College Code the conduct of (Optional - platforms
i. Students Role Various TSU Memo blended/flexible learning as Bonus Points) (MS Teams, Zoom,
ii. Instructors Role and Guidelines in applied to Tertiary Facebook, etc.)
TSU Administration Role the conduct of Education.
blended / flexible

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

learning.

1. Define and explain the term cost object 1. Cost concepts and cost Carter, Cost Use of online lecture Attendance Internet connection Week
and give examples of cost objects behavior Accounting 14th (Slides, Videos and Online 1
relevant to different types of decisions edition. Thomson discussion) Oral Electronic device
a) Management, the Asian Edition Exercises /
2. Describe several degrees of cost controller and cost Group LMS and other
traceability implied by the terms direct accounting Guerrero Use of scheduled and Presentation educational platform
cost and indirect cost. unannounced oral (MS Teams, Zoom,
b) Cost concept and exercises Formative Facebook, etc.)
3. Classify an expenditure as fixed, classification of costs Examinations
variable, or semi-variable. Printed Module
c) Classifying costs Student group Summative
4. List reasons for separating fixed and Presentation  Examinations Video Links
variable costs. d) Separating fixed and
variable costs Use of work exercises Slides
5. Compute the fixed and variable such as theoretical
components of costs by the use of high- application and problem
low and least squares method. solving

1. Define activity-based costing and 2. Activity-based and Carter, Cost Use of online lecture Attendance Internet connection Week
activity-based management and variable costing Accounting 14th (Slides, Videos and Online 2-3
distinguish them from traditional edition. Thomson discussion) Oral Electronic device
analysis of costs. a. Levels of costs and Asian Edition Exercises /
drivers Group LMS and other
2. Identify the circumstances in which Rodelio S. Roque, Use of scheduled and Presentation educational platform
activity-based costing gives more b. Comparison of ABC and Management unannounced oral (MS Teams, Zoom,
credible results than traditional product traditional costing Advisory Services exercises Formative Facebook, etc.)
costing. Examinations
c. Strategic advantage of Guerrero, Cost Printed Module
3. Identify different levels of costs and ABC accounting Student group Summative
drivers in activity-based costing and Presentation  Examinations Video Links
give examples of each. d. Strengths and
weaknesses of ABC Use of work exercises Slides
4. Calculate product costs using activity- such as theoretical

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

based costing and reconcile them with e. Conventional and application and problem
a traditional system’s product cost. variable costing income solving
statement
5. Know the difference and salient
features of variable costing. f. Arguments for and
against the use of
6. Understand the difference between variable costing
variable costing and absorption or
conventional costing methods.

7. Prepare income statements using

variable and absorption costing.

8. Reconcile absorption costing income

with variable costing income.
1. Define and explain purpose, nature, 3. Job Order Costing Carter, Cost Use of online lecture Attendance Internet connection Week
characteristics of a job order cost Accounting 14th (Slides, Videos and Online 4-5
system. a) Overview of Job edition. Thomson discussion) Oral Electronic device
order costing Asian Edition Exercises /
2. Perform job order cost accumulation Group LMS and other
b) Elements of product Guerrero Use of scheduled and Presentation educational platform
3. Identify and prepare the eight basic costs unannounced oral (MS Teams, Zoom,
cost accounting entries involved in job exercises Formative Facebook, etc.)
order costing. c) Product flow Examinations
Portfolio Journal
4. Prepare a job order cost sheet. d) Job order cost sheet Student group Summative
Presentation  Examinations Printed Module
5. Use a predetermined overhead rate in e) Production losses
job order costing. Use of work exercises Video Links
such as theoretical
6. Recognize job order cost sheets in a application and problem Slides
variety of forms. solving
Case Study and
related articles
1. Describe a system of materials 4. Accounting for materials ( Carter, Cost Use of online lecture Attendance Internet connection Week

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

procurement and use. with JIT and Backflush Accounting 14th (Slides, Videos and Online 6
costing) edition. Thomson discussion) Oral Electronic device
2. Identify components of the cost of Asian Edition Exercises /
acquiring materials. a) Materials procurement Group LMS and other
and use Use of scheduled and Presentation educational platform
3. Define and calculate economic order unannounced oral (MS Teams, Zoom,
quantity, order point and safety stock. b) Quantitative models exercises Formative Facebook, etc.)
Examinations
4. Describe JIT production system and c) Materials control Portfolio Journal
contrast it with traditional production. Student group Summative
d) Just-in-time Presentation  Examinations Printed Module
5. State the relationship between JIT
and backflushing. e) Backflushing Use of work exercises Video Links
such as theoretical
6. Prepare journal entries and T application and problem Slides
accounts for backflush accounting. solving
Case Study and
related articles
1. Discuss the importance and nature of 5. Accounting for labor Carter, Cost Use of online lecture Attendance Internet connection Week
productivity, and productivity’s Accounting 14th (Slides, Videos and Online 7
relationship to labor costs. a) Productivity and labor edition. Thomson discussion) Oral Electronic device
costs Asian Edition Exercises /
2. Explain the design and application of Group LMS
incentive wage plans. b) Incentive wage plans Use of scheduled and Presentation (MS Teams, Zoom,
unannounced oral Facebook, etc.)
3. Explain and apply learning curve c) Time standards and exercises Formative
theory. learning curve theory Examinations Portfolio Journal

4. State the necessary organization for d) Organization for labor Student group Summative Printed Module
labor cost accounting and control. cost accounting and Presentation  Examinations
control Video Links
5. Account for fringe benefits, payroll Use of work exercises
taxes, and other labor-related e) Accounting for such as theoretical Slides
deductions. personnel-related costs application and problem
solving Case Study and

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

related articles
1. Describe the concept of 6. Accounting for Factory Carter, Cost Use of online lecture Attendance Internet connection Week
departmentalization. Overhead Accounting 14th (Slides, Videos and Online 8
2. Distinguish between service and edition. Thomson discussion) Oral Electronic device
producing departments. a) Departmentalization Asian Edition Exercises /
3. Define direct and indirect Group LMS and other
departmental costs and give b) Producing and service Use of scheduled and Presentation educational platform
examples of each. departments unannounced oral (MS Teams, Zoom,
4. Compute and use departmental exercises Formative Facebook, etc.)
overhead rates. c) Direct departmental Examinations
5. Accumulate actual departmental costs Portfolio Journal
overhead costs. Student group Summative
d) Indirect departmental Presentation  Examinations Printed Module
costs
Use of work exercises Video Links
e) Establishing and using such as theoretical
departmental overhead application and problem Slides
rates solving
Case Study and
f) Actual factory overhead related articles
- departmentalized
MIDTERM EXAMINATION Week
9
1. Know and understand the nature, 7. Standard Costing and Rodelio S. Roque, Use of online lecture Attendance Internet connection Week
concept, uses, and development of Variance Analysis Management (Slides, Videos and Online 10 - 11
standards and standard costs. Advisory Services discussion) Oral Electronic device
a) Nature of standard Exercises /
2. Compute actual costs, standard costs costs Group LMS and other
and variances. Use of scheduled and Presentation educational platform
b) The standard cost unannounced oral (MS Teams, Zoom,
3. Analyze and interpret variances so that system exercises Formative Facebook, etc.)
management may be guided in making Examinations
the right economic decision. c) Direct material Portfolio Journal
variances Student group Summative
4. Understand the concept of capacity Presentation  Examinations Printed Module

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

and prepare fixed and flexible budget, d) Direct labor variances

particularly for factory overhead costs. Use of work exercises Video Links
e) Factory overhead such as theoretical
5. Have an idea of the accounting variances application and problem Slides
treatment of standards. solving
Case Study and
related articles
1. Calculate the equivalent units for 8. Process Costing Roberto M. Use of online lecture Attendance Internet connection Week
direct materials, direct labor and Filamor, BBA, (Slides, Videos and Online 12 - 15
overhead using the FIFO and a) Process cost CPA, Process Cost discussion) Oral Electronic device
weighted average method. accumulation Accounting Exercises /
Group LMS and other
2. Calculate the cost per equivalent unit b) Cost of production Pedro P. Guerrero, Use of scheduled and Presentation educational platform
using the FIFO and weighted average report Cost Accounting unannounced oral (MS Teams, Zoom,
method. Principles and exercises Formative Facebook, etc.)
c) Process costing with Procedural Examinations
3. Calculate the amount of cost to a FIFO cost flow Application Portfolio Journal
assign to goods completed and assumption including Student group Summative
transferred out (also known as cost of accounting for Norma D. De Leon, Presentation  Examinations Printed Module
goods manufactured) using production losses Ellery D. De Leon,
equivalent units and cost per Guillermo M. De Use of work exercises Video Links
equivalent unit. d) Process costing with Leon Jr., Cost such as theoretical
a Weighted Average Accounting and application and problem Slides
4. Calculate the amount of cost to cost flow assumption Control solving
assign to ending goods in process Case Study and
inventory using equivalent units and related articles
cost per equivalent unit.

5. Prepare a process cost summary

report under the weighted average
method.
1. Distinguish by-products from joint 9. Joint Product and By- Roberto M. Use of online lecture Attendance Internet connection Week
products. product costing Filamor, BBA, (Slides, Videos and Online 16- 17
CPA, Process Cost discussion) Oral Electronic device
2. Define joint cost. a) By-products and Accounting Exercises /

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

Joint products Group LMS and other

3. Assign cost to by-products by different defined Pedro P. Guerrero, Use of scheduled and Presentation educational platform
methods. Cost Accounting unannounced oral (MS Teams, Zoom,
b) Methods of costing Principles and exercises Formative Facebook, etc.)
4. Allocate joint production cost to joint by-products Procedural Examinations
products by different methods. Application Portfolio Journal
c) Methods of allocating Student group Summative
5. Evaluate the relationship of joint costs joint production costs Norma D. De Leon, Presentation  Examinations Printed Module
to decision making and profitability to joint products Ellery D. De Leon,
analysis. Guillermo M. De Use of work exercises Video Links
Leon Jr., Cost such as theoretical
Accounting and application and problem Slides
Control solving
Case Study and
related articles
FINAL TERM EXAMINATION Week
18

Suggested Readings Carter, Cost Accounting 14th edition. Thomson Asian Edition
and References Cost Accounting- Kinney, Raiborn and Carter (Compilation Version) 2013
Rodelio S. Roque, Management Advisory Services
Pedro P. Guerrero, Cost Accounting Principles and Procedural Application
Norma D. De Leon, Ellery D. De Leon, Guillermo M. De Leon Jr., Cost Accounting and Control
Roque, R.S. Management Advisory Services. 16th Edition
Roberto M. Filamor, BBA, CPA, Process Cost Accounting

Course
Requirements
Grading System STUDENT PERFORMANCE EVALUATION Weight Grade Equivale Description Remarks Grade Equivalence Description Remarks
nce
Attendance and Oral Exercises 15% 1.00 98-100 Excellent Passed 3.00 75% Passing Passed
%

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

Formative Examinations and/or Group 40% 1.25 95-97 Excellent Passed 3.50 75-78% C. Failure C. Failure
Presentation
Summative Examinations 45% 1.50 92-94 Very Good Passed 4.00 71-74% C. Failure C. Failure

TOTAL 100% 1.75 89-91 Very Good Passed 5.00 Failed Failure Failed

Credit Grade (Final Grade) = (Midterm 2.00 86-89 Good Passed DRP Dropped Dropped Dropped
Grade + Final Term Grade) / 2

Abide by the BSA Retention Policy to

qualify for BS Accountancy Program.

2.25 83-85 Good Passed INC Incomplete Incomplete Incomplete

2.50 80-81 Good Passed UD Unofficially Failure Failed

Dropped
2.75 78-79 Satisfactory Passed

Policies Online/ Flexible Teaching and Learning:

1. Microsoft Teams will be used as the primary platform in every class; thus, all students are advised to download and install the aforementioned
application. Just go to office.com. and login using your @student.tsu.edu.ph account, choose Teams from the list of applications, from there your
enrolled subjects will appear;
2. To uphold delivery of quality instruction, the class may also use added online platforms and applications like Zoom Cloud Meeting, FB
Messenger, Telegram and the like.
3. There are specific periods or schedules wherein synchronous learning shall be required. The student shall be ready as such to attend the said
scheduled meeting and make the necessary adjustments to be able to attend and be present.
4. Plagiarism in case of copyrighted articles is strictly prohibited and direct copying of classmates work will be sanctioned by not accumulating any
points, both on the part of the two or more parties involved.
5. Required output such as the Portfolio Journal for work exercises shall be submitted on the scheduled time stipulated or announced by the
instructor in charge. Failure to do so will render your portfolio non admissible for grading purposes.

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OBTL Plan AFAR 1 – Cost Accounting and Control and Strategic Cost Management

Course Title: AY/Term of Effectively: Prepared by: Reviewed by:

COST ACCOUNTING AND AY: 2020-2021

CONTROL AND STRATEGIC MR. VAL LAWRENCE V. FLORES, PROF. HENRY D. RUFINO, CPA, MBA
COST MANAGEMENT (AFAR 1) 1st SEMESTER CPA Chairperson
Faculty

Recommending Approval:

DR. JHONEL C. PANLILIO, CPA

Dean

Approved:

DR. ERWIN P. LACANLALE

Vice President for Academic Affairs

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