ACC 2101: INTRODUCTION TO COST ACCOUNTING

PRE-REQUISITE: INTERMEDIATE ACCOUNTING I

DETAILED COURSE OUTLINE

Trimester: TRIM 2, 2022

Credit hours: 3 HOURS

Lecturer’s Name: RISPAH K. OMUCHEYI

Tel. Contact: 0714007181

Email: romucheyi@kcau.ac.ke

Contact Time: SAT 5: 30 P.M.

Course Purpose

The course introduces the basic principles of cost estimation and cost accounting usingmarginal costing,
product costing, job costing,

Expected Learning Outcomes

At the end of the course, the students will be able to:

a) Define and explain terms, concepts and classifications of costs.

b) Apply various cost accounting techniques

c) Advice on the suitability of a specific costing method.

COURSE CONTENT

WEEK TOPIC SUB TOPICS

1 Nature and purpose of cost
accounting
2 Cost Terms, Concepts and
 Introduction, definitions and scope of cost
accounting.
 Advantages and purpose of cost accounting
 Limitation of cost accounting
 Cost behavior patterns
 classification
 Cost classifications
3& 4 Cost elements;  Introduction to cost elements and cost sheet
Material Costing  Purchasing systems
 Inventory cost control system (Economic Order
Quantity Model)
 Pricing of material (receipts and issues of material)
5 Cost elements;  Labour cost time sheet and clock cards
Labour Costing  Direct and indirect labour costs
 Characteristics of a sound wage system
 Methods of wage payment systems

6 COMPREHENSIVE CAT
7&8 Cost elements;  Definition of overheads
Overhead Costing  Overhead allotment
 Overhead apportionment
 Overhead absorption
9 – 11 Costing Methods  Absorption and marginal costing,
 Product costing
 Job order costing
 Batch costing
 Introduction to process costing
 Service costing
12– 13 END OF TRIMESTER EXAMS

SUBMISSION OF ASSIGMENTS

Deadlines for submission of assignments should be strictly adhered to and failure to submit all
assignments will be treated as incomplete coursework. The consequence is a fail grade and one will be
required to repeat the unit when next offered. To avoid this unfortunate occurrence, please submit your
work in time.

Students who expect to miss deadlines for assignments, class exercises or CAT for health reasons or
special family reasons should communicate to the lecturer as soon as possible.

CLASS ATTENDANCE

Students are required to attend all classes and to report to class on time. If for some congent reason you
are unable to attend class, do inform the lecturer well in advance. Those who report to class more than
30 minutes late will be locked out of the class. You are required to attend at least 2/3 (67%) of all lessons,
failure to meet this threshold will lead your disqualification from this unit and you will be required to
repeat the unit when next offered. It is mandatory that you sign in your attendance in the class list as
prove that you have attended the class.

FINAL EXAMINATION

Please note that it is compulsory to sit for the end of trimester sit-in exam. Failure to do the exam is
treated as abscondment and one is required to repeat the unit when next offered. In the case where a
student, for a cogent reason, is unable to sit for the exam, please inform the lecturer early in advance and
make an official request of a special exam by filling the relevant form, which is available from the School
of Business and Public Management. It is your responsibility to ensure that you have done all
assignments, CATs, and the examination.

EVALUATION

The course will be evaluated as follows:

Assignments 20%
CAT 30%
FINAL EXAM 50%
TOTAL : 100%

PLAGIARISM AND INTEGRITY

1. Any student involved in cheating in tests, coursework or examinations will be suspended

pending investigations, and may be expelled from the University.

2. You are advised to acquaint yourself with the University examination regulations.

3. Plagiarism means presenting other people’s work as your own. Plagiarism is a serious
offence and will not be tolerated, and offenders will fail that course. You should not copy and
paste other people’s work without due and appropriate acknowledgement, which is done
through citations and references. All reports and assignments submitted will be checked for
similarity using the URKUND. The University has zero-tolerance for plagiarism and such a
violation will lead to stiff penalties including but not limited to, cancellation of your results,
as well as suspension from the University
REFERENCES

1. Lucey, T. (2002). Costing. Cengage Learning EMEA.

2. DRURY, C. M. (2013). Management and cost accounting. Springer.

3. Storey, R. (1995). Introduction to cost and management accounting. Macmillan.

Additional Reading

1. Horngren, C. T. (2009). Cost accounting: A managerial emphasis, 13/e. Pearson Education India.

2. Cooper, R., & Kaplan, R. S. (1991). The design of cost management systems: text, cases, and
readings. Prentice Hall.

A list of journal databases provided at thehttp://www.kca.ac.ke/index.php/electronic-resources-left-

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