Revised: 27/07/2009

INTI UNIVERSITY COLLEGE

COURSE STRUCTURE COURSE: ACC2101 BUSINESS ACCOUNTING 2 (3 cr)

PREREQUISITES: ACC1101 Business Accounting 1 COURSE DESCRIPTION: To provide the students with basic knowledge of costing procedures, budgets, and short term decision making. In addition, students are exposed to the use of cost accounting in practice. LEARNING OBJECTIVES: The aims of this course are to enable students to: 1. differentiate between financial, management and cost accounting. 2. demonstrate knowledge of the technical aspects of cost accounting for short-term decision making. LEARNING OUTCOMES: Successful students will be able to: 1. state the different roles performed by the financial, cost and management accountant. 2. identify and classify the various types of costs. 3. calculate inventory (stocks) values using FIFO, LIFO and Average methods. 4. describe and compute remuneration for labour using time based and incentive schemes. 5. compute overheads absorption rates using repeated distribution and algebra methods and calculate under or over-absorption of overheads. 6. draft marginal and absorption costing profit statements. 7. compute break-even points and perform graphical presentations for break-even analysis. COURSE FORMAT: Lecture: 3 hrs per week, Tutorial: 1 hr per week [For short semester, Lecture: 6 hrs per week, Tutorial: 2 hrs per week] STUDENT EVALUATION: Test 1: 10%, Test 2: 10%, Individual Assignment: 20%, Group Assignment: 20%, Final Examination: 40% FINAL EXAMINATION FORMAT: Duration: 2 hours. The students will be required to answer: Section A: Answer THREE questions out of FOUR (75%) Section B: Answer ONE question out of TWO (25%) GRADING SCALE: A+ (90-100), A (80-89), A- (75-79), B+ (70-74), B (65-69), B- (60-64), C+ (55-59), C (50-54), C- (45-49), D (40-44), F (0-39). Resit Pass, RP (50-100), Resit Fail, RF (0-49) BASIC TEXT(S): 1. Lucey. T., 2002, Costing, 6th ed., London, Continuum. REFERENCES: 1. Drury, C., Cost and Management Accounting, 6th ed., Thomson, 2006.

DBADI: ACC2101 BUSINESS ACCOUNTING 2

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Revised: 27/07/2009

CLASS SYLLABUS: Lecture(s) Topics 1-2 Introduction to Costing Comparison of Management Accounting and Financial Accounting- Role of Management Accounting in Management. 3-4 Costing Terminology Classification of costs- Elements of costs- Cost behaviour patterns 5-8 Accounting for Material Introduction- Materials control procedure- Stock recording and inventory control pricing the issue of material: FIFO, LIFO and AVERAGE. Other areas- arguments for and against of FIFO & LIFO, JIT. 9 - 12 Accounting for Labour Introduction- Control procedures- Labour turnover rate- Remuneration methods. 13 - 16 Accounting for Overheads Principles of overhead allocation and apportionment- Principles of overheads apportionment of service centres- Repeated distribution methods, Algebra method. Use of pre-determined overhead absorption rates- Under and over absorption of overheads. 17 - 20 Marginal costing Preparation of profit statements using Marginal costing principles Comparison of profit calculated using Marginal and Absorption costing principles. 21 - 24 Break-even Analysis Calculations- Charts 25 - 26 Comprehensive examples 27 - 28 Revision Final Examination

DBADI: ACC2101 BUSINESS ACCOUNTING 2

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