Analysis of costs in a business organization. Includes cost development in both service and manufacturing situations. Areas discussed include job order costing, process costing, standard costing, and variance analysis. (Fall, Spring, Summer) [Graded (Standard Letter)] Prerequisite(s): ACCT 2020 - Prerequisite Min. Grade: D- Registration Restriction(s): Acceptance into the School of Business OR permission from a School of Business advisor OR have an approved Accounting minor

Srikant M. Datar and Madhav V. Rajan. Published 2025. Copyright 2026. Horngren’s Cost Accounting, A Managerial Emphasis. 18th Edition. E-book, Inclusive Access. Pearson.

ISBN-13: 978-0-533773-8.

Objectives include the abilities and knowledge areas listed below. To accomplish the objectives, excellence, perseverance, integrity, and kaizen are expected. Excellence without perseverance is unlikely; excellence without integrity is impossible. With hard work from you, and proper feedback from your instructor, the quality of your work should improve, a concept that the Japanese call “kaizen”, meaning continuous improvement in small steps.

Abilities (A)

• 1. Communication.
  • 1.1. Communicate accounting issues in written assignments.
  • 1.2. Communicate ethical and accounting issues in oral assignments, including using Giving Voice to Values.
• 2. Quantitative literacy, including skills in computers, and analysis.
  • 2.1. Correctly solve quantitative accounting homework assignments in Excel.
  • 2.2. Correctly solve supplemental problems in Excel.
• 3. Ethical reasoning and critical thought.
  • 3.1. Evaluate at least one ethical issue in accounting.
  • 3.2. Use the IMA Ethical Code of Professional Conduct to resolve an ethical issue.
• 4. Lifelong Learning.
  • 4.1. Find and integrate scholarly sources in supplemental problems and discussions
  • 4.2. Follow proper style guidelines
• 5. Teamwork.
  • 5.1. Interact with classmates and instructor on selected assignments.
  • 5.2. Make thoughtful and courteous comments on a discussion board.

Knowledge (K) Areas

• 1. Cost terminology.
  • 1.1. Differentiate between inventoriable and period costs.
  • 1.2. Describe the concept of “different costs for different purposes.”
• 2. Stochastic cost volume profit analysis.
  • 2.1 Determine the probability of breaking even for a single product company.
  • 2.2 Determine the probability of breaking even for a multi-product company.
• 3. Cost estimation.
  • 3.1. Use multiple-regression analysis and learning curve theory to estimate overhead cost.
  • 3.2. Critically evaluate the assumptions of regression analysis and learning curve theory.
• 4. Job costing.
  • 4.1. Track the flow of costs in a job costing system.
  • 4.2. Account for over/under-applied overhead using alternative methods.
• 5. Activity-based costing.
  • 5.1. Determine the cost of products using ABC.
  • 5.2. Determine the cost of services using ABC.
• 6. Master budgeting.
  • 6.1. Prepare production, purchases, and cash budgets
  • 6.2. Explain kaizen and activity-based budgeting
• 7. Flexible budgeting and control.
  • 7.1. Explain the purpose of flexible budgeting
  • 7.2. Compute the eight cost variances in standard costing
• 8. Variable and absorption costing.
  • 8.1. Compute income using variable and absorption costing.
  • 8.2. Reconcile differences between variable and absorption costing.
  • 8.3. Compute breakeven under variable and absorption costing.
• 9. Relevant costing and linear programming.
  • 9.1. Differentiate relevant and irrelevant costs in a special-order problem.
  • 9.2. Determine product mix using linear programming.

Grading. Your grade is based on the percentage of points earned from assignments and participation, where 90-100% = A, 80-89%= B, 70-79% = C, 60-69%= D, and 0-59% = F. Assignments are graded on content and style. Elements of content include accuracy and completeness. Elements of style include spelling, grammar, punctuation, and format. For details, see the grading rubric in Canvas for each assignment. In the spirit of kaizen, and at the discretion of the instructor, you may revise and resubmit selected assignments (not tests). See the comments box and grading rubric on each assignment for feedback. Use the feedback to improve your knowledge and skills related to each assignment. For policies regarding incomplete or withdrawal, please refer to the current university catalog.

Homework (44 points). Homework consists of assigned problems at the end of each chapter in the textbook (labeled as HW1, HW2, …, HW10, HW12), where the numbers are chapter numbers in the textbook. Submit each solution as a spreadsheet file to Canvas. Video solutions are provided on Canvas. To avoid relying too much on my solutions, try "paraphrasing" my solutions, where you study them, and then prepare your solutions from scratch on blank spreadsheets. Collaboration is not authorized. Students may be asked to answer questions about assigned problems to the class.

Supplemental problems (110 points). These are open-book problems on selected topics. Detail on each problem is in the Assignments page of Canvas. These assignments require you to write a formal memo to a supervisor that describes what your quantitative analysis means. Submit the quantitative analysis as a spreadsheet file and your formal memo as a Word file to Canvas. The format of the memo is provided within each assignment. For details on how your solutions are graded, see the grading rubric in Canvas. Partial solutions are provided in Excel. Video solutions are in Media Gallery. To avoid relying too much on my solutions, try "paraphrasing" my spreadsheet, where you study it, and then prepare your solution from scratch on a blank spreadsheet. Collaboration is not authorized. You may be asked to answer questions about assigned problems to the class.

Tests (236 points). Tests include a Syllabus Quiz (SQ), an Academic Integrity Quiz (AIQ), a Practice Quiz (PQ) on each chapter, a Cost Classification Quiz (CCQ), questionnaires on GVV (GVV1 and GVV2), and three quizzes (Quizzes 1, 2, and 3) on selected chapters. The SQ, CCQ, AIQ, and PQ are open-book. Each PQ may include questions about your homework. The other tests are closed-book/notes, and individual-effort. Collaboration is not authorized. You may use a blank version of Excel and a hand calculator during the tests. Please shred notes and delete the Excel file created during the test. Each test opens a few days before its due date. See “Tips for Tests” in Canvas for more details.

Course Assessment Survey (2 points). This end-of-course anonymous Course Assessment Survey (CAS) asks your opinion about accounting program objectives and ask your suggestions on how to improve this course. I value your feedback.

Essays (40 points). Prepare two essays (Essay1 and Essay2). See the Assignments tool in Canvas for instructions about each essay. Submit your essays to Canvas. See the grading rubric and the comment box for feedback. Use feedback on each essay to improve your writing skills. Collaboration is not authorized.

Giving Voice to Values Exercises (40 points). Prepare two formal presentations (GVV1 and GVV2) that develop your skills in Giving Voice to Values (GVV). For details, see Canvas. You will be asked to complete two questionnaires (pretest, post-test) for each exercise to assess their effectiveness.

Participation (16 or more points). Participation includes answering discussion questions (D1 thru D8) in Canvas, and other activities (for the face-to-face course), such as attendance, taking occasional in-class quizzes, answering questions, and being prepared. Be prepared to answer questions about homework and supplemental problems on the day and time the assignments are scheduled.

Assessments Abilities (A) and Knowledge Areas (K)

• 1. Essays1-2 Communicate accounting issues in written assignments (A1.1).
• 2. Formal presentations Communicate ethical issues in oral assignments using the Giving Voice to Values (GVV) method (A1.2).
• 3. All homework and supplemental problems Correctly solve quantitative accounting homework assignments and supplemental problems in Excel (A2).
• 4. Essay1 and Essay2 Evaluate at least one ethical issue in accounting using the IMA Ethical Code of Professional Conduct (A3).
• 5. Supplemental problems and Discussions Find and integrate scholarly sources in selected problems and discussions and follow proper style guidelines (A4).
• 6. Discussions 1-7 Interact with classmates and instructor on selected assignments and make thoughtful and courteous comments on a discussion board (A5).
• 7. HW1 and HW2 Differentiate between inventoriable and period costs and describe the concept “different costs for different purposes” (K1).
• 8. Supplemental Problem on CVP Determine the probability of breaking even for single product and multi-product companies (K2).
• 9. Supplemental Problem on Regression Use multiple-regression analysis and learning curve theory to estimate overhead cost and critically evaluate the assumptions of regression analysis and learning curve theory (K3).
• 10. Supplemental Problem on Learning Curve and Ethics Develop skills in written communication, quantitative literacy, and ethics, (A1.1, A2.2, A3.2, and K3.2)
• 11. Supplemental Problem on Job Costing Track the flow of costs in a job costing system, and account for over/under-applied overhead using alternative methods (K4).
• 12. HW5 Determine the cost of products and services using ABC (K5).
• 13. Supplemental Problem on Cash Budgeting Prepare production, purchases, and cash budgets, and explain kaizen and activity-based budgeting (K6).
• 14. Supplemental Problem on Flexible Budgeting Explain the purpose of flexible budgeting (K7).
• 15. Supplemental Problem on Variance Analysis Compute the eight cost variances in standard costing (K8).
• 16. HW7 and HW8 Compute the eight cost variances in standard costing (K8).
• 17. Supplemental Problems on Linear Programming and Special Order Determine product mix using linear programming and differentiate relevant and irrelevant costs in a special-order problem (K9).
• 18. Pop Quizzes and Quizzes 1-3 Demonstrate knowledge of cost accounting topics (K1- [HEADING-1] K9).

Module 0

Wed 27 Aug

• 1. Syllabus and Academic Integrity Policy Read the syllabus.
• 2. Commenced Attendance Quiz (CAQ) Complete the quiz on Canvas.
• 3. “Excellence and Academic Integrity” video Watch the video.
• 4. “Asking Questions” video Watch the video.
• 5. Syllabus Quiz (SQ) Complete the quiz on Canvas.

Module 1 Chap 1

Fri 29 Aug

• 1. Introduction to cost management Do problems 1-17,1-26
• 2. IMA Statement of Ethical Professional Practice Read the statement in Canvas.
• 3. Business Ethics video Watch the video.
• 4. Comments on Accounting Communication Skills Read the comments in Canvas.
• 5. D1- Communication skills in accounting Post to Discussions in Canvas.
• 6. HW1 (problems 1-17, 1-26) Submit HW1 to Canvas.
• 7. Pop Quiz 1 (PQ1) Complete PQ1 on Canvas.

Module 2 Chap 2

Wed 3 Sep

• 1. “Two Plus Two” video (1:50 minutes) Watch the video
• 2. Introduction to cost terms and purposes Do problems 2-25, 2-34.

Fri 5 Sep

• 1. Introduction to cost terms and purposes Do problem 2-40.

Mon 8 Sep

• 1. Introduction to cost terms and purposes Do problem 2-45.
• 2. Cost Classification Quiz (CCQ) Complete the CCQ on Canvas.
• 3. D2 - Creating a Culture of Academic Integrity Post Discussions in Canvas.
• 4. HW2 (problems 2-25,2-34,2-40 and 2-45) Submit HW2 to Canvas.
• 5. Pop Quiz 2 (PQ2) Complete PQ2 on Canvas.

Module 3 Chap3

Wed 10 Sep

• 1. CVP analysis – basic model Do problems 3-43, 3-44.

Fri 12 Sep

• 1. CVP analysis - extensions Do problems 3-50, 3-52.

Mon 15 Sep

• 1. Supplemental problem - CVP analysis Submit supplemental problem to Canvas
• 2. D3 - Ethics in accounting Post to Discussions in Canvas.
• 3. HW3 (problems 3-43, 44, 50, and 52) Submit HW3 to Canvas.
• 4. Pop Quiz 3 (PQ3) Complete PQ3 on Canvas.

Module 4

Wed 17 Sep

• 1. GVV1 – Making the Numbers See Assignment in Canvas for details.

Module 5 Chap 10

Fri 19 Sep

• 1. Cost estimation (regression analysis) Do problem 10-36.

Mon 22 Sep

• 1. Cost estimation (multiple regression analysis) Do problems 10-40,10-41.

Wed 24 Sep

• 1. Cost estimation (learning curve theory) Do problems 10-38, 10-39.

Fri 26 Sep

• 1. “Data Collection and Adjustment Issues” (pp. 388-389) Read the excerpt from your textbook.
• 2. Supplemental problem - regression analysis Submit supplemental problem to Canvas.
• 3. Sup. Prob. - learning curve theory and ethics Submit supplemental problem to Canvas.
• 4. HW10 (problems 10-36, 40, 41, 38, 39) Submit HW10 to Canvas.
• 5. Pop Quiz 10 (PQ10) Complete PQ10 on Canvas.

Module 6

Mon 29 Sep

• 1. Essay1 on Betty Vinson at WorldCom Submit Essay1 to Canvas.
• 2. Review (See Tips for Tests and Media Gallery)

Wed 1O Oct

• 1. Quiz1 (Chapters 1-3, and 10). No class. Complete quiz on Canvas.

Module 7 Chap 4

Fri 3 Oct

• Job-order costing, journal entries. Do problem 4-30.

Mon 6 Oct

• Proration of overhead Do problem 4-38.

Wed 8 Oct

• “Choosing Among Approaches” (textbook) Read the excerpt (pp. 131-132).
• Supplemental problem - job costing Submit supplemental problem to Canvas
• D4 - Careers in accounting Post to Discussions in Canvas
• HW4 (problems 30 and 38) Submit HW4 to Canvas
• Pop Quiz 4 (PQ4) Complete PQ4 on Canvas

Module 8 Chap 5

Fri 10 Oct

• Activity-based costing at a law firm Do problems 5-31,5-32,5-33.
• “Cost Hierarchies” (textbook) Read the excerpt (pp. 161-162)

Mon 13 Oct

• Fall break (13-14 Oct) – No classes

Wed 15 Oct

• Activity-based costing at a manufacturer Do problem 5-29.

Fri 17 Oct

• ABC, implementation, ethics2 Do problem 5-42.
• When Are Less Accurate Costs Desirable? Read the article by Merchant and Shields.
• D5 - ABC and GAAP Post to Discussions in Canvas.
• HW5 (problems 5-31,5-32,5-33,5-29,5-42) Submit HW5 to Canvas.
• Supplemental problem - ABC Submit supplemental problem to Canvas.
• Pop Quiz 5 (PQ5) Complete PQ5 on Canvas.

Module 9 Chap 6

Mon 20 Oct

• Revenue and Production Budgets Do problem 6-43.

Wed 22 Oct

• Activity-based and Kaizen Budgeting Do problems 6-30, 6-31, 6-49.
• “Budgetary Slack” (pp. 218-219) Read the excerpt (pp. 218-219).

Fri 24 Oct

• Supplemental problem - cash budgeting Submit supplemental problem to Canvas.
• State of the Union Address video (~8 min) Watch the video. Identify budget issues.
• D6 - Budgetary slack Post to Discussions in Canvas
• HW6 (problems 6-43, 6-30,6-31, 6-49) Submit HW6 to Canvas
• Pop Quiz 6 (PQ6) Complete PQ6 on Canvas

Module 10 Chap 7

Mon 27 Oct

• Price and Efficiency Variances Do problem 7-26.

Wed 29 Oct

• Materials and Manufacturing Labor Variances with Standard Costs and Journal entries Do problems 7-30, 7-31.
• HW7 (problems 7-26, 7-30, 7-31) Submit HW7 to Canvas.
• Supplemental problem - flexible budgeting Submit supplemental problem to Canvas.
• Pop Quiz 7 (PQ7) Complete PQ7 on Canvas.

Module 11

Mon 3 Nov

• Essay2 on Cynthia Cooper at WorldCom Submit Essay2 to Canvas.
• Review for Quiz2 (See Tips for Tests and Media Gallery)

Wed 5 Nov

• Quiz2 (chapters 4-7). No class. Complete quiz on Canvas.

Module 12 Chap 8

Fri 7 Nov

• Four overhead variance analysis Do problem 8-27.

Mon 10 Nov

• Manufacturing overhead, standard costing Do problem 8-28.

Wed 12 Nov

• Flexible budgeting with 4 variance analysis Do problem 8-39.
• HW8 (problems 8-27, 8-28, 8-39) Submit HW8 to Canvas.
• “Management Control Systems using a Work-Breakdown Structure” (WBS) video Watch the video. Identify how a WBS is used to organize and analysis cost data.
• Supplemental problem - variance analysis Submit supplemental problem to Canvas.
• Pop Quiz 8 (PQ8) Complete PQ8 on Canvas.

Module 13 Chap 9

Fri 14 Nov

• Variable and Absorption Costing Do problem 9-21.

Mon 17 Nov

• Cost allocation and downward demand spiral Do problem 9-44.

Wed 19 Nov

• Cost allocation, responsibility accounting, and ethics Do problem 9-45.
• Lots of Trouble (Segarra 2010, 2 pages) Read the article.
• “Choosing a Capacity Level” (pp. 341-342) Read the pages of your textbook.
• Supplemental problems - variable costing Submit supplemental problem to Canvas.
• HW9 (problems 9-21, 9-44, 9-45) Submit HW9 to Canvas.
• Pop Quiz 9 (PQ9) Complete PQ9 on Canvas
• D7- Variable Costing and GAAP Post to Discussions in Canvas.

Module 14 Chap 12

Fri 21 Nov

• Relevant costing (contribution margin, special orders, theory of constraints) Do problems 12-23, 12-24,12-28.

M-F Thanksgiving Break (24-28 Nov) – No class

Mon 2 Dec

• Optimal Product Mix (linear programming) Do problem 12-48.

Wed 4 Dec

• Supplemental problem - special order Submit supplemental problem to Canvas.
• Supplemental problem - linear programming Submit supplemental problem to Canvas.
• HW12 (problems 12-23, 12-24, 12-28 ,12-48) Submit HW12 to Canvas.
• Pop Quiz 12 (PQ12) Complete PQ12 on Canvas.

Module 15

Fri 6 Dec

• GVV2 – Academic Dishonesty See Assignments in Canvas for details.
• Review for Quiz3 (See “Tips for Tests” and Media Gallery)

Module 16

Thurs 11 Dec

• Quiz3 (chapters 8,9,12). No class. Complete Quiz3 on Canvas.
• Course Assessment Survey Complete survey on Canvas.

Assignments are due by midnight on the dates listed in the Schedule of Assignments. You may submit assignments early. Assignments submitted late may receive zero points. No assignments are accepted after the last day of class. Use the Modules tool in Canvas to complete assignments in order and on time.

Attendance is required for the face-to-face class. You may be asked to answer questions about assigned problems to the class. Be respectful to your classmates and the instructor. Attend each scheduled class, be on time, and stay for the entire class period. Be prepared by watching the assigned lecture, reading the assigned chapter, completing the assigned homework problems before the start of each class period, and answering questions about the scheduled assignments.

There are no course-specific course fees

Honor Code

To promote a culture of academic integrity in the School of Business, faculty and students pledge to not “lie, steal, cheat, or tolerate those who do.” In addition, the School of Business defines academic integrity to include five core values: honesty, trust, respect, fairness, and moral courage. A link to the School’s honor system is on the course home page in Canvas. Using artificial intelligence, Chegg, Course Hero, ChatGPT, or similar services to find answers to assignments and tests is prohibited. Unless otherwise indicated on the assignment, collaboration is not authorized. Contact the instructor if you need this policy clarified.

Assignment Pledge

You will be asked to sign the following pledge: "I pledge on my honor that I will not give or receive any unauthorized assistance on this assignment or test" at the start of each assignment/test. If you don't agree then please contact the instructor and do not take the assignment/test.

Plagiarism

All assignments that require a written response must be in your own words. Plagiarism may result in a failing grade for the course or worse if it is a second offense. Plagiarism includes “(1) failing to cite quotations and borrowed ideas, (2) failing to enclose borrowed language in quotation marks, and (3) failing to put summaries and paraphrases in your own words” (Hacker 2011: 502). As a control against plagiarism, your assignments will be submitted to CopyLeaks, software that identifies files containing unoriginal material, including AI-generated content.