ACC431 - Cost Accounting

Outline info
Last revision date 2018-06-13 12:59:17.183
Last review date 2018-06-13 12:59:17.184

Subject Title
Cost Accounting

Subject Description
Accounting 431 deals with internal accounting, specifically cost accounting. Its objectives are to determine product costs for inventory valuations. The associated accounting systems include methods of identifying, separating, classifying and summarizing costs under various product costing techniques. The subject also includes the managerial use of cost information for planning and cost control. Cost Accounting is an extension of financial accounting. Its aim is to provide relevant information to various levels of management for planning and controlling day-to-day operations. The internal accounting system must be designed to meet the requirements of specific managerial needs.

Credit Status
For information regarding exemptions for courses included in CPA’s Advanced Certificate in Accounting & Finance (ACAF) program please see

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Describe the purpose and usefulness for which the manager needs accounting information.

2. Distinguish between product costs and period costs. Identify the basic cost elements involved in the manufacturing of a product and prepare a schedule of cost of goods manufactured.

3. Demonstrate the flow of costs in a manufacturing process using T accounts.

4. Identify all documents used in a job order cost system; prepare journal entries for all transactions of a manufacturing process; and compute predetermined overhead rates.

5. Prepare cost of production reports including equivalent unit calculations, costing of normal and abnormal spoilage under the AVERAGE and the FIFO method.

6. Allocate manufacturing overhead to products using activity based costing.

7. Classify costs/expenses by their behaviour and analyse mixed costs using the High-Low and the least Squares methods.

8. Determine the volume, price, break-even before and after taxes for single products and sales mix using the contribution margin approach.

9. Determine the inventory values and income under the direct costing and the full absorption costing methods and reconcile the differences.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

ACC220 Accounting Basics II

Topic Outline

  •     Cost Terms, Classifications, Concepts
  •     Job Order Costing
  •     Activity Based Costing
  •     Process Costing
  •     Standard Costing
  •     Flexible Budgets & Overhead Analysis

Mode of Instruction

A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.


This subject is delivered online. This may involve the use of digital materials and/or a text, group discussions, interaction with your instructor and online activities.

Prescribed Texts

Title: Managerial Accounting
Edition: 11th 
Author: Garrison, Libby, Web
Publisher: McGraw-Hill Ryerson
ISBN: 9781259275814


Title: Managerial Accounting + Connect with SmartBook
Edition: 11th
Author: Garrison, Chesley, Carroll and Webb
Publisher: McGraw-Hill Ryerson
ISBN: 9781259269479

updated 6/13/2018

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor prior to the assignment due date so that an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks from the due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail. Please ensure that all assignments and reports are properly documented.

Students are referred to the following website for Seneca College Library style guides, Academic Honesty Policy and Copyright guidelines:


Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the event of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency
The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this subject in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme:


Midterm                                        40%
Case/ In Class Assignment         10%
Final                                               50%

Assignments             40 %
Unit Tests                  20%
Final Examination 40 %

* Final Exams: The final exam for online subjects must be written at the Test Centre of the College at which you registered. If you are unable to do so, please make alternative arrangements through the College at which you registered. All the academic policies of the College at which you registered apply. This includes, but is not limited to policies related to grading, supplemental exams, deferred exams and accommodations.

Please retain this course outline document for future educational and/or employment use.

Program Coordinator
Cynthia Duncan

Approved by: Chair - Business Studies Danielle Mercier