Week One Student Guide

Welcome to the first week of Cost Accounting. This week, you learn what managerial and cost accounting are and how these relate and contrast to financial accounting. You then learn about the two basic forms of cost accounting—job order and process cost systems. Most importantly, you will consider ethical considerations within managerial and cost accounting.

Your work this week is a critical foundation for the entire course. The first chapter presents a thorough orientation to managerial and cost accounting, including the terms and components you will use throughout the course. Then, you will discuss the two most common and basic forms of cost accounting used in American businesses. This will establish a framework for the course.

Fundamentals of Managerial and Cost Accounting

OBJECTIVE: Identify key components and terminology utilized within cost accounting.

Resources: Ch. 1–3 of Managerial Accounting

Content

• Ch.1: “Managerial Accounting”

o Managerial Accounting Basics o Managerial Cost Concepts o Manufacturing Costs in Financial Statements o Managerial Accounting Today

• Ch. 2: “Job Order Costing”

o Cost Accounting Systems

• Ch. 3: “Process Costing”

o Process Costing

OBJECTIVE: Compare and contrast process and job cost systems.

Resources: Ch. 2 & 3 of Managerial Accounting

Content

• Ch. 2: “Job Order Costing”

o Cost Accounting Systems o Job Order Cost Flow o Reporting Job Cost Data

• Ch. 3: “Process Costing”

o The Nature of Process Cost Systems o Equivalent Units

• Production Cost Report

OBJECTIVE: Examine ethical issues in managerial accounting.

Resources: Ch.1 of Managerial Accounting and selected Week One Electronic Reserve Readings

Content

• Ch. 1: “Managerial Accounting”

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