Resources must be acquired and managed efficiently so that for organizations can survive and to develop in a changing environment, which is characterized by uncertainty, complexity and hostility. In this sense, cost accounting is increasingly necessary as a source of information for the planning of activities, organization, control of operations and decision-making
OBJECTIVES AND EXPECTED LEARNING OUTCOMES
This course aims to:
1. Provide students with knowledge related to methodologies in the analysis of the distribution of expenses;
2. Understand and apply cost-volume-results analysis;
3. Develop students' skills in joint production costing
4. Understand the accounting treatment of defective production;
5. Allow an understanding of the importance of calculating deviations.
SKILLS TO BE DEVELOPED
1. Define and classify expenses centers;
2. Apply the method of homogeneous sections, making the primary and secondary breakdown of expenditure, including reciprocal benefits;
3. Characterize and apply activity-based costing (ABC);
4. Understand the importance of cost / volume / earnings ratio analysis for management;
5. Calculate and analyze break even point, contribution margin and safety margin;
6. Characterize the types of outputs obtained from joint production;
7. Recognize the importance of the separation point for sharing joint or common costs;
8. Recognize the importance of treatment for defective production;
9. Apply the basic cost / standards system and determine its main deviations
Programme
Chapter I - Expenses Centers
1.1. Functional division of expenses
1.2. Main and auxiliary centers
1.3. Classification of expenses centers
1.4. Breakdown of centers expenses
1.5. Analysis of some expenses nature
1.6. Homogeneous sections
Chapter II - Activity-Based Costing (ABC)
2.1. Explain the concepts of activity and cost driver;
2.2. Identify the steps required to implement ABC;
2.3. Identify the main differences between the homogeneous sections method and the ABC;
2.4. List the advantages associated with implementing ABC.
Chapter III - Cost / Volume / Result Ratio (CVR)
3.1. Understand the behavior of costs in relation to variations in the level of activity;
3.2. Explain the scope of use of CVR analysis;
3.3. The break even point, contribution margin and safety
3.4. Use CVR analysis as a tool to support decision making.
Chapter IV - Joint Production
5.1. Distinguish between joint and disjoint production;
5.2. Understand the main issues in costing joint production;
5.3. Identify and characterize the criteria for apportioning joint costs among main products, by-products and waste.
Chapter V - Defective Production
5.1. Valuation of defective production.
Chapter VI - Basic Costs / Standards
6.1. Calculation and analysis of deviations
Demonstration of the syllabus coherence with the curricular unit's learning objectives
The proposed contents allow to acquire knowledge and to develop the competences foreseen in the objectives, as:
- Chapters I and II meet objective 1 as methods for cost sharing are studied;
- Chapter III responds to objective 2 by addressing CVR analysis;
- Chapter IV contains content that enables objective 3 to be met by analyzing the joint cost allocation criteria;
- Chapter V presents content that responds to objective 4, which has as its purpose the accounting treatment of defective production.
- Chapter VI allows you to respond to objective 5 by including the calculation and analysis of deviations.
Main literature
Franco, V. S., Oliveira, A., Morais, A. I., Oliveira, B., Lourenço, I., Major, M. J.; Jesus, M. A. & Serrasqueiro, R. ;Temas de Contabilidade de Gestão, Lisboa: Livros Horizonte, 2015. ISBN: 9789722416467
Caiado, António C. Pires ;Contabilidade Analítica e de Gestão, 8.ª Edição,, Lisboa: Áreas Editora, 2015. ISBN: 9789898058898
Supplementary Bibliography
Franco, V. S., Morais, A.I., Oliveira, A., Major, M.J., Serrasqueiro, R., Jesus, M.A. & Oliveira, B. ;Temas de Contabilidade de Gestão: Gestão Orçamental e Medidas Financeiras de avaliação do desempenho, Lisboa: Livros Horizonte, 2012. ISBN: 9789722417617
Trancoso, T., Gomes, Sofia;Princípios de Contabilidade de Gestão: Gestão de Custos para Mentes Brilhantes, KDP, 2018. ISBN: 978-1719941518
Learning Methods
Presentation and discussion of theoretical and practical cases, with the supply of support material on the matters to be addressed as well as the literature considered indispensable for various items of the program.
Assessment Components
Avaliação apenas com exame final
Assessment Components
Description
Type
Time (hours)
Conclusion Date
Attendance (estimated)
Lessons
45
Seminar
Study
2
Evaluation
Teste/Exame
3
Individual autonomous study
Study
95
Others
Study
15
Total:
160
Continuous Assessment
2 Individual written tests: 40% each
2 Group worksheets submitted through E-Learning platform: 20% each
Under the terms of the Bachelor's Regulation:
a) The students' attendance in classes will be recorded and, if the number of absences per student exceeds 30% of the total number of lessons scheduled for each course unit, the student will be automatically transferred to the final evaluation (regular season).
b) In the written tests and other assessment elements mentioned in paragraph 2 of Art. 39 it is necessary to obtain a minimum grade of 7.5 (seven point five) points.
c) If the student misses a test or receives a grade lower than 7.5 points in the tests or in another assessment element mentioned in the previous number, the student will be automatically transferred to the final evaluation (regular season).
d) If the student misses or obtains less than 7.5 in the second written test, held in the same date of the final exam in the regular season, they may apply for further evaluation in the Appeal season.
e) All written academic work provided for in the assessment (reports, case studies, etc.) must be submitted to the Turnitin database, available on the ISAG E-Learning platform, with a similarity rate up to 30% acceptable.
Final Exam
1 Individual written exam: 100%
Demonstration of the coherence between the teaching methodologies and the learning outcomes
The teaching/learning process involves the theoretical exposition and the resolution of practical cases, which allows students, in the scope of analytical accounting, to adapt the acquired theoretical knowledge to the professional reality of companies, that is, to identify, analyze and solve problems within the scope of business management and at the level of decision-making.