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ACC 102 · Unit 2 of 6

Costing Systems

Managerial Accounting and Control

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Learning objectives

After completing this unit, you will be able to:

  • to business decisions
  • Apply the frameworks in "Costing Systems" to a real management decision
  • Make progress on your Managerial Accounting and Control case analysis applied project

Why this matters

Costing Systems is essential to Managerial Accounting and Control. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 5 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Managerial Accounting and Control case analysis. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Costing Systems"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Managerial Accounting and Control case analysis?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • to business decisions
  • Business concepts only matter when they change a decision.
  • Your ACC 102 assessment (Cost concepts, budgeting, variance analysis, and decision-relevant costing for managers.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Costing Systems45 min
Complete a focused practice exercise on **Costing Systems**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ACC 102.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Costing Systems30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ACC 102 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Model / spreadsheet

Build or extend a spreadsheet model tied to this unit.

ModelSpreadsheet model: Costing Systems60 min
Build a spreadsheet model demonstrating **Costing Systems**. **Requirements:** - Separate Input, Calculation, and Output sections - Label all units ($, %, units) - Include at least one sensitivity or scenario comparison - Add a balance check or reasonableness test Use Google Sheets or Excel. Link the model to your Managerial Accounting and Control case analysis project where applicable.

Deliverable

Spreadsheet file with Inputs / Model / Outputs tabs · One-paragraph summary of key insight from the model · Screenshot or export saved to portfolio

Rubric

  • • Assumptions stated explicitly
  • • Logic is auditable (formulas or steps visible)
  • • Output answers a specific business question
  • • Sensitivity or scenario considered

Knowledge quiz

Check your understanding before marking the unit complete.

1. Job 4471 is a 50,000-case club-store granola bundle with $118,400 direct materials, $42,600 direct labor, and $36,800 applied overhead. What is total manufacturing cost on the job cost sheet?

2. Omaha granola mixing runs continuously. At month-end 8,000 cases are 60% complete in packaging. Why do equivalent units matter?

3. Northwind sets predetermined overhead rates each October: Omaha $38 per machine hour, Fresno $52 per direct labor hour, Columbus $4.85 per direct labor dollar. Q2 shows $240,000 under-applied overhead companywide. What does under-applied signal?

4. Heritage Sauce runs twelve flavor changeovers per week while granola high-runners need few. Under single-rate machine-hour allocation, what mistake is likely?

5. An Omaha promotional job uses 1,200 machine hours. At the Omaha predetermined rate of $38 per machine hour, how much manufacturing overhead is applied to the job?

6. Northwind's retailer EDI onboarding team logs analyst hours and server fees. Commercial wants promotional deals priced without support cost. Which costing approach fits?

7. A process-costing student assigns 100% of Fresno sauce department costs to units completed and 0% to ending WIP when 5,000 gallons are 40% complete. What error does this create?

8. Fresno applies overhead at $52 per direct labor hour. A sauce batch records 180 direct labor hours. Direct materials are $14,200 and direct labor wages $4,860. What is applied overhead for the batch?

Next unit: Cost-Volume-Profit Analysis →