Accounting (ACCT) 355

Cost Analysis (Revision 11)

ACCT 355

Revision 11 is closed for registrations, see current revision

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Delivery Mode: Individualized study online (with eTextbook)

Credits: 3

Area of Study: Applied Studies
(Business and Administrative Studies)

Prerequisite: ACCT 250 or ACCT 253

Faculty: Faculty of Business

ACCT 355 has a Challenge for Credit option.

Télé-université du Québec equivalency: FIN 2005

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ACCT 355 will take you through the details of cost accumulation and product costing, as well as the measurement and identification of relevant costs for managerial decision making, planning, control, and performance measurement.

Lesson 1 serves as a foundation for the course, providing a general perspective of management accounting and how it relates to financial accounting. The first part of the lesson discusses the three broad functions of management and the role of management accountants in an organizational structure. It also describes how the ever-changing business environment has affected the practice of management accounting and the accountant's role in an organization. The second part of Lesson 1 looks at management accounting practices and terminology, and provides an overview of basic concepts in identifying and classifying costs.

Lessons 2 through 10 are organized according to three themes:

  • Lessons 2 to 4 focus on cost accumulation and product costing for inventory valuation and income determination. This theme focuses mainly on assigning costs to products and services to separate costs incurred during a period between costs of goods sold and inventories.
  • Lessons 5 to 7 discuss the measurement and identification of relevant costs for different types of managerial decisions.
  • Lessons 8 to 10 concentrate on the processes involved in planning, control, and performance measurement. The emphasis is on the accounting process as a means of providing information to help managers control the activities for which they are responsible.


  • Lesson 1: Accounting, Business, and Competitiveness
  • Lesson 2: Product Costing—Job Order Costing
  • Lesson 3: Product Costing—Process Costing
  • Lesson 4: Activity-Based and Service Department Costing
  • Lesson 5: Decision-Making: Cost-Volume-Profit (CVP)Analysis
  • Lesson 6: Incremental Analysis and Absorption versus Variable Costing: A Decision-Making Perspective
  • Lesson 7: Pricing and Inventory Decisions
  • Lesson 8: Budgetary Planning: The Master Budget
  • Lesson 9: Budgetary Control and Responsibility Accounting
  • Lesson 10: Planning for Capital Investments


To receive credit for this course, you must write a final examination and pass it with a grade of at least 50%. In addition, you must achieve a minimum overall course grade of D (50 percent). Any quizzes or assignments not submitted will receive a grade of 0%.

The following chart describes the credit weight associated with each assessment activity:

Activity Credit weight When to complete
Quizzes (6@ 2.5%) 15% of final grade After Lessons 2, 3, 5, 6, 8, 9
Assignment 1 10% of final grade After Lessons 4
Assignment 2 10% of final grade After Lessons 7
Assignment 3 10% of final grade After Lessons 10
Final Examination 55% of final grade End of course
Total 100% of final grade  

In response to COVID-19 containment directives, temporary online exam(s) are available for this course.

To learn more about assignments and examinations, please refer to Athabasca University's online Calendar.

Your performance in ACCT 355 will be evaluated on the basis of the work conducted on assignments and on the results of the examination. Because the assignments and the examination have been designed to assess analytical skills, you will need to synthesize the concepts learned throughout the course.

Note: Students planning to transfer this course to a Chartered Professional Accountant designation are advised that they will be required to achieve a grade higher than the minimum passing grade. See CPA Requirements for details.

Course Materials


Registration in this course includes an electronic textbook. For more information on electronic textbooks, please refer to our eText Initiative site.

Weygandt, J.J., Kimmel, P.D., Kieso, D.E., & Aly, I.M. (2015). Managerial Accounting: Tools for Business Decision-Making (4th Cdn. Ed.). Toronto: John Wiley & Sons Canada, Ltd.  ISBN 978-1118856994

A print version of the eText may be available for purchase from the publisher through a direct-to-student link provided on the course website; you can also acquire the textbook on your own if you wish.

Other Materials

Students will access all other course materials online.

Challenge for Credit Overview

The Challenge for Credit process allows you to demonstrate that you have acquired a command of the general subject matter, knowledge, intellectual and/or other skills that would normally be found in a university-level course.

Full information about Challenge for Credit can be found in the Undergraduate Calendar.

Challenge Evaluation

To receive credit for the ACCT 355 challenge registration, you must achieve a grade of at least D (50 percent) on the examination.

Paper Exam

Undergraduate Challenge for Credit Course Registration Form

Athabasca University reserves the right to amend course outlines occasionally and without notice. Courses offered by other delivery methods may vary from their individualized-study counterparts.

Opened in Revision 11, August 8, 2016.

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