Building a Cost Accounting Fun Zone by Using Video Clips, Factories, and Food By: Carole Shook, Department

of Accounting, Sam M. Walton College of Business, University of Arkansas mail: cshook!"alton.uark.e#u; phone: 479-575-6096 Description of the project: Short vi#eos of real factories are use# to e$plain common Cost Accounting concepts. %ou may &ring foo# items relate# to the vi#eo '( ha# a small class of )* so this "as easy to #o+ an# have stu#ents e$amine the foo# item 'an# en,oy it-+. .he goal is to teach stu#ents in such an en,oya&le "ay they forget they are learning. Purpose of the project: /. Create e$citement in a class generally perceive# as &oring. 0. 1elp stu#ents relate concepts to real "orl# elements. 2. 1elp stu#ents remem&er concepts an# terms &y remem&ering the vi#eos 'ai# for visual learners+. ). ngage stu#ents in consi#ering accounting "ithin the firm as a career.

Based on: '(nformation from the A(C3A "e&site+ .he A(C3A Core Competency 4rame"ork, #evelope# &y e#ucators for e#ucators, #efines a set of skills5&ase# competencies nee#e# &y all stu#ents entering the accounting profession, regar#less of the career path they choose 'pu&lic6in#ustry6government6nonprofit+ or the specific accounting services they "ill perform. .he frame"ork focuses on skills an# is not structure# aroun# tra#itional su&,ect6content areas or accounting services. A skills5 &ase# curriculum is a#vocate#, &ecause the &o#y of kno"le#ge an# the accounting profession are changing so rapi#ly. Although kno"le#ge re7uirements "ill change "ith time, the core set of competencies i#entifie# &y the 4rame"ork "ill have long5term value an# "ill support a variety of career opportunities for the future C3A. .he focus of this pro,ect is one functional competency an# three &roa# &usiness competencies. 4unctional competencies are technical competencies most closely aligne# "ith the value contri&ute# &y accounting profession. Broa# Business 3erspective competencies are perspectives an# skills relating to un#erstan#ing of internal an# e$ternal &usiness conte$ts. .he functional competency is Decision Mo#eling: 8(n#ivi#uals preparing to enter the accounting profession must &e a&le to use strategic an# critical approaches to #ecision making. .hey must o&,ectively consi#er issues, i#entify alternatives, an# choose an# implement solution approaches in or#er to #eliver services an# provi#e value.9 (n this pro,ect: Stu#ents are making #ecisions on costs &ase# on learning "hat cost accounting concept applies to "hich type of pro#uct. .he three &roa# &usiness competencies: Strategic6Critical .hinking: 8Critical thinking encompasses the a&ility to link #ata, kno"le#ge, an# insight together from various #isciplines to provi#e information for #ecision5making. Being in tune "ith the 8&ig picture9 perspective is a necessary component for success. (n#ivi#uals entering the accounting profession shoul# &e a&le to communicate to others the vision, strategy, goals, an# culture of organi:ations.9 (n this pro,ect: Stu#ents are creating information to &e use# in #ecision making. (n#ustry6Sector 3erspective: (n#ivi#uals entering the accounting profession shoul# &e a&le to i#entify the economics accounting an# &roa# &usiness financial risks an# opportunities of the in#ustry an# economic sector in "hich a given organi:ation operates. (#entification of these risks an# opportunities shoul# inclu#e &oth issues specific to the enterprise, as "ell as those pervasive throughout the in#ustry6sector. (n this pro,ect: ;etting familiar "ith #ifferent in#ustries.

(nternational6;lo&al 3erspective: (n#ivi#uals entering the accounting profession shoul# &e a&le to i#entify an# communicate the variety of threats an# opportunities of #oing &usiness in a &or#erless "orl#. .he accounting professional of the future must provi#e services to support an# facilitate commerce in the glo&al marketplace. (n this pro,ect: 4oo# is shippe# overseas. ethods !aught Using the Videos: Job Order Costing: <i#eo =ink: http:66""".youtu&e.com6"atch>v?@3,hA@l130) B Making Cookies "ith Aancy .o#ay. .his vi#eo is very funny. (t is a spoof on cooking sho"s. 3reten# that Aancy #eci#es she "ants to run a &akery out of her kitchen. 1ave stu#ents assume that Aancy "ill &ake cookies as they are or#ere# &y customers. .herefore each ,o& "ill have a #ifferent cost &ecause Aancy "ill &e making #ifferent cookies an# #ifferent amounts for various customers. 1ave stu#ents choose one kin# of cookie to make an# list the costs an# #ollar amounts so that they can #etermine ho" much each &atch of cookies "ill cost. 'Make sure they inclu#e cleaning supplies+.

A##itional e$ample: <i#eo =ink: http:66""".youtu&e.com6"atch>v?Ch:35DsA)*c B 1o" to Make Co"&oy Boots. %ou can #o a similar e$ercise "ith co"&oy &oots as each one is uni7ue in this shop. ABC Costing: %ou "ant to e$plain ho" these are also uni7ue or#ers that are more complicate# an# "ith more parts than a simple cookie. (n this case you can #escri&e making a cake an# use the popular .< sho" Cake Boss. <i#eo =inks: http:66""".youtu&e.com6"atch>v?Ep3)Fl1eG5( , 'very short+ http:66""".youtu&e.com6"atch> v?ikH,nIJneC(Kfeature?channel, 'very short+ http:66""".youtu&e.com6"atch>v?@fD $"5ha)oKfeature?channel 'very short+ http:66""".youtu&e.com6"atch>v?U:UUCte@pCM 'longer+ After "atching the vi#eo ask the stu#ents to list the #ifferent costs that are involve# in making a cake. $plain cost #rivers in terms of cake &atter, icing, or the la&or to make a cake. 1ave stu#ents #ivi#e the costs &y the #ifferent costs #rivers.

A##itional e$amples: <i#eo =ink: http:66""".youtu&e.com6"atch>v?)ks7@l&%L,MKfeature?relate# ho" a large plane is ma#e 7uickly. A##itional <i#eo =ink: http:66""".youtu&e.com6"atch>v?)=hAN.*t;FG ho" small planes are ma#e Process Costing: <i#eo =ink: 1o" (tOs Ma#e5stacke# potato chips http:66""".youtu&e.com6"atch> v?7NogPcvJB7EKfeature?relate# 1ave stu#ents e$plain a&out ho" the stacke# chips in particular "ere the same, an# ho" "e canQt tell "hich chips are going into "hich package. Discuss the "eighte# average concept: "e canQt tell "hich ingre#ients are in a particular can "e have to use the "eighte# average of all that "ent in on that particular #ay.

Ask stu#ents to #escri&e ho" "eighte# average "orks. 1ave stu#ents to come up "ith a list of possi&le costs an# "ork a small sample pro&lem.

<i#eo =ink: 1o" (tQs ma#e B Bu&&le gum http:66""".youtu&e.com6"atch>v?PC@A2:"LU( Kfeature?relate# In the secon# #ay of process costing sho" this vi#eo relate# to &u&&le gum. (t is the same sort of process as the stacke# chips. (n this case #iscuss 4(4I ho"ever. We assume that the first ingre#ients "e put in are in the first &ags "e put out. 1ave stu#ents #escri&e ho" 4(4I "orks. 1ave stu#ents come up "ith a list of possi&le costs an# "ork a small sample pro&lem.

Joint Process Costs: <i#eo =ink: Milk: http:66""".youtu&e.com6"atch> v?k(&<" *:&/%Kfeature?3lay=istKp?/DDG/02)D/)D D4*Kplayne$t?/Kplayne$tNfrom?3=Kin#e$?0 <i#eo =ink: Cheese: http:66""".youtu&e.com6"atch> v?41mJA&2;MekKfeature?3lay=istKp?/DDG/02)D/)D D4*Kplayne$t?/Kplayne$tNfrom?3=Kin#e$?2D <i#eo =ink: (ce Cream treats: http:66""".youtu&e.com6"atch>v?Si(Ca1AIr; An# (ce cream: http:66""".youtu&e.com6"atch>v?F5DsDWr.JDkKfeature?relate# All of these pro#ucts start "ith milk. .he pro#uct can only &e milk or it can &e ma#e into cheese or ice cream "ith a##itional processing. 1ave stu#ents #iscuss the split5off point an# list some of the a##itional costs to pro#uce milk an# cheese. 1ave stu#ents create a numerical e$ample if a company "ants to process milk or sell cheese an# ice cream at a higher price an# at an a##itional cost. 1ave stu#ents #iscuss ho" to account for &y5pro#ucts.

=ink: A &y5pro#uct of making cheese are cheese cur#s: http:66"""."isegeek.com6"hat5are5cheese5cur#s.htm Qu !it" <i#eo =ink: 1o" Chocolate is Ma#e http:66""".youtu&e.com6"atch> v?r#.pAMluD0UKfeature?3lay=istKp?244CD02AAD)CMCCMKin#e$?/@ 1ave stu#ents #iscuss the concepts of total 7uality management an# return on 7uality. 1ave them make a list of ho" the 7uality of chocolate coul# &e #etermine#. 1ave stu#ents #iscuss internal an# e$ternal failures an# ho" this "oul# have an effect on the company. Discuss ho" ,ust in time manufacturing "oul# "ork "ith the chocolate.

#t nd rd Costing: <i#eo =ink: Marshmallo" Cookies http:66""".youtu&e.com6"atch>v?C.CCGDmtc," .he vi#eo e$plains ho" each cookie is suppose# to &e e$actly the same B #o"n to the s"irl on top 1ave the stu#ents #iscuss ho" stan#ar# costs are #etermine# an# "hy the cookie company "oul# "ant each cookie to cost the same. 1ave the stu#ents create the stan#ar# costs for each cookie.

$!e%ib!e Budgets: <i#eo =ink: Can#y Canes http:66""".youtu&e.com6"atch>v?%eh:Mnymtfo 'note you can use "hatever seasonal can#y is availa&le+. Ask stu#ents "hy the company "oul# nee# a fle$i&le &u#get for can#y canes. 1ave stu#ents list ingre#ients, an# make a &u#get &ase# on e$pecte# level, high level, an# lo" level sales.

"utco#es: During class, stu#ents refer to the vi#eos "hen learning a&out factory processes in the pro&lems for items they are not familiar "ith an# these processes are e$plaine# in terms of the vi#eo. 1appy, enthusiastic learners 8( like coming to class every#ay9 1igh course evaluations ).C@ out of *.MM '3revious professors "ere in the 2 range+ Unconventional, you stan# out in the Accounting Department Course ;3A improve# ven "ithout the snacks the pro,ect "oul# have &een successful. Stu#ents fre7uently sai# that the snacks "ere nice, &ut that the real value "as &eing a&le to see ho" comple$ accounting issues coul# actually &e use# in &usiness Clips "ere short an# provi#e# a nice &reak to allo" stu#ents to re5charge &et"een pro&lems