An Experiential Approach to Teaching Inventory Cost Allocation Methods in Accounting

Abstract

In order to gain a better understanding of the Inventory Cost Allocation Methods, that represents the more commonly taught subject at university level around the world, the creative use of experiential learning exercises was employed. Undergraduate students commonly lack industry experience so role playing was used in teaching the topic to students at a North American University. Factors affecting students’ grades were analyzed. Results indicate that experiential approach was the most significant factor contributing to learning and success as measured by grade scores. Exam scores were higher when students took part in the experiential approach and gained confidence in their learning. This research provides valuable insights for research scholars and institutional educators of undergraduate accounting students.