Colegio de San Juan de Letran

Intramuros, Manila

College of Business Administration and Accountancy

ACCOUNTANCY AREA
Second Semester 2005-2006

I. Course Title : Management Accounting II

II. Course Number : Accounting 8-02

III. Credit : 3 units

IV. Pre-requisite : Accounting 7-02

V. Course Description : This second part of management accounting deals with the application of techniques and concepts focusing on
segment reporting, profitability analysis, and decentralization; information for decision making purpose ( short-term and long-term) and
non-financial indicators such as productivity per employee or per service unit; decision making affecting short-run operation of the
company; capital budgeting decisions; and environment cost accounting.

VI. Course Rationale : The CPA of today is not a mere auditor but a business advisor; therefore, entrants to the profession as business advisor
should know application of techniques used in management accounting.
VII. Course Objectives

A. General Objective :At the end of the course, the students are expected to have established a sound knowledge in the field of financial management as applied in
Management Advisory Services.
B. Specific Objectives :

Cognitive : Obtain a sufficient comprehensive knowledge in management decision-making processes such as planning and control techniques in
business operations.
Develop the ability to be analytical in the decision making process and further understand basic concepts of environment cost accounting.

Affective : Develop and exercise professional attitude by being honest, objective and technically components as well as to be intellectually
independent in giving advises and recommendations in rendering management services.
 Prepare and analyze accounting data, apply it to a range of planning, control and decision-making situations and adapt it to accommodate
change.

Psychomotor : Learn how to use computers and other office machines and an opportunity to apply computer skills to management accounting.
Compare strengths and weaknesses of capital investment evaluation methods.

Specific Objectives Subject Matter Values Strategies/Teaching Instructional Evaluation Time frame Expected
Integrated Methodology Materials Output

Identify the concepts and 1. Working Capital Management Judgment. Lecture-discussion Books Recitation 1sr week to Identified the
principles of working capital 1.1 Working capital policy Brainstorming Illustrative/ Quiz 3rd week concepts and
management in the day-to-day 1.1.1 Cash flow cycle Problem-solving Demonstration Short case principles of
business operations. 1.1.2 Sources and uses of working Internet Surfing Problems analysis working
capital Exercises capital
1.1.3 Level of working capital and Actrual FS and management
financing policies reports in the day-to-
1.2 Cash an marketable securities day business
management operations.
1.2.1 Objective and factors that
contribute to sound cash
management
1.2.2 Reasons for holding cash/
marketable securities
1.2.3 Management of cash collection
and disbursements
1.2.4 Matching of costs and benefits
of cash management
1.2.5 Type of risk related to
investment in marketable
securities
 1.3 Receivables Management
1.3.1 Objectives
1.3.2 Credit Policy
1.3.3 Analyzing changes in credit
policy variables
1.4 Inventory
1.4.1 Objectives
1.4.2 Inventory control system
1.4.2.1 Just-in-time (JIT)
1.4.2.2 Cost of Inventory
1.4.2.3 Economic order
quantity (EOQ)
1.4.2.4 Reorder Point
(ROP)

Discuss the basic concepts and 2. Capital budgeting concepts, processes Objectivity Lecture-discussion Books Quiz 4th week to Discussed the
principles of capital budgeting. and techniques Appreciation Question and Illustrative/ Recitation 9th week basic concepts
2.1 Non-discounted cash flow answer teaching Demonstration Research on and principles
2.2 Discounted cash flows method Problem-solving Problems actual of capital
2.2.1 Net present value and profitability Internet Surfing Exercises methods used budgeting.
index by the
2.2.2 Internal rate of return Actrual FS and industry in the
2.2.3 Discounted payback reports evaluation of
2.3 Cost of Capital the capital
investment
COMMUNITY SERVICE proposals
INTEGRATION

Explain social responsibility

and how it is applied to the Responsibility accounting Awareness Lecture-discussion Books Quiz Explained
adapted community. Appreciation Internet Surfing Illustrations social
Social responsibility
Responsibility and how it is
applied to the
MID-TERM EXAMINATION adapted
Identify the basic concepts and community.
principles of long-term 3. Long-term financing Develop one’s Question and Books Recitation 10th-13th Identified the
financing in making long-term decisions logical answer teaching Illustrative/ Quiz week. basic concepts
financing decisions. 3.1 Capital structure and thinking if Reporting Demonstration and principles
leverage faced with the Internet Surfing Problems of long-term
3.2 Raising debt capital and different Exercises financing in
equity capital situations making long-
3.3 Hybrid financing, relating to Actrual FS and term financing
preferred stock, leasing long-term reports decisions.
and option securities. financing
decisions.
Explain the usefulness of a Explained the
project feasibility study to the 4. Project Feasibility study Develop one’s Problem-solving Books Quiz 14th-18th usefulness of
potential investors and to the 4.1 Nature, purpose and component concern for Lecture-Discussion Illustrative/ Research on week a project
country. 4.2 Development and analysis of his fellowmen Reporting Demonstration the project feasibility
project revenue and cost under and his Internet Surfing Problems feasibility study to the
specific assumptions country in the Exercises study potential
4.3 Procedures in the preparation of project investors and
projected financial statements feasibility Actrual FS and to the country.
4.4 Analysis of financial projections study. reports
4.5 Sensitivity analysis
COMMUNITY SERVICE
INTEGRATION

Illustrate the procedures in Illustrated

preparing a feasibility study Actual preparation of a feasibility Objectivity Lecture-discussion Illustrations/ Project- the
and apply in the adapted study. Perseverance Internet Surfing Sample Simple procedures in
community. Patience Feasibility Feasibility preparing a
studies Study feasibility
study and
FINAL EXAMINATION apply in the
adapted
community.
VIII. Grading System:

MIDTERMS FINALS
CLASS STANDING 30% CLASS STANDING 30%
QUIZZES 30% QUIZZES 30%
MIDTERM EXAM 40% FINAL EXAM 40%

MIDTERM GRADE 100% PRE-FINAL GRADE 100%

FINAL GRADE

MIDTERM 50% + PRE-FINAL GRADE 50% = 100%

IX. Course Policies:

Policies on attendance, tardiness and academic dishonesty are found in the Student Handbook.
In case of missed examination and assignments, the student is given the chance to make-up within a week from the day he/she reported,
otherwise, it will be equivalent to 50%.

X. Textbook

Hansen, M., Management Accounting, 4th edition

XI. References:

Rodelio S.Roque, Management Advisory Services , 2004 edition

Elenita B. Cabrera, Management Services, 2004 edition
Dominick and Louderback. Managerial Accounting, 2004 edition