PAMANTASAN NG LUNGSOD NG MAYNILA (University of the City of Manila) Intramuros, Manila COLLEGE OF ACCOUNTANCY AND ECONOMICS COURSE SYLLABUS

COURSE CODE COURSE TITLE : ACN 42 : FUNDAMENTALS OF MANAGEMENT ACCOUNTING

COURSE DESCRIPTION: This course is intended for BSBA students. It covers the use of accounting data to guide management in planning and controlling business operations and in decision making. Prerequisite: Fundamentals of Accounting II (ACN 52) Total hours: 52 (3 hours a week) Credit : 3 units COURSE OBJECTIVES: At the end of the course, the student is expected to: 1. Know and appreciate the uses of accounting information in discharging management functions of planning, controlling and decision making 2. Develop the basic skills in applying management accounting techniques to help management achieve its operational objectives. 3. Appreciate the use and importance of accounting for business. 4. Realize the need for management information system. 5. Develop desirable work habits such as accuracy and neatness in the preparation of management accounting reports. 6. Integrates the value of honesty, objectivity, and integrity in the management accounting process. 7. Develop awareness of the social responsibilities of the business enterprise. COURSE CONTENTS: UNIT I - Introduction to Management Accounting 3 hours 1. Organization and their objectives 2. Organizational structure 3. Managers need for information 4. Comparison of financial accounting and managerial accounting 5. Role of the controller II - Cost terms, concepts, classifications 1. Cost terms and terminology 2. General cost classifications 3. Cost classifications in financial statements 3 hours

III - Cost Accounting Systems: An overview 1. Job-order costing 2. Process Costing 3. Standard Costing 4. Absorption costing vs. Variable Costing IV - Cost Volume Profit Analysis 1. Basics of cost-volume profit analysis 2. Break-even analysis 3. Cost Behavior: Analysis and use

7 hours

7 hours

V - Analysis and interpretation of financial statements 7 hours 1. Objectives and limitations of financial statements analysis 2. Analysis of a firms solvency, stability and profitability using: a. Financial ratios b. Common size statements c. Comparative statements showing increase/decrease in amounts and percentage d. Trend percentages VI Budgeting and Variance Analysis 7 hours 1. Definition of budgeting 2. Advantages and limitations of budgeting 3. Steps in preparing the master budget a. Preparation of projected income statement b. Preparation of projected balance sheet c. Preparation of projected cash flow 4. Interpretation of the performance report showing variance analysis VII Relevant costs for decision making 1. Framework of decision -making 2. Non-routine decision-making problems a. Make or buy b. Accept or reject special order c. Sell as is or process further d. Eliminate or retain a product line or department e. Continue operations or shut down f. Pricing 3. Capital investment decision a. Factors to consider in evaluating capital investment proposal i. Net investment ii. Net cash returns iii. Minimum desired rate of return b. Analysis techniques i. Discounted cash flow a) Net present value b) Discounted rate of return c) Profitability index ii. Payback period iii. Accounting rate of return 7 hours

METHODOLOGY: Lecture Forum and Presentation, Recitation, Board Work, Case Analysis, Group Dynamics, Problem Solving, And Brainstorming COURSE REQUIRMENTS/EVALUATION TECHNIQUES: a. Course Requirements: Examinations : Assignments: Class Participation

Quizzes, Midterm Examination Final Examination Exercises and Problems from the textbook Recitation, Board Work

b. Grading Criteria Quizzes Assignment Recitation Attendance and Behavior Midterm Examination Final Examination REFERENCES:

30% 10% 10% 10% 20% 20% 100%

Prescribed Textbook: Managerial Accounting, Philippine edition by Sawyers, Jackson & Jenkins Other references: Managerial Accounting by Neddles Anderson & Caldwell Management Accounting by Peralta Introduction to Management Accounting by Nenita Mejorada Accounting for managerial decision, by De Coster, Don Management for profit control, by Keller