F-ODI-2056 1

Republic of the Philippines

Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

SYLLABUS IN STRATEGIC COST MANAGEMENT AE23

The Cagayan State University aims to produce graduates who will exhibit:
Competence - critical thinker, creative problem-solver, competitive performer regionally, nationally and globally
Intended Graduate Social Responsibility - sensitive to ethical demands and compassionate particularly to the marginalized, steward of the environment for future
Attributes generations while championing development and socially just and an advocate of economic and social equity
Unifying Presence - uniting theory and practice, uniting strata of society, uniting tradition and innovation, uniting the nation, the ASEAN region
and the world and uniting the University and the community
Graduates of the college will be able to:
1. apply knowledge and skills acquired with attitudes and values to the development of business, industry and entrepreneurship, locally,
nationally, regionally and globally;
2. initiate and participate in research that allows commerce and enterprise to be responsive to the challenges of inclusive growth and
College Intended
progress;
Learning Outcomes
3. exhibit social responsibility, a firm commitment to social justice and particular solicitude to the marginalized sectors of society;
4. manifest personal and interpersonal skills imbued with professional ethics and perform tasks in a gender responsive manner;
5. work effectively and independently in multi-disciplinary and multi-cultural teams; and
6. preserve and promote “Filipino historical and cultural heritage.

At the end of the program, the graduates in Bachelor of Science in Accountancy are expected to:

1. resolve business issues and problems, with a global and strategic perspective using their knowledge and technical proficiency in the
areas of financial accounting and reporting, cost accounting and management, management accounting and control, taxation
and accounting information system
Program Intended 2. conduct Accountancy research through independent studies of relevant literature and appropriate use of accounting theory and
Learning Outcomes methodologies
3. employ technology as business tool in capturing financial and non-financial information, generating reports and making decisions.
4. Apply knowledge and skills that will enable them to successfully respond to various types of assessments (including professional
licensure and certification); and
5. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions as
accountant.

Revision No. 03 September 12, 2019

 F-ODI-2056 2
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

COURSE MAP
After completion of the course, the students should be able to: PILO 1 PILO 2 PILO 3 PILO 4 PILO 5
1. Comprehend and Demonstrate Mastery of the Strategic Management Techniques and principles. X X X
2. Discuss, comprehend and demonstrate knowledge of cost-volume-profit (CVP) analysis X X X
3. Discuss the concept of Activity Based Costing (ABC) and Activity Based Management (ABM) X X X
4. Discourse about the principles of Standard Costing. X X X
5. Provides an overview of Pricing and Profitability Analysis X X X
6. Enumerate the steps to complete a master Budget. X X X
7. Exhibit mastery of the ramifications of decentralization. X X X X
8. Enumerate the various situations wherein Tactical Decision Making is indispensable X X X
9. Discuss the essence of Strategic Cost Management to a business’ survival. X X X X
10. Compute and interpret cost-volume-profit related circumstances in management. X X X X
11. Compute and allocate costs using Activity Based Costing (ABC) and Standard Costing. X X X X
12. Prepare entries related to Activity Based Costing and Standard Costing. X X X X
13. Conduct Pricing and Profitability Analysis X X X X
14. Prepare the master budget. X X X X
15. Prepare tactical decision-making computations and provide the best alternative course of action. X X X

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 F-ODI-2056 3
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Course Code AE 23 Course Title STRATEGIC COST MANAGEMENT

Credit Units 3 Semester Second School Year 2019 - 2020 Number of Lecture Hours 54

Pre-Requisite/s AE 22 Cost Management and Control Co-Requisite/s None Number of Laboratory Hours None

Course Description
Course Description. This course is designed to further your cleverness about managerial advisory competence. In essence, it is the
application of the principles you have mastered in the course cost management and control. The concepts of tactical decision making will be
emphasized and added to your reserve of strategic business dexterity. We will be discussing the topics: cost-volume-profit (CVP) analysis,
Activity Based Costing (ABC) and Activity Based Management (ABM), Standard Costing, Pricing and Profitability Analysis, Budgeting for
Profit and Control, Decentralization, Activity Resource Usage Model and Tactical Decision Making, and finally, the Strategic Cost
Management as a swift application of all themes. Short Case Analysis would be introduced too. So, steam up, charge your brains and ready
your calculators or rather buy a new one because we would be dealing with a lot of numbers for more informed decision making.

Class Standing 20%

Attendance 5%
Recitation 5%
Seatwork/Quiz 5%
Grading System Assignment 5%
Quizzes 30%
Department Examination 50%
Total 100%

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F-ODI-2056 4
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Course Learning Plan

TIME TEACHING AND TEACHING AND TEACHING AND

LEARNING
ALLOTMEN LEARNING LEARNING LEARNING RESOURCES
COURSE LEARNING OUTCOMES Learning Content ASSESSMENT
T ACTIVITIES REFERENCES

LEC LAB

At the end of the session, the Class Orientation 1  Sharing  Student Manual  Chalkboard  Recitation of
students should be able to: expectations  Syllabus  Student manual names,
1. Getting to Know each Other from the classroom
 Name and recognize the teacher and 2. House Rules teacher and rules, vision,
co-students 3. Grading System the students mission and
 Summarize classroom rules; 4. Overview of the Course.  Lecture philosophy.
 Discuss the subject coverage and 5. Use of the Syllabus  Discussion  Discussion of
requirements. 6. Generalization, inquiries and subject
 Discuss the importance of the course valuing coverage
syllabus.
 Describe the relationship of the
course to the school’s vision-mission
and philosophy
At the end of the session, the 1. Cost-Volume-Profit (CVP) Analysis 6  Definition of  Hansen & Mowen  Chalkboard  Recitation
students should be able to: terms (2019), Strategic  Calculator  Quiz
a. Basic Concepts for CVP Analysis  Preparation Cost Management  Case analysis
 Enumerate the components of CVP b. The CVP Graph of CVP
Chap. 1, pp. 1-33
analysis c. The Equation Method for Break-Even analyses.
 Making  Notes
 Compute for break-even point in and Target Income
sales units and pesos using the two d. Contribution Margin Approach appropriate  Hand-outs
approaches. e. The Break-Even Point and Target Profit decisions
in Units and Sales Revenue
f. After-Tax Profit Targets

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Compute the target sales, profits, g. Changes in CVP variables

before and after taxes, including  Margin of Safety
changes in variable if necessary.  Operating Leverage
 Explain the CVP graph  Sensitivity Analysis
 Compute for and explain margin of h. Sales Mix
safety and operating leverage.
 Compute for and decide for the most
appropriate course of action

At the end of the session, the  Chalkboard  Recitation

2. Activity Based Costing (ABC) and   Calculator
students should be able to:
5
Hansen & Mowen  Quiz
Activity Based Management (ABM)  Exercises on  Projector
(2019), Strategic  Short research
 Explain the relationship between cost
Cost Management
ABC and ABM. 1. Basic Concepts of ABC assignment.
2. Activity-Based Management  Definition of Chap. 8, pp. 405-
 Discuss the implementation of
3. The Relationship of Activity-Based terms 431
ABM and causes of failures.
Costing and  Preparation of  Notes
 Compare and contrast Financial-
Based versus Activity-Based 4. Activity-Based Management entries.  Hand-outs
Responsibility Accounting At the 5. Implementing Activity-Based
end of the session, the students Management
should be able to:  Discussion of the ABM
 Explain the relationship between Implementation Model
ABC and ABM.  Systems Planning
 Discuss the implementation of  Activity Identification,
ABM and causes of failures. Definition, and Classification
 Compare and contrast Financial-  Why ABM Implementations Fail
Based versus Activity-Based 6. Financial-Based versus Activity-
Responsibility Accounting Based Responsibility Accounting

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Establishing & evaluating

Performance
7. Assigning Rewards

At the end of the session, the 3. Standard Costing  Chalkboard  Recitation

students should be able to:  Flores, Integrated  Calculator  Quiz
6
1. The Standard Costing Process  Exercises on Cost Accounting  Projector  Seatwork
 Discuss the Standard Costing 2. Advantages, disadvantages & cost
(2016)
Process limitations of Standard Costing assignment
and variance Chap. 14, pp. 315-
 Discuss the Advantages, 3. Types of Variances
computations. 341
disadvantages & limitations of  Direct material  Definition of 
Standard Costing Notes
 Direct labor
 Compute for the variances
terms  Hand-outs
 Overhead  Preparation of
 Allocate variances to appropriate 4. Allocation of variances entries.
 Prepare journal entries 5. Standard costing Income statement
 Prepare the standard costing 6. Prepare standard costing journal
income statement
entries

----------PRELIMINARY EXAMINATION----------
At the end of the session, the 4. Pricing and Profitability Analysis  Chalkboard  Recitation
students should be able to:  Hansen & Mowen  Calculator  Quiz
6  Exercises on
1. Basic Pricing Concepts (2019), Strategic  Projector  Homework
pricing
 Discuss the concept behind  Demand and Supply computations Cost Management
pricing.  Price Elasticity of Demand & profitability Chap. 2, pp. 57-90
 Enumerate and discuss the  Market Structure and Price analysis.  Notes
different pricing techniques 2. Cost and Pricing Policies  Definition of
 Hand-outs
 Discuss the illegal pricing  Cost-Based Pricing terms
practices.  Discussion
 Target Costing and Pricing
 Other Pricing Policies

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Compute for profit under 3. The Legal System and Pricing

absorption and variable costing
approaches
 Compare and contrast
absorption and variable costing
approaches
 Compute for divisional profit
and integrated profit.
 Discuss why profit computation
is needed.
 Predatory Pricing
 Price Discrimination
4. Measuring Profit
1. Why Measure Profit
2. Absorption-Costing Approach
3. Variable-Costing Approach
4. Profitability of Segments,
divisions and product lines
5. Divisional & overall Profit

At the end of the session, the 5. Budgeting for Profit and Control  Preparation of  Hansen & Mowen  Chalkboard  Preparation of a
students should be able to: budgets (2019), Strategic  Calculator comprehensive
8  Definition of budget
1. The Role of Budgeting in Planning Cost Management  Projector
 Discuss the role of budgeting for and Control terms  Quiz
 Discussion Chap. 4, pp. 164-
planning and control  Purposes of Budgeting
 Prepare both operating and financial 207
 The Budgeting Process
budgets  Notes
 Forecasting Sales
 Prepare and discuss flexible budgets  Hand-outs
 Forecasting Other Variables
2. Preparing the Operating Budget
 Sales
 Production
 Direct Materials Purchases
 Direct Labor
 Overhead
 Ending Finished Goods
 Cost of Goods Sold

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Marketing Expense
 Administrative Expense
 Additional Operating
 Income Statement
 Budget for Merchandising &
Service Firms

3. Preparing the Financial Budget

 The Cash Budget
 Budgeted Balance Sheet
4. Flexible Budgets for Planning and
Control
5. Static Budgets versus Flexible
Budgets

At the end of the session, the 6. decentralization: Responsibility  Exercise:  Hansen & Mowen  Chalkboard  Recitation
students should be able to: Accounting, Performance Computation (2019), Strategic  Calculator  Quiz
8 of transfer
Evaluation and Transfer Pricing Cost Management  Projector
 Discus responsibility accounting prices.
 Lecture Chap. 6, pp. 282-
 Discuss decentralization and its 1. Responsibility Accounting
 Discussion 316
units  Types of Responsibility Centers
 Notes
 Discuss the relevance of transfer  The Role of Information and
 Hand-outs
pricing in relation to performance Accountability
evaluation and incentives. 2. Decentralization
 Compute for transfer prices using  Reasons for Decentralization
the different methods.  The Units of Decentralization
3. Measuring the Performance of
Investment Centers

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Return on Investment
 Residual Income
 Economic Value Added
 Multiple Measures
4. Measuring and Rewarding the
Performance of Managers
 Incentive Pay for Managers-
Encouraging Goal Congruence
 Managerial Rewards
 Measuring Performance in the
Multinational Firm
5. Transfer Pricing
 Transfer Pricing & Income
6. Setting Transfer Prices
 Market Price
 Negotiated Transfer Prices
 Cost-Based Transfer Prices
 Transfer Pricing in
Multinational Firms

----------MIDTERM EXAMINATIONS----------

At the end of the session, the 7. Activity Resource Usage Model and
students should be able to: Tactical Decision Making  Chalkboard  Recitation
10  Definition of
 Hansen & Mowen  Calculator  Quiz
terms
 Discuss the Tactical Decision- 1. Tactical Decision Making (2019), Strategic  Projector
 Computation of  Case Analysis
Making Process  The Tactical Decision-Making relevant costs Cost Management
 Differentiate relevant cost from Process  Computation
irrelevant cost. for and

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Compute and decide on tactical  Qualitative Factors interpretation Chap. 3, pp. 119-
decisions 2. Relevant Costs and Revenues of tactical 142
 Relevant Costs analyses
 Notes
 Irrelevant Cost  Hand-outs
3. Relevancy, Cost Behavior, and the
Activity Resource Usage Model
 Flexible Resources
 Committed Resources
4. Sample Tactical Decision Making
 Make-or-Buy
 Operate or shutdown
 Special-Order Decisions
 Keep-or-Drop Decisions
 Sell as is or Process Further
5. Relevant Costing and Ethical
Behavior

At the end of the session, the 8. Strategic Cost Management  Recitation

students should be able to:
4  Lecture  Chalkboard  Quiz
1. Basic Concepts  Hansen & Mowen 
 Discussions  Calculator Case analysis
 Discuss the Basic Concepts & 2. Strategic Positioning  (2019), Strategic
Preparation of  Projector  Short
Strategic Positioning  Cost Leadership entries Cost Management
 Discuss the concept of Value- Research
 Differentiation Chap. 9, pp. 453-
Chain and value-Chain Analysis  Focusing 473
 Explain life cycle cost 3. Value-Chain Framework, Linkages,
management  Notes
and Activities  Hand-outs
 Discuss JIT and backflushing 4. Value-Chain Analysis
 Exploiting Internal Linkages

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Exploiting Supplier Linkages

 Exploiting Customer Linkages
5. Life-Cycle Cost Management
 Product Life-Cycle Viewpoints
 Interactive Viewpoint
 Role of Target Costing
6. Just-in-Time (JIT) Manufacturing
and Purchasing
7. JIT and Its Effect on the Cost
Management System
 Traceability of Overhead Costs
 Product Costing
 Backflush Costing
 Variations 1 and 2, 3 and 4

----------FINAL EXAMINATIONS----------

RUBRIC FOR ASSESSMENT TO BE USED FOR MCOs

Criteria (Short Case analysis) Excellent Good Satisfactory Unsatisfactory

91 - 100% 81 - 90% 71 - 80% 70 - 61%

Evidence of preparation (organized presentation, presentation/discussion flows well, no awkward pauses or confusion from the
group, evidence you did your homework)

Content (group presented accurate & relevant information, appeared knowledgeable about the case studies assigned and the topic
discussed, offered strategies for dealing with the problems identified in the case studies)

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Connection (group identified campus resources to help with the problem/issues, discussed relevance to own experience)

Delivery (clear and logical organization, effective introduction and conclusion, creativity, transition between speakers, oral
communication skills—eye contact)

Discussion (group initiates and maintains class discussion concerning assigned case studies, use of visual aids, good use of time,
involves classmates)

OTHER COURSE REQUIREMENTS

Aside from the major course outputs, the student will be assessed at other times during the term by the following:
 Class Participation
 Seatwork
 Group Report
COURSE POLICIES:
• Attendance – Students are required to attend classes regularly. Attendance is 5% of the total grade. Once a student acquires absences of more
than 20% of the total number of meetings, the students will automatically get a failing grade.
• Class participation – Students are encouraged to participate in all class activities.
• Late work – Late submission of work will get points deduction (5% deduction per day)
• Missed exams – Students who missed a quiz will not be given a special quiz unless excused with an SO. A special exam may be given to a student
who missed a major exam but have a different type of exam.
• Academic integrity – Students must be honest and respectful at all times.
• Requests for extensions and for rescheduling of exams – In case the teacher is not available on the scheduled examination date, rescheduling will
be decided by the entire class.
• Expectations for student conduct in the classroom or laboratory – The students are expected to submit quality and authentic output in all activities.

Input for Revision: Updated the Following Areas:

Learning Contents and Outcomes;
Teaching and Learning Activities;
Teaching and Learning References

Revision No. 03 September 12, 2019

F-ODI-2056 13
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

References:

Textbooks:
 Hansen, Don R. & Mowen, Maryanne M. (2019) Strategic Cost Management, C&E Publishing Inc, Quezon City
 Flores, Marlon O. (2016) Integrated Cost Accounting, Principles and Applications (1st Edition), Rex Printing Company, Inc., Quezon City

Other suggested books:

 Cabrera, Ma. Elenita B. & Cabrera, Gilbert A. B. (2019) Strategic Cost Management, GIC Enterprises & Co., Inc., Manila
 Guerrero, P. (2017), Cost Accounting: Principles and Procedural Applications, GIC Enterprises & Co., Inc.
 Cabrera, Ma. Elenita B., (2017) Management Accounting Concepts and Applications, GIC Enterprises & Co., Inc., Manila
 Cabrera, M. (2017), Management Advisory Services: Comprehensive CPA Reviewer, GIC Enterprise & Co., Inc.
 Flores, Marlon O. (2016) Integrated Cost Accounting, Principles and Applications (1st Edition), Rex Printing Company, Inc., Quezon City
 Horngren, Charles T., et al (2013) Cost Accounting, A Managerial Emphasis(14th edition), Pearson Education Limited, England
 Mowen, Maryanne M., Hansen, Don R.(2013), Introduction to Cost Accounting, Cengage Learning Asia Pte Ltd
 Roque, Rodelio S., (2010) Reviewer in Management Advisory Services, GIC Enterprises & Co., Inc., Manila
 Raiborn, Kinney, Prather-Kinsey (2009) Cost Accounting (7th ed.), South-Western, Thomson Learning Asia, Singapore

Internet sites:
1. http://cpadiary.wordpress.com
2. www.cengagebrain.com
3. www.myaccountinglab.com
4. icpa.com

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Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Prepared by: Date of Revision/Enrichment: January 31, 2020

Victor P. Mangoma, CPA, MBA

Faculty

Reymond I. Domingo, CPA, MBA/Cornelio A. Addun, CPA, MBA

Program Coordinator/Department Chair

Endorsed by:

Antonia Josefa A. Taguinod, MBM

College Dean

Approved by:

MARIDEN VENTURA-CAUILAN, DPA

Vice President for Academic Affairs

Revision No. 03 September 12, 2019