UNIVERSITY OF THE CORDILLERAS

Baguio City

COLLEGE OF ACCOUNTANCY
BACHELOR OF SCIENCE IN FINANCIAL AND MANAGEMENT ACCOUNTING

Course Syllabus

COURSE CODE: MS 1
COURSE NAME: MANAGERIAL ACCOUNTING

COURSE DESCRIPTION: The course is a 6-unit course, which covers the basic consideration in Management Advisory Services (MAS); how and when it is required. It provides
students a board description of the nature of management services, how they arte conducted, what specific techniques may be applied. Management
Advisory Services can be described as the function of providing professional advisory (consulting) services, the primary purpose of which is to
improve the client's use of it's capabilities and resources to achieve the objectives of the organization.

PLACEMENT: Third Year, First Trimester

CREDIT: 6 units (2 Hours and 50 minutes Lecture three times a week)
PREREQUISITE: Financial Accounting Part 2 (Acctg. 8/9), FMA 1 (Cost Accounting)

GENERAL OBJECTIVES: At the end of the course, the student shall be able to:

CO# Description PO1 PO2 PO3 PO4 PO5 PO6 PO7

CO1 Analyze and solve problems as follows: 3 3 3 3 3 3 3
a. Ascertain the pertinent facts and circumstances;
b. Seek and identify problem objectives;
c. Define problem or opportunities for improvement; and
d. Evaluate and determine possible solutions or alternatives.

CO2 Prepare special financial statements and reports and conduct an in-depth analysis and interpretations of the 3 3 3 3 3 3 3
results of operations and financial condition of an enterprise.

CO3 Analyze transactions and realize that accounting process is not static, but progressive which must respond to 3 3 3 3 3 3 3
changes in economic, political and social environment.

COURSE CONTENT:

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 Objectives Topics Number of Grading Teacher Learning Assessment Tools
Meetings Period Activities

1. Explain the basic consideration in Management UNIT 1 Introduction to Management 1 meeting Prelims Lecture, Paper and Pen
Advisory Services. Advisory Services: Entering the New Field in Peer-Assisted, Checklist
2. Identify qualifications needed in Management Management Accounting Teacher-Assisted, Interview Guide
Advisory Services Consultants. Active/Mock Review, Rubric
Peer/Team
3. Differentiate Managerial Accounting from Topics:
Teaching/Sharing
Financial Accounting. 1. Management Advisory Services Problem-Based
4. Describe the nature, scope, objectives and defined/scope/characteristics Learning
responsibility of management accounting. 2. Professional qualifications ion the practice Experiential
5. Differentiate controllership and treasurership. of Management Advisory Services Task
3. Certified Public Accountants (CPAs) as Analysis/Conceptual
Consultants Analysis/ Case Study
4. Management Advisory Services Practice Writing Exposition-
Standards Worksheet
5. Stages of Management Advisory Services Oral Expositions-
Engagement Reporting, Defense
6. Management Advisory Services Proposal
Letter
7. Managerial Accounting and Financial
Accounting Distinguished
8. Management Accounting and the Business
Environment
1. Identify the basic financial statements and UNIT 2 Understanding Financial 2 meetings Prelims Lecture, Paper and Pen
explain its contents. Statements: The Business Communication Peer-Assisted, Checklist
2. Explain the basic objectives of analyzing medium Teacher-Assisted, Interview Guide
financial statements. Active/Mock Review, Rubric
Peer/Team
3. Describe the general approaches in financial Topics:
Teaching/Sharing
statement analysis. 1. Financial Statements (Balance Sheet, Problem-Based
4. Enumerate the steps in financial statement Income Statement, Retained earnings, Cash Learning
analysis. Flow, Notes to Financial statements) Experiential
5. Explain the limitations of financial statement 2. Financial Statement Analysis 1 and 2 Task
analysis. 3. Cash Flow Statement Analysis Analysis/Conceptual
6. Evaluate and Interpret financial ratios in 4. Gross Profit Analysis Analysis/ Case Study
evaluating the company’s financial position and 5. Earnings per share determination. Writing Exposition-
operation performance. Worksheet
7. Determine the factors that affect gross profit Oral Expositions-
and apply the methods of analyzing gross profit Reporting, Defense
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variation.
1. Explain the nature of cost. UNIT 3 Cost Concepts, Classification, 2 meetings Prelims Lecture, Paper and Pen
2. Identify and explain how the various Behavior and Applications: Basic foundation Peer-Assisted, Checklist
classifications of costs. of Management Accounting Teacher-Assisted, Interview Guide
3. Describe and explain how costs are presented Active/Mock Review, Rubric
Peer/Team
on the financial statements of manufacturing, Topics:
Teaching/Sharing
merchandising and service oriented companies. 1. Cost concepts and classifications Problem-Based
4. State and illustrate the importance of 2. Cost behavior: Analysis and use Learning
understanding cost behavior. 3. Systems design: Job Order costing, 4. Experiential
5. Differentiate Job Order costing, Process Process Costing and Activity Based Costing Task
Costing and Activity Based Costing Analysis/Conceptual
Analysis/ Case Study
Writing Exposition-
Worksheet
Oral Expositions-
Reporting, Defense
1. Describe a centralized from a decentralized UNIT 4 Decentralized Operations and 2 meetings Prelims Lecture, Paper and Pen
type of organization. Responsibility Accounting System and Peer-Assisted, Checklist
2. Explain the importance of a decentralized in a Transfer Pricing Teacher-Assisted, Interview Guide
responsibility accounting. Topics: Active/Mock Review, Rubric
Peer/Team
3. Describe the different types of responsibility 1. Nature of Decentralized operations
Teaching/Sharing
centers. 2. Advantages of Decentralization Problem-Based
4. Evaluate performance of a profit, cost, 3. Concepts, Objectives and Advantages of Learning
investment or revenue center. Responsibility Accounting Experiential
5.Define transfer pricing and discuss the needs in 4. Cost centers, Profit centers, Investment Task
a decentralized organization Centers and Revenue Centers Analysis/Conceptual
6. Explain the general approaches in setting 5. Segment Reporting Analysis/ Case Study
transfer prices. 6. Rationale and definition of Pricing Writing Exposition-
7. Discuss the need for transfer price Worksheet
8. Alternative transfer pricing schemes Oral Expositions-
Reporting, Defense
1. Differentiate Variable Costing from Absorption UNIT 5 Variable (Direct) Costing: A 2 meetings Prelims Lecture, Paper and Pen
Costing; Precision Gem in the Treasures of Peer-Assisted, Checklist
2. Prepare income statements under variable and Management Teacher-Assisted, Interview Guide
Active/Mock Review, Rubric
absorption costing methods Peer/Team
Topics:
Teaching/Sharing
1. Nature of Variable Costing and Absorption Problem-Based
Costing Learning
2. Variable Costing and Absorption Costing Experiential
Distinguished Task
3. Advantages and disadvantages of Variable Analysis/Conceptual
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 Costing Analysis/ Case Study
4. A balanced sales and production Writing Exposition-
Sales and production out of balanced Worksheet
5. Preparation of income statement under Oral Expositions-
variable and Absorption Costing. Reporting, Defense
6. Comparison and reconciliation of net
income under variable and absorption costing
1. Apply the different formulas in Break-even UNIT 6 Break-even Analysis: An 2 meetings Prelims Lecture, Paper and Pen
Point Analysis Indispensable Management Decision-Making Peer-Assisted, Checklist
2. Identify the different type of cost used in Tool. Teacher-Assisted, Interview Guide
Topics: Active/Mock Review, Rubric
Break-even Point Analysis Peer/Team
1. Definition, Nature, Scope
Teaching/Sharing
2. Variable Costs, Fixed Costs & Contribution Problem-Based
Margin Learning
3. Margin of Safety Experiential
4. Mix (Composite) Break-even. Task
Analysis/Conceptual
Analysis/ Case Study
Writing Exposition-
Worksheet
Oral Expositions-
Reporting, Defense
Prelim Examinations (1 meeting)
UNIT 7 Budgeting: An Indispensable 5 meetings Midterms Lecture, Paper and Pen
1. Identify all the composition of a master budget Instrument for Business Survival Peer-Assisted, Checklist
2. Construct all the different budgets covered by Teacher-Assisted, Interview Guide
Topics: Active/Mock Review, Rubric
the master budget. Peer/Team
1. Definition, nature, scope
Teaching/Sharing
2. Budget defined/types and uses of budget Problem-Based
3. Composition of a master budget Learning
4. Steps in budget preparation Experiential
5. Detailed illustration of each of the Task
components of the master budget through Analysis/Conceptual
problem-solving Analysis/ Case Study
Writing Exposition-
Worksheet
Oral Expositions-
Reporting, Defense
1. State the essential ideas that in standard costing, UNIT 8 Standard Costing: The Ladder to 7 meetings Midterms Lecture, Paper and Pen
costs and inventory amounts are recorded at what Attain Business Peer-Assisted, Checklist
cost should have been rather that what actually Topics: Teacher-Assisted, Interview Guide
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were; and 1. Basis of setting standards Active/Mock Review, Rubric
2. Analyze materials price/quantity variances, 2. Analysis of Materials cost variance Peer/Team
labor rate/efficiency variances and factory Material Quantity Variance Teaching/Sharing
Material Price Variance Problem-Based
Overhead variances under fixed and flexible Learning
3. Analysis of Labor Cost variance
budgets. Experiential
Labor Efficiency Variances under the Task
fixed budget Analysis/Conceptual
Labor Rate variance Analysis/ Case Study
4. Analysis of Factory Overhead Writing Exposition-
Variances under the fixed budget Worksheet
Two-variance method Oral Expositions-
Three-variance method Reporting, Defense
5. Analysis of Factory Overhead under the
flexible budget
Two-variance method
Three-variance method
Four-variance method
Material mix variance

Midterm examinations ( 1 meeting)

1. Describe the decision making process. UNIT 9 Relevant Revenue, Costing and 5 meetings Finals Lecture, Paper and Pen
2. Distinguish between relevant and irrelevant Decision Making: A Tool Financial Managers Peer-Assisted, Checklist
cost in decision-making purposes. Use Teacher-Assisted, Interview Guide
3. Apply incremental and total analysis approach Topics: Active/Mock Review, Rubric
Peer/Team
in decision making purposes. 1. Decision making process
Teaching/Sharing
2. Identifying relevant costs Problem-Based
3. Types of decisions Learning
 Make or buy Experiential
 Add or drop a product or other segment Task
 Sell now or process further Analysis/Conceptual
 Utilization of scarce resources Analysis/ Case Study
Writing Exposition-
 Shut-down or continue operations
Worksheet
Pricing Oral Expositions-
Reporting, Defense
1. Present Annual budget for capital investment; Unit 10 Capital Budgeting: The Road Map to 6 meetings Finals Lecture, Paper and Pen
2. Asses funding capacities; and Growth in Business Peer-Assisted, Checklist
3. Evaluate the allocation of resources to renewal Teacher-Assisted, Interview Guide
Topics: Active/Mock Review, Rubric
and expansion projects with most clearly Conform Peer/Team
with the company's priorities. 1. Definition, nature and scope
Teaching/Sharing
2. Characteristics of Capital Budgeting Problem-Based
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 3. Factors to consider in evaluating capital Learning
expenditures Experiential
 Net investment Task
Analysis/Conceptual
 Net returns
Analysis/ Case Study
 The lowest acceptable rate of return Writing Exposition-
4. Techniques used in analyzing capital Worksheet
expenditures Oral Expositions-
5. Methods, which do not consider the time Reporting, Defense
value of money.
a. Payback Period
b. Accounting rate of return
c. Methods which consider the time value of
money
d. Net present value
e. discounted rate of return
f. profitability index
g. discounted payback period
Final Examinations ( 1 meeting)

TEACHING-LEARNING ACTIVITIES (TLA):

TLA CO1 CO2 CO3

Lecture (L) 10 % 10 % 10 %
Problem-solving (PS) 20 % 20 % 20 %
Case Analysis (CA) 20 % 20 % 20 %
Group works (GW) 15 % 15 % 15 %
Illustrative Problem Analysis (IPA) 20 % 20 % 20 %
Class discussions (CD) 10 % 10 % 10 %
Topic Synthesis (TS) 5% 5% 5%

ASSESSMEN TOOLS (AT):

AT CO1 CO2 CO3

Quizzes (Q) 40 % 40 % 40 %
Case Presentation (CP) 4% 4% 4%
Seatwork (S) 2% 2% 2%
Assignments (A) 2% 2% 2%
Examination (E) 50 % 50 % 50 %
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Recitations (R) 2% 2% 2%

COMPUTATION OF SCORES:

Prelims:
Prelim Grade = 10% SW/A + 40% QUIZ + 50% EXAM
Midterms:
Raw Midterm Grade = 10% SW/A + 40% QUIZ + 50% EXAM
Midterm Grade = 50% Prelim Grade + 50% Midterm Raw Score

Finals:
Raw Final Grade = 10% SW/A + 40% QUIZ + 50% EXAM
Final Grade = 50% Midterm Grade + 50% Raw Final Grade

Note: For BSA students, retention grade is 85.

REFERENCES:

A. Textbook:
Cabrera, Elenita Balatbat, Management Advisory Services- Management Accounting Concept and Application, 2011

B. Books:
Agamata, F. T (2010). Management advisory services: a comprehensive guide (2010 ed.) Manila: GIC Enterprises AcL 658. 1511 G193 2006
Agamata, F. T. (2008) Reviewer in Management Advisory Services (2008 ed.) Manila: GIC Enterprises AcL 658. 1511076 R685 2005
Berry, Leonard . Management Accounting. Mc Graw Hill Co. (2009) (Acl 658.1511 B459 2009)
Brewer, Peter C, Garrison, R. Noreen, E. Introduction to Managerial Accounting. Mc Graw Hill. (2008) (Acl 658.1511 B758 2008)
Edmonds, Thomas P., Edmonds, Cindy D, et al.. Fundamental Financial and Management Concepts. (2007) ( Acl 658.1511 E952 2007)
Garrison, R. H., Noreen, E. W., Brewer, P. C. (2009). Managerial accounting (11 th ed.)Boston: McGraw/ Irwin.
Hilton, Ronald W. Managerial Accounting. Mc. Graw Hill Co. (2007) (Acl 658.1511 H567 2007)
Roque, R. S. (2005). Reviewer in management advisory services (2007 ed.) Malabon City: Roque Press.AcL 658. 1511 W251 2007
Warren, Carl S., Reeve, James and Philip Fess. Managerial Accounting. Thompson, Southwestern. 8 th edition. 2009 (Acl 658.1511 W251 2009)
Warren, C. S., Reeve, J. M. (2007). Managerial accounting (9 th ed.) Australia: Thomson/ South-Western. AcL 658. 1511 Ag14 2007
Williams, Jan R., Haka and Bettnes. Financial Managerial Accounting (Ac. 657.48 W673 2007) Acl 658.1511076 Ag14 2008

C. Online References
www.auburn.com;
www.elearners.com;
www.databasics.com;
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 www.neiu.edu.
www.maaw.infor/relevantcostingarticles.htm.

Prepared by: Evaluated by: Approved by: Noted by:

SIEGFRIED M. ERORITA, CPA, Ph.D . JASMIN MAY P. BANIAGA, CPA, MBA CRISTINA G. GALLATO,CPA, Ed.DCLEOFAS M. BASAEN, Ed. D
Instructor Department Head Dean Vice President for Academic Affairs

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