Chapter III

METHODOLOGY

This part of the research presents the methodology and procedures used in the

completion of the study. This consists of the research design, research locale,

population and sampling, respondents of the study, data gathering instrument, data

gathering procedure, statistical analysis.

Research Design

The researchers of this study have used the descriptive design for this paper.

This is because they aim to provide a concise and accurate description and discussion

on the different methods of depreciation on property plant and equipment used by

different manufacturing companies. In here, the researchers will implement

questionnaires to act as the research instrument.

According to Childcare Research Center (2022), a sort of research called

descriptive research is used to outline a population's characteristics. It gathers

information that is used to respond to a variety of what, when, and how inquiries

regarding a certain population or group. Questions about the causes of a phenomenon

or why it happens are not addressed by descriptive research. Randomized and quasi-

experimental studies are the best ways to find the answers to these types of issues.

However, information from descriptive studies can be utilized to look at how different
variables are correlated with one another. The results of correlational analyses might

help separate variables that could be crucial in understanding a phenomenon from

those that are not, even while they do not provide proof of causality. Descriptive

research is therefore frequently used to develop hypotheses that should be tested using

more rigorous design. Hence, descriptive research will be beneficial in providing

description of the variables of this study. This type of research implements

questionnaire as a form of collecting the data, and will be used in this study to gather

information on the chosen manufacturing companies in Candelaria, Sariaya, and

Lucena in Quezon City.

Research Locale

The researchers chose the manufacturing companies in the three municipalities

of Quezon City: Candelaria, Sariaya, and Lucena as these places consists of several

manufacturing businesses. On the other hand, the researchers also have sought

respondents from the municipalities of Tiaong, San Antonio, and Dolores Quezon,

however the said manufacturing companies were not willing to participate in the study.

The study will give focus on the determination of the different methods of depreciation

on property plant and equipment used by the different manufacturing companies in

Quezon City and its impact on tax planning.

Population and Sampling Technique

The total population of this study is 60 respondents from the three participant

municipalities in Quezon City: Candelaria, Sariaya, and Lucena. The respondents have

been politely asked and have willingly decided to participate and be included in this
research considering also their time availability to comply and accommodate the

inquiries of the researchers. This study will implement the non-probability sampling

technique particularly the quota sampling method.

A subjective (i.e., non-random) way of selecting units from a population is known as

non-probability sampling. Non-probability sampling is a quick, simple, and affordable

method of collecting data because it doesn't call for a whole survey frame. However, it

must be assumed that the sample is representative of the population in order to infer

anything about the population from it. Quota sampling is a non-probability sampling

technique where researchers compile a sample of people who accurately reflect a

population. These people are chosen by researchers based on particular characteristics

or attributes. They make decisions and set quotas to ensure that the market research

samples are effective at gathering data. The entire population can be based on these

sampling. The ultimate subset will only be chosen based on the interviewer's or

researcher's understanding of the population.

Respondents of the Study

Due to the restrictions of the safety and health protocols to control the pandemic,

the researchers have only gathered respondents from six of the municipalities of

Quezon Province: Candelaria, Sariaya, Lucena, Tiaong, San Antonio, and Dolores.

However, only three municipalities have decided to participate in the study: Candelaria,

Sariaya, and Lucena. From the data in selecting the respondents, the researchers have

gathered 30 respondents from the manufacturing companies in Candelaria, 20

respondents from the manufacturing company in Sariaya, and 20 respondents from the

manufacturing companies in Lucena. The sampling technique have been considered in

choosing the respondents wherein non-probability sampling was applied because all the

not all members of the population was given the same opportunity to be chosen, but

those only involved with manufacturing companies and industry. While the quota

sampling was applied in order to reach the quota number of respondents of the

researchers which is 60.

Data Gathering Instrument

Tests, questionnaires, inventories, interview schedules or guides, rating scales, survey

plans, or any other forms that are used to gather data on essentially identical items from

ten or more respondents are considered "data-collection instruments." The primary tool

used in survey research for data collection is the questionnaire. Essentially, it is a

collection of standardized questions, also referred to as items, that adhere to a

predetermined format in order to gather individual data regarding one or more particular

themes. This type of instrument is what this research would be using to gather data.

The instrument will be containing the business profile of the companies as well as the

key indicators of the study. The independent variable which is the estimated useful life

of the property plant and equipment. Also, the dependent variable which is the different

methods of depreciation of property plant and equipment will be measured. The

instrument before being administered by the researchers will be evaluated and validated

by the research personnel and also will undergo reliability and quality tests. The

researchers adapted the Cronbach’s alpha method to test the questionnaires

acceptability.

Data Gathering Procedure

 The conduct of this study will be possible following the appropriate data

gathering procedure. First and foremost, study permit will be asked from the head and

the management of the manufacturing companies. The approved permission letter will

then be presented to the respondents of the study. When accepted cordially, the

researcher will introduce the objectives and the purpose of the study. Afterwards, the

questionnaires will be administered with enough time allocation for the respondents to

answer comfortably. Part I will be introduced first which covers the socio - demographic

profile of the respondents followed by Part II which is a checklist rating scale of

statements on the areas of concern all about the indicators that represents the different

depreciation methods on property plant and equipment on the manufacturing

companies. Once over, the answered questionnaires will be retrieved. Data coding,

tabulation, analysis and interpretation will follow.

Statistical Analysis

This section will discuss how the researchers will analyze the statistical data

gathered from the respondents, focusing on the different methods of depreciation in

property plant and equipment of manufacturing companies in the three municipalities in

Quezon City.

Mean and percentage will be used in presenting and analyzing the data. The

weighted mean is a form of mean that is computed by averaging all the products after

multiplying the weight (or probability) connected to a specific event or result by its
connected quantitative outcome. The main characteristic that separates the weighted

mean from the arithmetic mean is that it is highly helpful when calculating a

theoretically expected outcome where each outcome has a distinct probability of

occurring. In simple terms, the formula can be written as:

Weighted mean = Σwx/Σw

 Σ = summation 

 w = the weights.

 x = the value.

The research will also use the Likert Scale measurement for the interpretation of the

means and variables: estimated useful time of the property plant and equipment and

different methods of depreciation of property plant and equipment. A likert scale

(usually) offers five options for responses to a statement or question, allowing

respondents to express their level of agreement or disapproval with the statement or

question on a positive-to-negative scale.

The table below presents the likert scale guide that will be followed in this study:

Continuum Description Unit Weight

3.26-4.00 Fully Aware 4

2.51-3.25 Aware 3

1.76- 2.50 Slightly Aware 2

0.75- 1.75 Not aware 1

Also, T-test analysis will be implemented in this study in terms of the variables: legal

provisions, financial reporting, managerial decision, inflation, technology, and capital

maintenance. A statistical test called a t-test is employed to compare the means of two

groups. It is frequently employed in hypothesis testing to establish whether a procedure

or treatment truly affects the population of interest or whether two groups differ from one

another (Lustre, 2020).