Managerial

Accounting
Carlo Ian A. Manalansan, MSBA
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

Overview

I. COURSE TITLE: Managerial Accounting

II. COURSE OVERVIEW:

This course introduces the student to the essential elements of management accounting,
brings them through the planning and control techniques of budgeting, shows them how
to allocate costs to products or services, and introduces them to analytical techniques.

The major course objectives are:

1. Understand the role of managerial accounting in an organization in contrast to
financial accounting.
2. Incorporate commitment to ethical values while using knowledge and skills to
influence decisions that create value for organizational stakeholders.
3. Understand the financial and operational sides of the business.
4. Report and analyze financial as well as nonfinancial measures of process
performance and corporate social performance.

To assist you along this line, ten modules have been developed to support deeper
understanding along identified topics important for you as a business management
student. The modules are as follows:
 Module 1. Managerial Accounting: An Overview
 Module 2. Managerial Accounting and Cost Concepts
 Module 3. Job-Order Costing
 Module 4. Process Costing
 Module 5. Cost-Volume-Profit Relationships
 Module 6. Variable Costing and Segment reporting
 Module 7. Activity-Based Costing
 Module 8. Differential Analysis

REQUIRED TEXT
Garrison, R. H., Noreen, E., & Peter C. Brewer, P. (2019). Managerial accounting.
McGraw-Hill Education.

 The text book serves as a key reference, providing terminology, theories,

techniques and applications, which are commonly used in managerial accounting.
Knowledge of these concepts is essential to successful completion of this course.

III. COURSE STUDY GUIDE:

This module was prepared for you, to work on your own. To have the best in
working with this module, you are reminded to follow these simple yet effective
guidelines:

1. Manage your time well. A course study schedule is prepared for you to
help you study the modules in this course. The productive use of your
time and energy will help you a lot in finishing the scheduled activities.
2. Focus your attention. The key element for better understanding is
having the focus on the things to be done.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

Overview
3. Give your best. Always remember that success will be attained in
everything you do by giving extra effort in the things you are doing. Giving
your best also means observing Honesty in doing the assigned tasks you
are asked to do in this module. Never let someone do the task for you or
copy the work of your classmates.
4. Submit on time. Work diligently. Do not procrastinate. Remember time is
gold. Work immediately on the task at hand in order for you to follow
scheduled time for submission.
5. Be patient, Motivate yourself. Patience equates success. Always think
of the bright future ahead. And to get there, start moving now.
6. Answer confidently. Study hard, surf the internet, read and read and
read more. The more you know, the more confident you become.
7. Work independently. You can do it! Your future lies in your own hands
and your own decisions. So, practice working independently, trust
yourself, be independent.
8. Contact me. If you have any questions, don’t hesitate to ask me through
my email: manalansancarlo@ispsc.edu.ph or the group chat created for this
class.

IV. COURSE STUDY SCHEDULE:

To keep you on track for the best use of the modules in Managerial
Accounting, the study schedule is hereby presented for you to follow:

Week Topic Learning Special Instructions

Activities
Week Module 1. Read Information Research more information or
1-3 Managerial on the identified details regarding the topics. Take
Accounting: An topics in module 1 note of the important points and
Overview and in the jot down notes.
textbook
provided.
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.
Week Module 2. Read Information Research more information or
4-5 Managerial on the identified details regarding the topics. Take
Accounting and topics in module 2 note of the important points and
Cost Concepts and in the jot down notes.
textbook
provided.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

Overview
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.
Week Module 3. Job- Read Information Research more information or
5-7 Order Costing on the identified details regarding the topics. Take
topics in module 3 note of the important points and
and in the jot down notes.
textbook
provided.
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.
Week Module 4. Process Read Information Research more information or
7-8 Costing on the identified details regarding the topics. Take
topics in module 4 note of the important points and
and in the jot down notes.
textbook
provided.
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.
Week Module 5. Cost- Read Information Research more information or
8-9 Volume-Profit on the identified details regarding the topics. Take
Relationships topics in module 5 note of the important points and

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

Overview
and in the jot down notes.
textbook
provided.
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.
Week Module 6. Variable Read Information Research more information or
9-11 Costing and on the identified details regarding the topics. Take
Segment topics in module 6 note of the important points and
Reporting: Tools and in the jot down notes.
for Management textbook
provided.
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.
Week Module 7. Activity- Read Information Research more information or
11-13 Based Costing on the identified details regarding the topics. Take
topics in module 7 note of the important points and
and in the jot down notes.
textbook
provided.
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

Overview
Week Module 8. Read Information Research more information or
13-15 Differential on the identified details regarding the topics. Take
Analysis topics in module 8 note of the important points and
and in the jot down notes.
textbook
provided.
Answer/Perform Work on the intended learning
the Intended activity / in-text questions and
Learning Activity submit to your instructor. Place
answers in an encoded word
document.
Answer Activity / Answer the activity /
Assessment Task assessment task provided.
Understand the lesson and
achieve a passing mark on the
given requirement. Place answers
in an encoded word document.

V. COURSE EVALUATION:

To pass the course, you must:

1. Submit all course requirements to include the following:
a. Activity outputs / Assessments
b. Course Requirement(s)

2. Pass all examinations:

a. Midterm examination
b. Final examination

VI. HOW TO USE THIS MODULE:

Kindly refer to the FLOWCHART given in the next page for your guide on how to use the
module.

DO NOT WRITE ANYTHING ON THIS

MODULE. All answers to study guide,
activities, assignments, exercises and
tests should be written on a
SEPARATE SHEET.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

Overview
There are a number of symbols in this module to guide you as you study:

This tells you to take note of or to remember an important point.

This tells you there is an Intended Learning Activity for you to

accomplish.

This tells you there is an assignment or research activity to be

undertaken.

This tells you there is an Assessment or Self-Test.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1
Module 1: Managerial Accounting (An Overview)

“When we take a risk, we are betting on an outcome that will result from a decision we have
made, though we do not know for certain what the outcome will be.”
Peter L. Bernstein
Against the Gods: The Remarkable Story of Risk

LEARNING OBJECTIVES
“Creating value through values” is the credo of today’s management accountant. It
means that management accountants should maintain an unwavering commitment
to ethical values while using their knowledge and skills to influence decisions that
create value for organizational stakeholders. These skills include managing risks and
implementing strategy through planning, budgeting and forecasting, and decision
support. Management accountants are strategic business partners who understand
the financial and operational sides of the business. They report and analyze financial
as well as nonfinancial measures of process performance and corporate social
performance. Think of these responsibilities as relating to profits (financial
statements), processes (customer focus and satisfaction), people (employee
learning and satisfaction), and the planet (environmental stewardship).

Financial and Managerial Accounting: Seven Key Differences

Work of Management

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1

Planning

Controlling

Decision Making

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1
EXAMPLES:
For Marketing Majors

For Human Resource Management Majors

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1

Managerial Accounting: Planning, Controlling, and Decision Making

The primary purpose of this course is to teach measurement skills that managers
use to support planning, controlling, and decision making activities.

Managerial Accounting: Measurement Skills

- Measurement skills help managers answer important questions.
o How should I create a financial plan for next year?
o How well am I performing relative to my plan?

Managerial Accounting: Understanding the Broader Context

This module teaches measurement skills that managers use on the job every
day. Managers need to apply these measurement skills in a broader business
context to enable intelligent planning, control, and decision making. This context
includes topics such as:
1. Big Data
- Big Data refers to large collections of data that are gathered from inside
or outside a company to provide opportunities for ongoing reporting and
analysis.
- The 5 ‘Vs’:
o Variety refers to the data formats in which information is stored.
o Volume refers to the continuously expanding quantity of data that
companies must gather, cleanse, organize.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1
o Velocity speaks to the rate at which data is received and acted on by
organizations.
o Value implies that the time and money organizations expend to analyze
Big Data.
o Veracity refers to the fact that users expect their data to be accurate
and
o trustworthy.
- Data analytics refers to the process of analyzing data with the aid of
specialized systems and software to draw conclusions about the
information they contain
o Managers often communicate the findings from their data analysis to
others through the use of data visualization techniques, such as
graphs, charts, maps, and diagrams.
o Data analytics can be used for descriptive, diagnostic, predictive, and
prescriptive purposes.

2. Ethics
- Why Have Ethical Standards?
- Ethical standards in business are essential for a smooth functioning
economy.
- Without ethical standards in business, the economy, and all of us who
depend on it for jobs, goods, and services, would suffer.
- Abandoning ethical standards in business would lead to a lower quality of
life with less desirable goods and services at higher prices.

3. Strategic Management
- Strategy
o A strategy is a “game plan” that enables a company to attract
customers by distinguishing itself from competitors.
o The focal point of a company’s strategy should be its target
customers.
- Customer Value Propositions:

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1

4. Enterprise Risk Management

- A process used by a company to proactively identify and manage risk. This
includes considering whether to avoid the risk, accept the risk, or reduce the
risk?
- Once a company identifies its risks, perhaps the most common risk
management tactic is to reduce risks by implementing specific controls.

- Types of Internal Controls for Financial Reporting:

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1

5. Corporate Social Responsibility

- CSR extends beyond legal compliance to include voluntary actions that

satisfy stakeholder expectations.
- Examples of Corporate Social Responsibility:

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1

6. Process Management
- A business process is a series of steps that are followed in order to carry out
some task in a business.

- Lean Production - is often called Just-In-Time (JIT) production

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1
- Lean Production: Traditional Manufacturing:

- Lean Production: Benefits

o Because lean thinking only allows production in response to customer
orders, the number of units produced tends to equal the number of
units sold.
o The lean approach also results in fewer defects, less wasted effort,
and quicker customer response times than traditional production
methods.

7. Leadership
- Organizational leaders unite the behavior of employees around two common
themes—pursuing strategic goals and making optimal decisions.
- Factors that influence behavior:
o Intrinsic Motivation
o Extrinsic Incentives
o Cognitive Bias

SUMMARY

Module 1 defined managerial accounting and explained why it is relevant to business

and accounting majors. It also discussed six topics—ethics, strategic management,
enterprise risk management, corporate social responsibility, process management,
and leadership—that define the context for applying the quantitative aspects of
managerial accounting. The most important goal of the module was to help you
understand that managerial accounting matters to your future career regardless of
your major. Accounting is the language of business and you’ll need to speak it to
communicate effectively with and influence fellow managers.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
 ILOCOS SUR
POLYTECHNIC STATE
Tagudin Campus
COLLEGE

MODULE 1

INTENDED LEARNING ACTIVITY

Review Questions
1. Why is managerial accounting relevant to business majors and their future
careers?
2. Provide scenarios on how does managerial accounting differ from financial
accounting. Justify your answer.
3. Why do business professionals need to understand their company’s strategy?
4. As a business major student, as found in this module, why are leadership
skills important to managers?
5. Why is ethical behavior important to business?
6. Why do companies such as SM Malls take a physical count of their inventory
on hand at least once per year?
7. Why do companies prepare budgets? Justify your answer by providing
scenarios and/or actual examples.

ACTIVITY/ASSESSMENT
Application Questions
1. Pick three industries in the Philippine Stock Exchange and describe how the
risks faced by companies within those industries can influence their planning,
controlling, and decision-making activities.
2. Pick any large company in the Philippines and describe its strategy using one
of the three customer value propositions defined in this module.
3. Locate a website of any company in the Philippines that publishes a corporate
social responsibility report (also known as a sustainability report). Describe
three nonfinancial performance measures included in the report. Why do you
think the company publishes this report?
4. Why do companies that implement Lean Production tend to have minimal
inventories? Concretize your answer by providing an example of a company
that uses Lean Production.
5. Assuming that you are an employee of a human resource agency, do you
think it would be appropriate for your boss to establish the sales budget
without any input from you? Why?

Reference(s):

Garrison, R. H., Noreen, E., & Peter C. Brewer, P. (2019). Managerial accounting.
McGraw-Hill Education.

Course Code: ELECT 103

Descriptive Title: Managerial Accounting
Instructor: Carlo Ian A. Manalansan
Ilocos Sur Polytechnic State College