COST MANAGEMENT FOR PRODUCT LIFE CYCLE: LIFE-CYCLE COSTING AND LONG-TERM

PRICING; TARGET COSTING AND THEORY OF CONSTRAINTS

Time Duration and Allotment: Week 4; 3 hours

Abstract:

This focuses on the cost management for product life cycle, such as: Life-Cycle Costing, Long-Term Pricing,
Target Costing and Theory of Constraints.

Lesson Objectives:

As a result of completing this learning module, students will be able to:

1. Describe the concepts of the cost life cycle and sales life concept

2. Explain and apply the methods in analyzing strategic cost management issues of the cost-
life cycle such as

• Life-cycle costing
• Target costing
• Theory of constraints

3.Distinguish between upstream costs, manufacturing and downstream costs of a product's life
cycle

4. Realize the importance of decision making at the design stage of a product

5. Describe the characteristics of the common design models

6. Explain the strategic cost management over the product's sales life cycle

7. Describe Target Costing and how it is applied in the cost-life cycle

8. Know the techniques in reducing costs to a target cost level

9. Explain the steps in implementing a target cost approach

10. Describe the concept of theory of constraints and how it is applied to improve the speed in
improving speed in the manufacturing process

Module Guide: Study topic content presented below. (TOPIC CONTENT)

Study topic content presented below. (TOPIC CONTENT)

Study topic content presented below. (TOPIC CONTENT)

TOPIC CONTENT: COST MANAGEMENT FOR PRODUCT LIFE CYCLE: LIFE-CYCLE COSTING AND
LONG-TERMPRICING; TARGET COSTING AND THEORY OF CONSTRAINTS

COST MANAGEMENT FOR PRODUCT LIFE CYCLE

Life Cycle Costing

This chapter focuses on the time dimension of cost management. Consideration is given both to (1) the
effect of the timeliness of operations on total costs and (2) the way in which costs change over the life cycle
of the product. Product life cycle is consideration in each of two aspects

a) The cost life cycle

b) The sales life cycle

Cost life cycle is the sequence of activities within the firm that begins with research and development,
followed by design, manufacturing, marketing/ distribution and customer service.
Sales life cycle is the sequence of phases in the product's or service's life in the market from the
introduction of the product or service to growth in sales and finally maturity, decline and withdrawal from
the market.

Important strategic cost management issues arise in each activity of the cost life cycle. The methods helpful
in analyzing the cost life cycle are

A. Life-Cycle Costing
B. Target Costing and
C. Theory of Constraints

Life-Cycle Costing is used throughout the cost life cycle to minimize overall cost.
Target Costing is used for managing costs primarily in the design activity.
Theory of Constraints is a method for managing manufacturing costs.

Two of the methods, target costing and the theory of constraints are particularly applicable to manufacturing
firms because they deal primarily with product design and manufacture. However, each method also can
be applied to service firm, to improve the efficiency and speed of the processes involved in providing the
service.

A. COST MANAGEMENT FOR THE PRODUCT LIFE-CYCLE

Life-Cycle Costing is a management technique used to identify and monitor the Costs of product or service
throughout its life cycle. It provides a long-term perspective of product costs and product or service
profitability. For instance, a product that is designed quickly and carelessly, with little investment in design
costs, may have significantly higher marketing and service costs later in the life cycle. Managers are
interested in the total cost, over the entire life cycle, and not manufacturing costs only.

Total cost over the product's life cycle often is broken down into three components
upstream costs, manufacturing cost and downstream costs.

The sub-components of these costs follow:

Upstream costs
Research and development
Design: prototyping, testing. concurrent engineering and quality development

Industries with high upstream costs include computer software, specialized industrial and medical
equipment

Manufacturing costs
Purchasing
Direct manufacturing costs
Indirect manufacturing costs

Downstream costs
Marketing and distribution - packaging, shipping, samples, promotion, advertising
Service and warranty - recalls, service, product liability, customer support

Industries with high downstream costs include pharmacratic, performer, cosmetics and toiletries
Why Design is Important

Decision making at the design stage is critical. Although the costs incurred at the design stage may be very
small in relation to the total costs over the entire life cycle the decision stage decisions are important
because they lock in most of the remaining life-cycle costs.

The critical success factors at the design stage include:

1. Reduced time-to-market.
2. Reduced expected service costs.
3. Improved ease-of-manufacture
4. Process planning and design.

➢ Reduced time-to-market

The speed of product development and the speed of delivery and efforts to reduce time-to-market are
critical for a business firm to sustain its competitiveness.

➢ Reduced expected service costs

By careful simple design and the use of interchangeable or modular components can reduce expected
service costs.

➢ Improved ease-of-manufacture

The design must be easy to manufacture in order to reduce production costs and speed production.

➢ Process planning and design

The plan for the manufacturing process should be flexible, allowing for fast setups and product
changeovers, using computer-integrated manufacturing computer assisted design and concurrent
engineering.

Common Design Models

The four common design methods are

a. Basic engineering
b. Prototyping
c. Templating and
d. Concurrent engineering

Basic engineering

This is a method in which product designers work independently from marketing and manufacturing to
develop a design from specific plans and specifications.

Prototyping

This is a method in which functional models of the product are developed and tested by engineers and trial
customers.

Templating

This is a design method in which an existing product is scaled up or down to fit the specifications or the
desired new product.

Concurrent engineering

Concurrent engineering or simultaneous engineering, is an important new approach in which product design
is integrated with manufacturing and marketing throughout the product's life cycle.
Characteristics of the Four Design Methods

Illustrative case of Life-Cycle Costing and Pricing

Star Communications Technologies, Inc., has introduced a new phone so small that It can be carried in a
wallet. Star invested P400,000 in research and development for the technology, and another P800,000 to
design and test the prototypes. Star predicts a four-year life cycle for this model and gathered this cost data
for the wallet phone:

If the price of a wallet phone is P225, Star will have to increase the research and development costs by
PI00,000 and the prototyping costs by Pa00,000 to improve the model for the higher price. Fixed customer
service costs also would increase by P500 per month and variable distribution costs would increase by P5
per unit to improve the customer service and distribution at the P225 level. At the lowest price level of P150,
fixed marketing costs would be reduced by P5,000 per month because the low price would be the principal
selling feature.

Required:

1. Determine the lite-cycle costs for each pricing decision.

2. What price will produce the most profit for Star for the wallet phone's life Cycle?

Solution to Illustrative Case: Life-Cycle Costing and Pricing

Requirement 1: Life-Cycle costs for each decision

Requirement 2

The P150.00 price renders the highest expected profit.

COST MANAGEMENT OVER THE SALES LIFE CYCLE

The sales life cycle is the sequence of phases in the product's or service' s lite in the market from the
introduction of the product or service to growth in sales and finally, maturity, decline and withdrawal from
the market. Sales are at first small, then peak in the maturity phase and decline thereafter.

The Sales Life Cycle of a Product

Phases of The Sales Life Cycle

Phase 1: Product Introduction

In the first phase there is little competition, and sales rise slowly as customers become aware of the new
product or service. Costs are relatively high because of high R&D expenditures and capital costs for setting
up production facilities and marketing efforts. Process are relatively high because of product differentiation
and the high costs at this phase. Product variety is limited.

Phase 2: Growth

Sales begin to grow rapidly and product variety increases. The product continues to enjoy the benefits of
differentiation. There is increasing competition and prices begin to soften.
Phase 3: Maturity

Sales continue to increase but at a decreasing rate. there is a reduction in the number of competitors and
of product variety. Prices soften further, and differentiation is no longer important. Competition 1s based on
cost, given competitive quality and functionality.

Phase 4: Decline

Sales begin to decline, as do the number of competitors. Prices stabilize. Emphasis on differentiation
returns. Survivors are able to differentiate their product, control costs, and deliver quality and excellent
service. Control of costs and an effective distribution network are key to continued survival.

Management Focus

In the first phase, the focus of management is on design, differentiation, and marketing The focus shifts to
new product development and pricing strategy as competition develops in the second phase. In the third
and fourth phases management's attention turns to cost control, quality and service as the market continues
to become more competitive. Thus, the firm’s strategy for the product or service changes over the sales life
cycle, from differentiation in the early phases to cost leadership in the final phases.

Strategic Pricing Strategy

The strategic pricing approach changes over the life cycle of the product or service. In the first phase,
pricing is set relatively high to recover development costs and to take advantage of product differentiation
and the new demand for the product. In the second phase, pricing is likely to stay relatively high as the firm
attempts to build profitability in the growing market. Alternatively, to maintain or increase market share at
this time, relatively low prices (penetration pricing) might be used. In the latter phases, pricing becomes
more competitive, and target costing and e cycle costing methods are used, as the firm becomes more of
a price taker rather than a price setter and makes efforts to reduce upstream (for product enhancement)
and downstream costs.

Cost Management System

Together with the change in strategy and pricing, there is a change in the cost management system. At the
introduction and into the growth phases, the primary need is for value chain analysis, to guide the design
of products in a cost-efficient manner. Master budgets also are used in these early phases to manage cash
flows; there are large developmental costs at a time when sales revenues are still relatively small. As the
strategy shifts to cost leadership in the latter phases, the goal of the cost management system is to provide
the detailed budgets and activity-based costing tools for accurate cost information.

Illustrative Case: Sales Life-Cycle Analysis

The management accountant at the Aeron Manufacturing Company has collected these data in preparation
for a sales life-cycle analysis on one of its products, a leaf blower:

Required: Determine what stage of the sales life cycle the leaf blower is in.

Solution to Illustrative Case: Sales Life-Cycle Analysis

It seems that sales are stabilizing since they only grew 1.5% over the past year and the average annual
growth Over the past four years was 19.6%. The unit sales price has also slowed, and the unit profit is
beginning decline. As a result, total profit is starting to level off. Because of these signs, it seems that the
leaf blower is in the early maturity stage.
Illustrative Case: Strategic Costing and Pricing

Optic Care Inc. (OCI) manufactures specialized equipment for polishing optical lenses. There are two
models- one principally used for fine eyewear (L-25) and another for lenses used in binoculars, cameras
and similar equipment (BL-10).

The manufacturing cost of each unit is calculated by activity-based costing, using these manufacturing cost
pools:

OCI currently sells the BL-10 model for P1,050 and the L-25 model for P725. Manufacturing costs and
activity usage for the two products are:

Required:

1. Calculate the product cost and product margin for each product.

2. A new competitor has entered the market for lens polishing equipment with a superior product at
significantly lower prices-P750 for the BL-10 model and P550 for the L-25 model. To try to compete, OCI
has made some radical improvements in the design and manufacturing of its two products. While the
costing rates have stayed the same, the materials costs and activity usage rates have been decreased
significantly:

Calculate the total product cost with the new activity usage data.

Can OCI make a profit with the new costs, assuming that OCI must meet the price set by the new
competitor?

3.What cost management method might be useful to OCI at this time and why?

Solution to illustrative Case: Strategic Costing

 Requirements I and 2

Profit will still be earned even of prices are reduced a shown in the above schedule.

Requirement 3

Target costing should be useful to OCI to assist the firm in meeting the new competition by finding new
ways to cut costs without reducing product quality or functionality.

B. TARGET COSTING

Target costing is a technique in which the firm determines the desired cost for the product or service, given
a competitive market price so the firm can earn a desired profit.

Target Cost = Competitive Price- Desired Profit

Target costing is a very useful way to manage the needed trade-off between increased functionality and
higher cost.

Target Costing in the Cost Life Cycle

With its positioning in the early, upstream phases of the cost life cycle, Target Costing can clearly help a
firm reduce total costs.
How to Reduce Costs to a Target Cost Level?

1. Integrate new manufacturing technology using advanced cost management techniques such as activity-
based costing and seeking higher productivity through improved organization and labor relations.

2. Redesign the product or service. This approach is more common than the first one because it recognizes
that design decisions account for mush or the product life cycle costs.

Many firms employ both methods-operational control to achieve productivity gains and target costing to
determine low-cost design.

Steps in Implementing a Target Cost Approach

1. Determine the market price.

2. Determine the desired profit.
3. Calculate the target cost at market price less desired profit.
4. Use value engineering to identify ways to reduce product cost.
5. Use kaizen costing and operational control to further reduce costs.

The first three steps do not require additional explanation.

The following sections explain the fourth and the fifth steps:

a. The role of value engineering

b. Kaizen costing and operational control

a. Role of Value Engineering

Value engineering is used in target costing to reduce product cost by analyzing the trade-offs between (1)
different types and levels of products functionality and (2) total product cost. An important first step of
engineering is a consumer analysis performed during the design stage or the new or revised product. The
consumer analysis identifies critical consumer preferences that define the desired functionality for the new
product.

The type of value engineering used depends on the functionality of the product. For one group of products
including camera, video equipment, functionality can be added or deleted relatively easily. These are
products that have frequent new models or updates and customer preferences change frequently. On the
other hand, for another group of products such as construction equipment and heavy trucks, the
functionality of the product must be designed into the product rather than added on. In contract to the first
group customer preferences here are rather stable.

Target costing is more useful for products in the first group because there are a large number of features
about which the firm has some discretion.

A common type of value engineering employed in these firms is functional analysis in which the
performance and cost of each major function or feature of the product is examined.

An overall desired level of achievement of performance for each function is obtained while keeping the cost
of all functions below the target cost.

Another technique is benchmarking which is used to determine which features give the firm a competitive
advantage. Its objective is to come up with an overall bundle of features for the product that achieve the
desired balance of meeting consumer preferences while Keeping the costs below targeted level.

Design Analysis is the common form of value engineering for products in group two, Industrial and
specialized products. The design team prepare several possible designs or the product, each having similar
features that have different levels of performance and different levels of performance and different costs.
The design team works with cost management personnel to select the one design that best meets customer
preferences while not exceeding the target cost.

Other cost reduction approaches include cost tables and group technology.
Cost tables are computer-based databases that include comprehensive information about the firm's
drivers. Cost drivers include, for example, the size of the product, the materials used in its manufacture,
and the number of features. Firms that manufacture different sized parts from the same design (pipe fittings,
tools and so on) use cost tables to show the difference in cost for parts of different sizes and different types
of materials.

Group technology is a method of identifying similarities in the parts of products a firm manufactures, so
the same parts can be used in two or more products, thereby reducing costs. Large manufacturers of
diverse product lines, such as in the automobile, Industry, use group technology in this way. A point of
concern in the use of group technology is that, while manufacturing costs are reduced, service and warranty
costs might be increased if a failed part is spread over many different models, with the result that a product
recall will affect many more customers.

b. Target Costing and Kaizen Costing

The fifth step in target costing is to use kaizen costing and operational control to further reduce costs.
Kaizen costing occurs at the manufacturing stage, so that the effects of value engineering and improved
design are already in place; the role for cost reduction at this phase is to develop new manufacturing
methods (such as flexible manufacturing systems) and to use new management techniques such as
operational control, total quality management and the theory of constraints to further reduce costs. Kaizen
means "continual improvement," that is, the ongoing search for new ways to reduce costs in the
manufacturing process of a product with a given design and functionality.

Illustrative Case: Target Costing

MotoDrive manufactures a wide variety of parts for recreational boating, including part a and part b
component for high-powered outboard boat engines. The component is purchased by original equipment
manufacturers such as Mercury and Honda, for use in large, more powerful outboards. The units sell for
P510, and sales volume averages 25,000 units per year.

Recently, MotoDrive's major competitor reduced the price of its equivalent part to P450. The market is very
competitive, and MotoDrive realizes it must meet the new price or lose significant market share. The
controller has assembled these cost and usage data for the most recent year tor MotoDrive's production of
25,000 units:

Required:

1.Calculate the target cost for maintaining current market share and profitability.

2. Can the target cost be achieved? How?

Solution to Illustrative Case: Target Costing

Requirement 1

Requirement 2

The target cost can probably be achieved by efforts in two areas

a. The standard cost analysis shows an unfavorable materials variance of P375,000 P5,500,000-
P5,125,000) or P15 per unit, a very Significant variance. Efforts to reduce or eliminate this variance will
make the firm much more competitive. Notice that the labor usage variances, both for direct and indirect
labor, are favorable, so it appears no additional work is needed here, assuming the standards are properly
set.

b. The manufacturing costs except for direct materials and direct labor can be considered non-value adding
costs, since they do not add to the functionality or quality of the product. Efforts can be made to reduce the
total cost of these manufacturing costs, which now total a significant P3,999,000 or P159.96 per unit.

C. THEORY OF CONTRAINTS

Most strategic initiatives undertaken by firm today focus on improving the speed of their operations
throughout the cost life cycle. For many companies speed is a competitive edge. Shorter sales lite cycle in
many industries mean that manufacturers are working to reduce product development time.

Theory of constraints is a process of identifying and managing constraint in the making of products or in
the providing of services. It also describes methods to maximize operating income when faced with some
bottleneck and some nonbottleneck operations.

This section presents one of the methods to improve speed, Theory of Constraints (TOC) a technique used
to improve speed in the manufacturing process and thus speed.

In contrast to target costing, which focuses on the early phases of the cost life cycle, the Theory of
Constraints focuses on manufacturing activity. This theory focuses the manager's attention on the
constraints, or bottlenecks that slow the production process. TOC emphasis the improvement or throughput
(overall, all rate of manufacturing output) by removing or reducing the bottlenecks in the production process
that slow the rate or output.

Manufacturing and distribution processes that do not affect throughout are nonbinding constraints that
receive less attention that bottlenecks or binding constraints. Fast throughput enables firms to be better
prepared for quick product changeovers and changes in customer preferences.

The Theory of Constraints defines three measurements

1. Throughput Contribution:

Revenues Direct Materials

Cost of Goods Sold
2. Investments:

Sum of materials costs in direct materials, work-in-process, and finished goods inventories, R&D costs, and
costs of equipment and buildings.

3. Operating Costs:

All costs of operations (other than direct materials) incurred to earn throughput contribution. Operating costs
include salaries and wages, rent, utilities and depreciation.

Steps in Theory of Constraints Analysis

Step 1: Identify the Binding Constraint(s)

In the first step in the management accounts works with manufacturing managers and engineers to identify
binding constraints by developing a network diagram of the flow of production. A network diagram is a
flowchart of the work done that shows the sequence of processes and the amount of the time required for
each. The purpose of the network diagram is to help the management accountant look for signs of a,
bottleneck. A bottleneck often is indicated by a process with relatively large amounts of inventory
accumulating, or where there are long lead times. Task analysis, which describes the activity of each
process in detail, also could be used to identify binding constraints.

Step 2: Determine the Most Efficient Utilization for Each Binding Constraint

In this step, the management accountant determines how to most effectively utilize the firm's resources.
The approach differs somewhat depending on whether there is one product, or two or more (as SPI has).
If there is one product, the management accountant looks for ways to maximize the flow of production
through the constraint.

Step 3: Manage the Flows Through the Binding Constraint

In step 3, the objective is to manage the flow of production in and out of the binding constraint to smooth
the flow of production throughout the plant. The orderly scheduling of production prevents the building of
materials or work-in-process inventory at various processes. An important tool for managing product flow
in this context is the drum-buffer-rope (DBR) system, which is a system for balancing the flow of production
through a binding constraint.

Step 4: Add Capacity to the Constraint

As a longer-term measure to relieve the constraint and improve cycle time, management should consider
adding capacity to the constraints by adding new or improved machines and/or additional labor.

Step 5: Redesign the Manufacturing Process for Flexibility and Fast Cycle Time

The most complete strategic response to the constraint is to redesign the manufacturing process, including
the introduction of new manufacturing technology, deletion of some hard-to-manufacture products, and
redesign of some products tor greater ease of manufacturing. Simply removing one or more minor features
on a given product might speed up the production process significantly. The use of value engineering as
described earlier might help at this point.

The problems requiring the application of "Theory of Constraints" may also be resolved using Linear
Programming technique.

Illustrative Problem: Theory of Constraints, Throughput Contribution,

Quality, Relevant Costs

Basic data on Columbia Industries follow:

Columbia Industries manufactures electronic testing equipment. Columbia also installs the equipment at
customer's sites and ensures that it functions smoothly. Additional information on the Manufacturing and
installation departments is as follows (capacities are expressed in terms of the number of units of electronic
testing equipment):
Columbia manufactures only 300 units per year because the Installation Department has only enough
capacity to install 300 units. The equipment sells for P40,000 per unit (installed) and has direct materials
costs of P15,000. All costs other than direct materials costs are fixed.

Case I

Columbia's engineers have found a way to reduce equipment manufacturing time. The new method would
cost an additional P50 per unit and would allow Columbia to manufacture 20 additional units a year. Should
Columbia implement the new method?

Answer

It will cost Columbia P50 per unit to reduce manufacturing time. But manufacturing is not a bottleneck
operation; installation is. Therefore, manufacturing more equipment will not increase sales and throughput
contribution. Columbia Industries should not implement the new manufacturing method.

Case II

Columbia’s designers have proposed a change in direct materials that would increase direct materials costs
by P2,000 per unit. This change would enable Columbia to install 320 units of equipment each year. If
Columbia makes the change, it will implement the new design on all equipment sold. Should Columbia use
the new design?

Answer:

Additional relevant costs of new direct materials,

P2,000 X 320 units P640,000

Increase in throughput contribution, P25,000 x 20 units P500,000

The additional incremental costs exceed the benefits from higher throughput contribution by P140,000, so
Columbia Industries should not implement the new design.

Alternatively, compare throughput contribution under each alternative.

Current throughput contribution is P25,000 x 300 P7,500,000

With the modification, throughput contribution is

P23,000 x 320 P7,360,000

The current throughput contribution is greater than the throughput contribution resulting from the proposed
change in direct materials. Hence, Columbia Industries should not implement the new design.

Case III

A new installation technique has been developed that will enable Columbia's engineers to install 10
additional units of equipment a year. The new method will increase installation costs by P50,000 each year.
Should Columbia implement the new technique?

Answer:

Increase in throughput contribution, P25,000 x 10 units P250,000

Increase in relevant costs P 50,000

The additional throughput contribution exceeds incremental costs by P200,000, so Columbia Industries
should implement the new installation technique.
 vCase IV

Columbia is considering how to motivate workers to improve their productivity (output per hour). One
proposal is to evaluate and compensate workers in the Manufacturing and Installation departments on the
basis of their productivities. Is the new proposal a good idea?

Answer:

Motivating installation workers to increase productivity is worthwhile because installation is a bottleneck

operation, and any increase in productivity at the bottleneck will increase throughput contribution. On the
other hand, motivating workers in the manufacturing department to increase productivity is not worthwhile.
Manufacturing is not a bottleneck operation, so any increase in output will result only in extra inventory of
equipment. Columbia Industries should encourage manufacturing to produce only as much equipment as
the installation department needs, not to produce as much as it can. Under these circumstances, it would
not be a good idea to evaluate and compensate manufacturing workers on the basis of their productivity.

Illustrative Case: Theory of Constraints

Kable Inc. manufactures a part, XX3, used in automobiles. Three processes are
involved in the production of XX3: drilling, inserting and packaging. Each process
performed at a separate workstation and has these performance characteristics:

• The drilling function can drill 30,000 parts per hour.

• The inserting function can insert 3,000 parts per 5 minutes.
• The packaging function can package 10,000 parts per half hour.

Required: How many units of XX3 can be manufactured in a week, and which process is the binding
constraint?

Solution to illustrative Case: Theory of Constraints

The packaging function is the constraint because only 20,000 parts can be packaged an hour whereas
30,000 can be drilled and 36,000 can be inserted.

Assuming a 40-hour work week, the number manufactured/ week

20,000x 40hours = 800,000 /week

Activities, Resources, and Assessment

Online
(Hybrid Model)
Resources:
Schoology App/Messenger
Strategic Cost Management
Textbook: (2019-2020 edition) by; Ma.
Elenita Balatbat Cabrera
Activities:
Topic discussion will be through GoogleMeet
App. Students will be grouped accordingly.
Each group will be tasked to prepare PPT
file relative to the TOPIC CONTENT, which
will be presented and graded during the
teleconferencing.
Blended Offline
(Asynchronous Model) (Flex Model)
Resources: Resources:
Schoology App/Messenger
Strategic Cost Management (2019- Strategic Cost Management
Textbook: 2020 edition) by; Ma. Elenita Textbook: (2019-2020 edition) by; Ma.
Balatbat Cabrera Elenita Balatbat Cabrera
Activities: Activities:
Topic discussion will be through GoogleMeet Topic discussion will be during classroom
App. Students will be grouped accordingly. meetups. Students will be grouped
Each group will be tasked to prepare PPT file accordingly. Each group will be tasked to
relative to the TOPIC CONTENT, which will be prepare PPT file relative to the TOPIC
sent via e-mail address. This output will be CONTENT, which will be presented and
graded accordingly. graded during the class session.

Assessment: Assessment: Assessment:

Topic quiz will be publish at Schoology App.
Instructions as to the time allocated for
answering and deadline for submission of
quiz will be announced via Messenger Group
Chat.
Topic quiz will be publish at Schoology App.
Instructions as to the time allocated for
answering and deadline for submission of quiz
will be announced via Messenger Group Chat.
Topic quiz will be issued to you and will be
answered at home, which will be
immediately due for submission the following
day at the box placed at the SVCI guard
house. Communication as to the receipt the
said quiz will be through text messaging.
Midterm Major Examination
Time Duration and Allotment: 1 day

Activities, Resources, and Assessment

Online Blended Offline
(Hybrid Model) (Asynchronous Model) (Flex Model)
Resources: Resources:
Schoology App/Messenger Schoology App/Messenger
Assessment: Assessment: Assessment:
Midterm Major Examination will be publish at Midterm Major Examination will be publish at Midterm Major Examination will be issued to
Schoology App. Instructions as to the time Schoology App. Instructions as to the time you and will be answered at home, which will
allocated for answering and deadline for allocated for answering and deadline for be immediately due for submission the
submission of assessment will be submission of assessment will be announced following day at the box placed at the SVCI
announced via Messenger Group Chat. via Messenger Group Chat. guard house. Communication as to the
receipt the said quiz will be through text
messaging.