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PRELIM PERIOD

MANAGERIAL ACCOUNTING
Module No. 1

Topic Highlights:

Lesson 1: Managers and Their Activities

Lesson 2: Managerial Accounting and Managers
Lesson 3: The Finance Department
Lesson 4: Organizational Structure
Lesson 5: Emerging Business Concepts
Lesson 6: Certified Management Accountant

I. Learning Objectives:

At the end of this module, the students must be able to:

 describe a manager and appreciate their activities;
 define managerial accounting and contrast it from financial accounting;
 illustrate the composition of the finance department of a typical business entity;
 contrast a line and staff position and its relation to organizational structure and
the value chain;
 describe the different emerging business concepts and how it affects the
responsibilities of management accountants; and
 identify a certified management accountant and justify their adherence to the code
of ethics.

II. Activating Prior Knowledge (APK)

(Note: Read and answer the questions before proceeding to the topic discussions.)

1. What is an enterprise supposed to accomplish?

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2. Why is adherence to ethical standards important for the smooth functioning of an

advanced market economy?
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References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting
Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |2

III. Topic Discussion

LESSON 1: MANAGERS AND THEIR ACTIVITIES

Management is defined as the determination of

set of actions to organize the entity’s resources to Management is expected to
achieve an objective and the people in charge of ensure that the organization uses
determining such set of actions are called its resources wisely, operates
managers. profitably, pays its debts, and
abides by laws and regulations.
1. Determination of set of actions. In order to To fulfill these expectations,
manage an organization, it is very vital to managers establish the goals,
identify the activities that are needed to be objectives, and strategic plans
carried out in order to achieve the objectives of that guide and control the
such organization. In relation to such activities, organization’s operating,
the people that are responsible for its execution investing, and financing
and the participating and affected parties, the activities.
timing, duration, extent, and the resources
needed, should also be recognized.
2. Entity’s resources. Resources are anything that an
entity can use in order to perform its function and
achieve its objectives. Examples of resources
includes assets, human and natural resources,
technology and information among other things
that can provide an organization with tangible
benefits. Managers are required to organize
resources in such a way that it will be properly
utilized and will be available for use in time for the
performance of the chosen actions or activities of
the organization.
3. Objectives. Basic concept states that the main
objective of business is to earn profit. However, in
achieving profit, certain objectives must be met
first like the production of goods, the target market,
expansion of business area, and a lot more. There
are three types of business objectives:
a. Short-term or operational objectives – are
goals that should be achieve within one
operating period which is usually a year. It
includes goals pertaining to selling and
purchasing goods and services.
b. Mid-term or bridge objectives – are goals that
usually connect the different operational
objectives to the ultimate goals of the
organization and can be achieve within 3 to 5
years. It includes those pertaining to the
expansion of the product distribution, target
market, operational and production
improvements.
c. Long-term or sustainability objectives – are
those that will determine whether an
organization will exist in the long-run or not.
It includes organizational culture and
perception, product relevance and
improvements or those goals that are directly
related to the vision-mission of the organization.
References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting
Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |3

Managers can be classified depending on the magnitude of the effect of their decisions.
1. Operational Managers like supervisors and team leaders will make decisions for a limited
group of persons or a particular activity only.
2. Middle Managers like department heads make decisions that will affect a particular
department or function.
3. Executive Managers will make decisions for the whole organization.

Regardless of the level of the manager, they all underwent the same set of activities in meeting
their responsibilities. These are:

1. Planning is one of the basic functions of managers that involve identifying the different goals
and objectives of an entity and the related strategy and plan of action in order to achieve such
goals and objectives within a given environment using the available resources. In order to
effectively plan the business operations, managers should consider both the internal and
external business environment that they are into. Also, in choosing the strategy or the unique
approach that will give the entity a strategic advantage over its competitors that will be utilized
to achieve such goals and objectives, managers should consider the available resources the
organization have.

2. Executing. It is very important that managers monitor the progress of the activities in terms of
what was already accomplished and what is still needed to be done, if it is still in accordance
with the time and financial budgets, and if the activities are being performed in accordance
with a predetermined standard in order to ensure quality in the output. Executing or
implementing the action plan includes two aspects that managers need to consider:
a. Directing means telling people what activities they will do and the activity’s objectives,
procedures, deadline, and the expected output of the activity.
b. Motivating means making people appreciate the activity that they are to do by telling them
its importance and the implications if it is not executed properly.

3. Controlling. In controlling the business operations, managers needed to refer to the

predetermined standards which is usually the budget, and comparing such standards to what
was actually done and the related results, and for any variation in the planned and actual results,
a corrective actions must be affected if necessary. In this phase of the management cycle,
managers are simply trying to look for the aspects of the operation that need improvements. It
has two phases:
a. The first phase is the determination of any variation between what was planned and what
has transpired during the execution phase. It is very important that managers and their
subordinates adhere to the constructed plan in order to ensure proper coordination within
the organization. However, there are instances wherein a change in environmental
situations will require a deviation in the planned action, there is nothing wrong with
modifying the action plan, but it is very important that such decisions and actions are
monitored and the results being compared to the budget in order to gauge whether proper
actions was carried out or there is a need to change the actions executed.
b. The second phase is to make the necessary changes. In making changes, a manager should
consider whether the situation and scenarios that requires a deviation in the planned action
is temporary or permanent. If such situations are temporary in nature, no change should be
done, however, if it is permanent, there should also be a permanent change in the action
plan.

References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting

Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |4

LESSON 2: MANAGERIAL ACCOUNTING AND MANAGERS

In all of the functions of manager in the Managerial Accounting is a

management cycle, there is a common attribute, making process that includes financial
decisions. The main reason why managers are called as accounting, tax accounting,
such, because they are the people that will manage – information analysis, and other
determination of an action and in making decisions, accounting activities.
managers need information, both financial and non-
financial in nature and the branch of accounting that aims
to provide information to aid managers in their decision Financial Accounting must
making needs in executing its functions and adhere to the conventions of
responsibilities is called Managerial Accounting. Unlike consistency and comparability
financial accounting which mostly serve the needs of to ensure the usefulness of
external users like investors, customers, and government information to parties outside
among others; Managerial Accounting is focus to only the firm.
one internal user, the manager. This is the main reason
why financial and managerial accounting is different. The table below summarizes the difference
between the two branches of accounting.
Difference between Financial and Managerial Accounting
Financial Accounting Managerial Accounting
External Users (Investors, Internal Users (Management Team
Users Creditors, Government Agencies, Members: CEO, COO, Marketing
Customers, Suppliers, etc.) Managers, Production, etc.)
Special reports to be used for Planning,
Output Financial Statements
Monitoring and Controlling
Purpose General Purpose Specific Purpose
GAAP User’s Requirement
Guiding Principle Reliability Relevance
Precision Timeliness
Types of Data
Primarily Financial Financial and Non-financial
Used
Time Orientation Historical/Past/Passive Future Oriented/Active
Unifying Concepts Accounting Equation (A = L + E) Management’s Decision Making
Pertains to individual subunits of the
Content Pertains to the business as a whole
business
Format Highly Aggregated (Condensed) Very Detailed
Annually and sometimes
As frequently as needed by
Frequency Quarterly as required by
management
regulators

The following table shows the different reports required under the different management functions.
Relationship of Managerial Accounting and the Manager’s Functions
Manager’s
Reports Required Frequency
Function
Quarterly and Annual or when there are
Budget
special projects to be undertaken
Planning
Annual or when there is a change in the
Break-Even point analysis
cost structure
Activity Status Daily or Weekly
Executing
Cost-Revenue Report Daily of Weekly
Performance Report Monthly, Quarterly, Annually
Controlling Financial Statement Analysis Annually
Product Line, Departmental, or
Monthly, Quarterly, Annually
Geographical evaluation schedule

References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting

Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |5

LESSON 3: THE FINANCE DEPARTMENT

Regardless of whether a general purpose financial statement or a specific management

report is to be constructed, both will be the responsibility of the company’s controller, the chief
accounting officer of the organization who is in-charge of the different financial position of the
organization and which is usually under the finance department that is headed by the Chief
Financial Officer of the CFO. Another finance department head is the Treasurer, who is
responsible for all the financial transactions of the company. The diagram below shows a typical
organizational chart highlighting the Finance Department of a company.

The Chief Financial Officer usually report directly to the Chief Executive Officer or
Company President and is the main responsible concerning financial matters, operations, and
risks. The CFO or sometimes being referred to as the Vice President for Finance delegates his
responsibilities to the controller and the treasurer. The table below shows the comparison between
the Controller and the Treasurer.

Differences between Controller’s and Treasurer’s Functions

Controller Treasurer
 Responsible for the Financial
Information  Responsible for the Financial Transactions
 Preparation of budgets, FS, tax returns,  Investment Management
Analysis, etc.  Credit and Collection
 Planning and Control  Relationships with Financial Institutions and
 Reporting and Interpreting Investors
 Evaluating and Consulting  Provision of Capital
 Tax Administration  Short-term Financing
 Government Reporting  Banking and Custody
 Protection of Assets  Insurance
 Economic Appraisal

Controller or sometimes being referred to as the Chief/Head Accountant is responsible

for the financial information which includes budget and financial statement preparation,
government reporting like preparation and filing of tax returns and General Information Sheet
(GIS) while Treasurer is responsible for the financial transactions or those transactions that will
involve cash like investment management (regardless whether investment in debt or equity
securities), credit and collection, relationship with the investors and shareholders, and banking.
References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting
Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |6

LESSON 4: ORGANIZATIONAL STRUCTURE

1. Centralized structure. In this type of organizational

structure, the top-level management has
complete control and is the only source of Organizational Structure refers to the
decisions and directives. The chain of method of how a business organization
command if very clear and simple since there put together its people and their
is only one person or a group of person that respective positions that will result in the
headed the organization and everyone else most effective and efficient operation.
are treated as subordinates.
2. Decentralized structure. In this type of organizational structure, the decision making
authority is restricted to a central figure. The goal of this structure is to spread the decision
making power and to empower the lowest possible managerial level. In this kind of structure,
it relieves top-level management the burden of addressing the day-to-day operating challenges
since lower level management are more familiar with issues concerning their areas and with
this kind of set-up, it provides a training program for future members of top-level management.

The Value Chain Concept

The concept classifies the different activities of an
organization into:
1. Primary Activities are generally referring to The Value Chain Concept refers to the
the activities that focus on receiving the identification of the set of interrelated
different raw materials that will be used in the activities that an organization performs
production of goods and rendering of in order to deliver a valuable product
services up to the rendering of after-sale and/or service that will create
services to customers. The following are competitive advantage.
considered as primary activities under the
Value Chain Concept:
a. Inbound Logistics – concerned with receiving, storing, and handling within the organization
the materials delivered by suppliers.
b. Operation/Production – related to the conversion activities of materials into finished goods or
the rendering of services. This area can be split into more departments in certain companies
depending on the required process of production and/or rendering of services.
c. Outbound Logistics – concerned with distributing the final product and/or service to the
customers.
d. Marketing and Sales – this functional area essentially analyses the needs and wants of
customers, how such needs and wants can be addresses by the organization’s products and/or
services, and creating awareness among the target market about the firm’s products and
services. Companies make use of marketing communication tools like advertising, sales
promotions projects, etc. to attract customers to their products.
e. Service – a need to provide services like pre-installation or after-sales service before or after
the sale of the product or service.
2. Support Activities are activities that provide necessary services to allow the effective and
efficient conduct of primary activities. The following are considered to be supporting activities
under the Value Chain Concept:
a. Procurement – responsible for purchasing the materials that are necessary for the company’s
operations. An efficient procurement department should be able to obtain the highest quality
of goods at the lowest prices.
b. Human Resource Management – a function concerned with hiring, training, advancing, and
termination of the organization’s workforce. The goals of the human resource department are
to recruit, developed, and maintain top performing workforce at reasonable costs to the
company.
c. Technology Development – concerned with technological innovation, training and knowledge
that is crucial for most companies today in order to survive.
d. Firm Infrastructure – includes planning and control systems, such as finance, accounting, and
corporate strategy etc.
References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting
Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |7

LESSON 5: EMERGING BUSINESS CONCEPTS

Since the industrial revolution, business management concepts are continuously being
developed or re-introduced which may change how business organizations conducts its activities
which affect how managers execute their responsibilities. This now poses a challenge to
management accountant in order to stay relevant with the changing needs of managers; it is to be
familiar with the following emerging business concepts and understand how these concepts
changes the information needs of managers and their roles when implementing such concepts.
1. Just-In Time Approach. The Just-In Time (JIT)
was first adopted and publicized by Toyota Motor Just-In-Time (JIT) Approach
Corporation as part of its Toyota Production requires that all resources –
System. The objective of the concept is to improve materials, personnel, and
the company’s return on investment by reducing facilities – be acquired and used
inventory and the related costs. The concept was only when they are needed. Its
a response to the fact that Japanese Corporations objectives are to improve
cannot afford large amount of land to warehouse productivity and eliminate waste.
finished products and raw materials. JIT was first
applied in the 1950s when Toyota’s Chief
Engineer, through the examination of accounting assumptions, designs a method that will
increase the factory’s flexibility. Under the JIT concept, raw materials are received just in time
to be assembled into products, and products are completed just in time to be shipped to
customers. The following elements are the requirements for a successful JIT System:
a. Few Suppliers that is willing to make frequent deliveries in small lots – coordination of
production and delivery of materials and parts.
b. Improvement of the product flow lines by creating individual flow line for each separate
product – setting up of focused factory. Manufacturing cells often U-shaped with work
flow through cell in one direction and experiences little waiting time.
c. Reduction of the set-up time – preparing materials in advance (i.e. preheating,
standardizing and centering heights, etc.)
d. Striving for a zero defect – from the raw materials delivered up to the continuous
monitoring by the production workers of the quality of units being worked on.
e. Effective and efficient performance – development of a multi-skilled and flexible
workforce capable of operating many different machines and of performing routine
maintenance on the machines.
f. Small-lot production – requires less space and capital when production is made on small
amounts at a time. Quality problems will be easier to detect since it reveals errors and
bottlenecks.
2. Total Quality Management. The concept Total Quality Management is a concept
can trace its root to the concept introduce that focuses on customer’s concern and
by Frederick Taylor in 1911, management involves employees for the
science. However, it was only during the organization’s continuous improvement
1920’s when the concept of Total Quality efforts. Under this concept, customers
Management was introduce by Dr. Walter are assumed to be the ultimate
Shewart with his work with Bell determinant of the level of quality.
laboratories when he designed the
statistical quality control which aims to
achieve zero defect during the mass production of complex telephone sets. The Total Quality
Management that we know today can be traced to the works of two members of Dr. Shewarts
group, Dr. W. E. Deming and Joseph Duran with their works during World War II in Japan.
Total Quality Management includes all of the organization’s effort to improve quality like
employee training, process improvements, buying new tools, etc. will all be subjected to
customer’s feedback. Another feature of this concept is total employee involvement through
empowerment which will be the basis of the organization’s continuous improvement efforts.
References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting
Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |8

3. Benchmarking. Benchmarking can be Benchmarking is a technique for

defined as the process of identifying, determining a company’s competitive
understanding, and adapting best practices. advantage by comparing its performance
Benchmarking can be as simple as when a with that of its closest competitors.
man compared what he has with that of his Benchmarks are measures of the best
neighbor. It was before and during World practices in an industry.
War II that a process called reverse
engineering, or the dismantling of a finished
product of another company and copying such, is being utilized by companies. However, it was
after World War II, when Dr. W. E. Deming improve the process by stating that companies should
not only copy a product, they should understand how it works. It was in the 1970s that
Benchmarking was recognized as a formal business tool when Robert Camp used the process with
Xerox Corporation, but it was only in the 1990s that Benchmarking gain wide acceptance and
usage in the United Kingdom and the United States. The Benchmarking process is as follows:
a. Internal Study and preliminary competitive analysis
b. Developing long-term commitment to the benchmarking project and coalescing the
benchmarking team
c. Identifying benchmarking partner
d. Information gathering and sharing method
e. Taking action to meet or exceed the benchmark
4. Six Sigma. The concept of Six Sigma as a
measurement standard in product variation,
Six Sigma is a process improvement
non-conformance with its design and method that relies on customer feedback
purpose, can be traced back to the 1920’s and fact-based data gathering and analysis
when Dr. Walter Shewart showed that three techniques to drive process improvement.
sigma from the mean is the point where a
process requires correction. However, the credit for coining the term “Six Sigma” goes to a
Motorola engineer named Bill Smith during the 1980s. But the concept of Six Sigma became more
popular during the 1990s through the usage of General Electric. The concept of Six Sigma seeks
to improve the quality of the process outputs by identifying and removing the causes of defects
(errors) and minimizing variability in manufacturing and business processes. Six Sigma aims to
improve the organization’s product, reduce cost, and increase profit through the DMAIC process:
a. Define (What is the problem);
b. Measure (What is the current state of the problem);
c. Analyze (Identify how the process converts inputs into outputs);
d. Improve (address the problem within the perspective of the process); and
e. Control (evaluate the performance and determine the areas for improvement).
5. Theory of Constraint. The Theory of
Constraint is a management and Constraint is anything that prevents you
improvement concept originally developed from getting more of what you want.
by Eliyahu M. Goldratt in 1984 with the
Theory of Constraint is based on the
publication of his book, The Goal. With the
insight that effectively managing
publication of another book by Dr. Goldratt
constraint is a key to success.
in 1997, the Theory of Constraint was
introduced as part of project management
tools. It is based on the fact that, like a chain with its weakest link, in any complex system at any
point in time, one aspect of such system is limiting its ability to achieve more of its goals; such
limiting aspect is called Bottleneck. Under this theory of constraint, for such system to attain any
significant improvement, that constraint must be identified and the whole system must be managed
with it in mind. The theory of constraint five step processes:
a. Identify the constraint: This may be a physical or policy constraint.
b. Exploit the constraint: Determine the best possible output from the constraint.
c. Subordinate other activities to the constraint: Link the output of other operations to suit the
constraint. Smooth work flow and avoid buildup of work-in-process inventory. Avoid making
the constraint wait for work.
d. Elevate the constraint: In situations where the system constraint still does not have sufficient
output invest in new equipment or increase staff members to increase output.
e. If anything has changed, go back to step one.
References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting
Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 Page |9

LESSON 6: CERTIFIED MANAGEMENT ACCOUNTANT

Since the corporation are generally considered as private entities, they have the discretion on
who to hire as members of their organization. However, in the Philippines, by the provisions given in
Republic Act 9298 or the Philippine Accountancy Act of 2004, any position in any business or
company in the private sector which requires supervising the recording of financial transactions,
preparation of financial statements, coordinating with the external auditors for the audit of such
financial statements and other related functions shall be occupied only by a duly registered Certified
Public Accountant (CPA) if the company has a paid-up capital amounting to Php 5,000.00 and above
and/or an annual revenue amounting to Php 10,000.00 and above. However, if a person is a CPA or
not, providing information for management’s decision making requires a certain level of expertise in
the field of financial planning, analysis, control, and decision support. This can be addressed by further
education like graduate studies and technical training, and certifications. Management Accountants,
in order to establish their authority over their craft in an organization, usually aim to become a Certified
Management Accountant (CMA). An individual who wants to become a CMA need the following:
a. Maintain membership with the Institute of Management Accountants (IMA)
b. Hold a Bachelor’s Degree from an accredited institution or its equivalent
c. Two continuous years of professional experience in management accounting of financial
management
d. Complete and pass the CMA Examination
e. Abide by the IMA’s Statement of Ethical Professional Practice
One of the responsibilities of Certified Management Accountants is to behave ethically. This
is done by acting and encouraging others within their organization to act in accordance with the
overarching principles of honesty, fairness, objectivity, and responsibility. Also, behaving ethically
will also require the adherence to the standards which aims to guide Certified Management
Accountant’s conduct. The standards include:
1. Competence
a. Maintain an appropriate level of expertise by continuing developing knowledge and skills.
b. Perform duties in accordance with relevant laws, regulations and technical standards.
c. Provide decision support information and recommendations that are accurate, clear, concise and
timely.
d. Recognize and communicate professional limitations or other constraints that would preclude
responsible judgment or successful performance of an activity.
2. Confidentiality
a. Keep information confidential except when disclosure is authorized or legally required.
b. Inform all relevant parties regarding appropriate use of confidential information. Monitor
subordinates’ activities to ensure compliance.
c. Refrain from using confidential information for unethical and illegal advantage.
3. Integrity
a. Mitigate actual conflict of interest; regularly communicate with business associates to avoid
apparent conflicts of interest. Advise all parties of any potential conflicts.
b. Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
c. Abstain from engaging in or supporting any activity that might discredit the profession.
4. Credibility
a. Communicate information fairly and objectively
b. Disclose to influence an intended user’s understanding of the reports, analyses, or
recommendations.
c. Disclose delays or deficiencies in information, timeliness, processing, or internal controls in
conformance with organization policy and/or applicable law.
5. Resolution of Ethical Conflicts
a. Discuss the issue with your immediate supervisor except when it appears that the supervisor is
involved. In that case, preset the issue to the next level. If you cannot achieve a satisfactory
resolution, submit the issue to the next management level.
b. Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics counselor
or other impartial advisor to obtain a better understanding of possible courses of action.
c. Consult your own attorney as to legal obligations and rights concerning the ethical conflict.

IV. SUMMATIVE ASSESSMENT

See the attached activity worksheet that will serve as the summative assessment for this module.

References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting

Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor
 P a g e | 10

SAINT JOSEPH COLLEGE OF SINDANGAN INCORPORATED

Sindangan, Zamboanga del Norte, Philippines
website: www.sjcsi.edu.ph
email add: stjoseph_68@yahoo.com.ph
Telefax No. (065) 224-2710 or Telephone No. (065) 918-5260
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
First Semester, 2021-2022
Activity Worksheet 1
MANAGERIAL ACCOUNTING
Name: _____________________________________________ Date: _____________________
Instructions: Write your answers in the space provided for.
Test your understanding of the different concepts in Managerial Accounting.
1. Define Managerial Accounting in your own understanding.
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2. Describe the three major activities of a manager. (state some situation)
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3. How would you differentiate Managerial Accounting from Financial Accounting?
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4. Where does the Theory of Constraints recommend that improvement efforts be focused?
________________________________________________________________________
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5. Cite a topic covered in this module and explain how you can apply it in your everyday
life.
________________________________________________________________________
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________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

References: Mark Benedict M. Guia (2019) Basics of Managerial Accounting

Susan V. Crosson and Belverd E. Needles, Jr. (2010) Managerial Accounting (9th Edition)
Ray H. Garrison, Eric W. Noreen and Peter C. Brewer (2007) Managerial Accounting (12th Edition)
Prepared by: JUNALYN S. ENDRINA, MBA
BSBA Part-Time Instructor