F-ODI-2056 1

Republic of the Philippines

Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

SYLLABUS IN STRATEGIC COST MANAGEMENT AE23
The Cagayan State University aims to produce graduates who will exhibit:
Competence - critical thinker, creative problem-solver, competitive performer regionally, nationally and globally
Intended Graduate Social Responsibility - sensitive to ethical demands and compassionate particularly to the marginalized, steward of the environment for future generations while
Attributes championing development and socially just and an advocate of economic and social equity
Unifying Presence - uniting theory and practice, uniting strata of society, uniting tradition and innovation, uniting the nation, the ASEAN region and the world and
uniting the University and the community
Graduates of the college will be able to:
1. apply knowledge and skills acquired with attitudes and values to the development of business, industry and entrepreneurship, locally, nationally, regionally and
globally;
2. initiate and participate in research that allows commerce and enterprise to be responsive to the challenges of inclusive growth and progress;
College Intended Learning
3. exhibit social responsibility, a firm commitment to social justice and particular solicitude to the marginalized sectors of society;
Outcomes
4. manifest personal and interpersonal skills imbued with professional ethics and perform tasks in a gender responsive manner;
5. work effectively and independently in multi-disciplinary and multi-cultural teams; and
6. preserve and promote “Filipino historical and cultural heritage.

COURSE MAP At the end of the program, the graduates in Bachelor of Science in Accountancy are expected to:
After completion of the course, the students should be able to: PILO 1 PILO 2 PILO 3 PILO 4 PILO 5
1. Comprehend and Demonstrate Mastery 1. ofresolve
the Strategic Management
business issues and Techniques
problems, withandaprinciples.
global and strategic perspective using their knowledge and X technical proficiency in the areas X
of financialXaccounting
2. Discuss, comprehend and demonstrate knowledge of cost-volume-profit
and reporting, (CVP)
cost accounting and analysis management accounting and control, taxation and accounting
management, X information system X X
3. Discuss the concept of Activity Based2. Costing
conduct Accountancy
(ABC) research
and Activity Basedthrough independent
Management (ABM)studies of relevant literature and appropriate use ofXaccounting theory and methodologies X X
4. Program Intended 3. employ
Discourse about the principles of Standard Costing. technology as business tool in capturing financial and non-financial information, generating reports
X and making decisions. X X
5. overview of Pricing and4.Profitability
LearninganOutcomes
Provides Apply knowledge
Analysis and skills that will enable them to successfully respond to various types of assessments X (including professional licensureXand certification);
X and
6. 5. Confidently
Enumerate the steps to complete a master Budget. maintain a commitment to good corporate citizenship, social responsibility and ethical practice
X in performing functions as accountant.
X X
7. Exhibit mastery of the ramifications of decentralization. X X X X
8. Enumerate the various situations wherein Tactical Decision Making is indispensable X X X
9. Discuss the essence of Strategic Cost Management to a business’ survival. X X X X
10. Compute and interpret cost-volume-profit related circumstances in management. X X X X
11. Compute and allocate costs using Activity Based Costing (ABC) and Standard Costing. X X X X
AE 23 Course Title STRATEGIC COST MANAGEMENT
12. Prepare entries related to Activity Based Costing and Standard Costing. X X X X
13. Conduct Pricing and Profitability Analysis X X X X
14. Prepare the master budget. X X X X
15. Prepare tactical decision-making computations and provide the best alternative course of action. X X X

Revision No. 03 September 12, 2019

 F-ODI-2056 2
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Course Code
Credit Units 3 Semester Second School Year 2019 - 2020 Number of Lecture Hours 54

Pre-Requisite/s AE 22 Cost Management and Control Co-Requisite/s None Number of Laboratory Hours None

Course Description. This course is designed to further your cleverness about managerial advisory competence. In essence, it is the
application of the principles you have mastered in the course cost management and control. The concepts of tactical decision making will be
emphasized and added to your reserve of strategic business dexterity. We will be discussing the topics: cost-volume-profit (CVP) analysis,
Course Description Activity Based Costing (ABC) and Activity Based Management (ABM), Standard Costing, Pricing and Profitability Analysis, Budgeting
for Profit and Control, Decentralization, Activity Resource Usage Model and Tactical Decision Making, and finally, the Strategic Cost
Management as a swift application of all themes. Short Case Analysis would be introduced too. So, steam up, charge your brains and ready
your calculators or rather buy a new one because we would be dealing with a lot of numbers for more informed decision making.
Class Standing 20%
Attendance 5%
Recitation 5%
Seatwork/Quiz 5%
Grading System Assignment 5%
Quizzes 30%
Department Examination 50%
Total 100%

Course Learning Plan

COURSE LEARNING OUTCOMES Learning Content TIME TEACHING TEACHING AND TEACHING AND LEARNING

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F-ODI-2056 3
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

ALLOTME AND LEARNING LEARNING LEARNING
ASSESSMENT
NT ACTIVITIES REFERENCES RESOURCES

LEC LAB

At the end of the session, the Class Orientation 1  Sharing  Student Manual  Chalkboard  Recitation of
students should be able to: expectations  Syllabus  Student manual names,
1.Getting to Know each Other from the classroom
 Name and recognize the teacher and 2.House Rules teacher and rules, vision,
co-students 3.Grading System the students mission and
 Summarize classroom rules; 4.Overview of the Course.  Lecture philosophy.
 Discuss the subject coverage and 5. Use of the Syllabus  Discussion  Discussion of
requirements. 6. Generalization, inquiries and valuing subject
 Discuss the importance of the course coverage
syllabus.
 Describe the relationship of the
course to the school’s vision-mission
and philosophy

At the end of the session, the 1. Cost-Volume-Profit (CVP) Analysis 6  Definition of  Hansen & Mowen  Chalkboard  Recitation
students should be able to: terms (2019), Strategic  Calculator  Quiz
a. Basic Concepts for CVP Analysis  Preparation Cost Management  Case analysis
 Enumerate the components of CVP b. The CVP Graph of CVP
Chap. 1, pp. 1-33
analysis c. The Equation Method for Break-Even analyses.
 Making Notes
 Compute for break-even point in and Target Income
sales units and pesos using the two d. Contribution Margin Approach appropriate Hand-outs
approaches. e. The Break-Even Point and Target Profit decisions
 Compute the target sales, profits, in Units and Sales Revenue
before and after taxes, including f. After-Tax Profit Targets
changes in variable if necessary. g. Changes in CVP variables
 Explain the CVP graph  Margin of Safety
 Compute for and explain margin of  Operating Leverage

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F-ODI-2056 4
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

safety and operating leverage.  Sensitivity Analysis
 Compute for and decide for the most h. Sales Mix
appropriate course of action

At the end of the session, the 2. Activity Based Costing (ABC) and  Chalkboard  Recitation
students should be able to: Activity Based Management (ABM)  Hansen & Mowen  Calculator  Quiz
5
 Exercises on (2019), Strategic  Projector  Short research
 Explain the relationship between 1. Basic Concepts of ABC cost Cost Management
ABC and ABM. 2. Activity-Based Management assignment.
 Definition of Chap. 8, pp. 405-
 Discuss the implementation of 3. The Relationship of Activity-Based
terms 431
ABM and causes of failures. Costing and  Preparation of Notes
 Compare and contrast Financial- 4. Activity-Based Management entries. Hand-outs
Based versus Activity-Based 5. Implementing Activity-Based
Responsibility Accounting At the Management
end of the session, the students  Discussion of the ABM
should be able to: Implementation Model
 Explain the relationship between  Systems Planning
ABC and ABM.
 Activity Identification,
 Discuss the implementation of
Definition, and Classification
ABM and causes of failures.
 Why ABM Implementations Fail
 Compare and contrast Financial-
Based versus Activity-Based 6. Financial-Based versus Activity-
Responsibility Accounting Based Responsibility Accounting
 Establishing & evaluating
Performance
7. Assigning Rewards

At the end of the session, the 3. Standard Costing  Chalkboard  Recitation

students should be able to:  Flores, Integrated  Calculator  Quiz
6
1. The Standard Costing Process  Exercises on Cost Accounting  Projector  Seatwork
 Discuss the Standard Costing 2. Advantages, disadvantages & cost (2016)
assignment

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F-ODI-2056 5
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Process limitations of Standard Costing and variance Chap. 14, pp. 315-
 Discuss the Advantages, 3. Types of Variances computations. 341
disadvantages & limitations of  Direct material  Definition of
Notes
terms
Standard Costing  Direct labor
 Compute for the variances  Preparation of Hand-outs
 Overhead entries.
 Allocate variances to appropriate 4. Allocation of variances
 Prepare journal entries 5. Standard costing Income statement
 Prepare the standard costing 6. Prepare standard costing journal
income statement entries

----------PRELIMINARY EXAMINATION----------
At the end of the session, the 4. Pricing and Profitability Analysis  Chalkboard  Recitation
students should be able to:  Hansen & Mowen  Calculator  Quiz
6  Exercises on
1. Basic Pricing Concepts pricing (2019), Strategic  Projector  Homework
 Discuss the concept behind  Demand and Supply computations Cost Management
pricing.  Price Elasticity of Demand & profitability Chap. 2, pp. 57-90
 Enumerate and discuss the  Market Structure and Price analysis. Notes
different pricing techniques 2. Cost and Pricing Policies  Definition of
Hand-outs
 Discuss the illegal pricing  Cost-Based Pricing terms
practices.  Discussion
 Target Costing and Pricing
 Compute for profit under  Other Pricing Policies
absorption and variable costing 3. The Legal System and Pricing
approaches
 Predatory Pricing
 Compare and contrast
 Price Discrimination
absorption and variable costing
4. Measuring Profit
approaches
 Compute for divisional profit 1. Why Measure Profit
and integrated profit. 2. Absorption-Costing Approach
 Discuss why profit computation 3. Variable-Costing Approach
is needed. 4. Profitability of Segments,
divisions and product lines

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F-ODI-2056 6
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

5. Divisional & overall Profit

At the end of the session, the 5. Budgeting for Profit and Control  Preparation of  Hansen & Mowen  Chalkboard  Preparation of a
students should be able to: budgets (2019), Strategic  Calculator comprehensive
8
1. The Role of Budgeting in Planning  Definition of  Projector budget
Cost Management
 Discuss the role of budgeting for and Control terms  Quiz
 Discussion Chap. 4, pp. 164-
planning and control  Purposes of Budgeting
 Prepare both operating and financial 207
 The Budgeting Process
budgets Notes
 Forecasting Sales
 Prepare and discuss flexible budgets Hand-outs
 Forecasting Other Variables
2. Preparing the Operating Budget
 Sales
 Production
 Direct Materials Purchases
 Direct Labor
 Overhead
 Ending Finished Goods
 Cost of Goods Sold
 Marketing Expense
 Administrative Expense
 Additional Operating
 Income Statement
 Budget for Merchandising &
Service Firms

3. Preparing the Financial Budget

 The Cash Budget
 Budgeted Balance Sheet
4. Flexible Budgets for Planning and

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F-ODI-2056 7
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Control
5. Static Budgets versus Flexible
Budgets

At the end of the session, the 6. decentralization: Responsibility  Exercise:  Hansen & Mowen  Chalkboard  Recitation
students should be able to: Accounting, Performance Computation (2019), Strategic  Calculator  Quiz
8
Evaluation and Transfer Pricing of transfer  Projector
Cost Management
 Discus responsibility prices.
 Lecture Chap. 6, pp. 282-
accounting 1. Responsibility Accounting
 Discussion 316
 Discuss decentralization and  Types of Responsibility Centers
Notes
its units  The Role of Information and
Hand-outs
 Discuss the relevance of Accountability
transfer pricing in relation to 2. Decentralization
performance evaluation and  Reasons for Decentralization
incentives.  The Units of Decentralization
 Compute for transfer prices 3. Measuring the Performance of
using the different methods. Investment Centers
 Return on Investment
 Residual Income
 Economic Value Added
 Multiple Measures
4. Measuring and Rewarding the
Performance of Managers
 Incentive Pay for Managers-
Encouraging Goal Congruence
 Managerial Rewards
 Measuring Performance in the
Multinational Firm
5. Transfer Pricing
 Transfer Pricing & Income

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F-ODI-2056 8
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

6. Setting Transfer Prices
 Market Price
 Negotiated Transfer Prices
 Cost-Based Transfer Prices
 Transfer Pricing in
Multinational Firms
----------MIDTERM EXAMINATIONS----------

At the end of the session, the 7. Activity Resource Usage Model and
students should be able to: Tactical Decision Making  Chalkboard  Recitation
10  Definition of
 Hansen & Mowen  Calculator
terms  Quiz
 Discuss the Tactical 1. Tactical Decision Making  Computation of (2019), Strategic  Projector
 Case Analysis
Decision-Making Process  The Tactical Decision-Making relevant costs Cost Management
 Differentiate relevant cost Process  Computation Chap. 3, pp. 119-
from irrelevant cost.  Qualitative Factors for and 142
 Compute and decide on 2. Relevant Costs and Revenues interpretation
of tactical Notes
tactical decisions  Relevant Costs
analyses Hand-outs
 Irrelevant Cost
3. Relevancy, Cost Behavior, and the
Activity Resource Usage Model
 Flexible Resources
 Committed Resources
4. Sample Tactical Decision Making
 Make-or-Buy
 Operate or shutdown
 Special-Order Decisions
 Keep-or-Drop Decisions
 Sell as is or Process Further
5. Relevant Costing and Ethical

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F-ODI-2056 9
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Behavior

At the end of the session, the 8. Strategic Cost Management  Recitation

students should be able to: 4  Lecture  Chalkboard  Quiz
1. Basic Concepts  Hansen & Mowen
 Discussions  Calculator  Case analysis
 Discuss the Basic Concepts 2. Strategic Positioning Preparation of (2019), Strategic

 Projector Short
& Strategic Positioning  Cost Leadership entries Cost Management
Research
 Discuss the concept of  Differentiation Chap. 9, pp. 453-
Value-Chain and value-Chain  Focusing 473
Analysis 3. Value-Chain Framework, Linkages, Notes
 Explain life cycle cost and Activities Hand-outs
management 4. Value-Chain Analysis
 Discuss JIT and  Exploiting Internal Linkages
backflushing  Exploiting Supplier Linkages
 Exploiting Customer Linkages
5. Life-Cycle Cost Management
 Product Life-Cycle Viewpoints
 Interactive Viewpoint
 Role of Target Costing
6. Just-in-Time (JIT) Manufacturing
and Purchasing
7. JIT and Its Effect on the Cost
Management System
 Traceability of Overhead Costs
 Product Costing
 Backflush Costing
 Variations 1 and 2, 3 and 4
----------FINAL EXAMINATIONS----------

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 F-ODI-2056 10
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

RUBRIC FOR ASSESSMENT TO BE USED FOR MCOs

Criteria (Short Case analysis) Excellent Good Satisfactory Unsatisfactory

91 - 100% 81 - 90% 71 - 80% 70 - 61%

Evidence of preparation (organized presentation, presentation/discussion flows well, no awkward pauses or confusion from the
group, evidence you did your homework)

Content (group presented accurate & relevant information, appeared knowledgeable about the case studies assigned and the topic
discussed, offered strategies for dealing with the problems identified in the case studies)

Connection (group identified campus resources to help with the problem/issues, discussed relevance to own experience)

Delivery (clear and logical organization, effective introduction and conclusion, creativity, transition between speakers, oral
communication skills—eye contact)

Discussion (group initiates and maintains class discussion concerning assigned case studies, use of visual aids, good use of time,
involves classmates)

OTHER COURSE REQUIREMENTS

Aside from the major course outputs, the student will be assessed at other times during the term by the following:
 Class Participation
 Seatwork
 Group Report
COURSE POLICIES:

• Attendance – Students are required to attend classes regularly. Attendance is 5% of the total grade. Once a student acquires absences of more than 20% of the total number of
meetings, the students will automatically get a failing grade.
• Class participation – Students are encouraged to participate in all class activities.
• Late work – Late submission of work will get points deduction (5% deduction per day)
• Missed exams – Students who missed a quiz will not be given a special quiz unless excused with an SO. A special exam may be given to a student who missed a major exam but
have a different type of exam.
• Academic integrity – Students must be honest and respectful at all times.

Revision No. 03 September 12, 2019

F-ODI-2056 11
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

• Requests for extensions and for rescheduling of exams – In case the teacher is not available on the scheduled examination date, rescheduling will be decided by the entire class.
• Expectations for student conduct in the classroom or laboratory – The students are expected to submit quality and authentic output in all activities.

Input for Revision: Updated the Following Areas:

Learning Contents and Outcomes;
Teaching and Learning Activities;
Teaching and Learning References

References:

Textbooks:
 Hansen, Don R. & Mowen, Maryanne M. (2019) Strategic Cost Management, C&E Publishing Inc, Quezon City
 Flores, Marlon O. (2016) Integrated Cost Accounting, Principles and Applications (1 st Edition), Rex Printing Company, Inc., Quezon City

Other suggested books:

1 Cabrera, Ma. Elenita B. & Cabrera, Gilbert A. B. (2019) Strategic Cost Management, GIC Enterprises & Co., Inc., Manila
2 Guerrero, P. (2017), Cost Accounting: Principles and Procedural Applications, GIC Enterprises & Co., Inc.
3 Cabrera, Ma. Elenita B., (2017) Management Accounting Concepts and Applications, GIC Enterprises & Co., Inc., Manila
4 Cabrera, M. (2017), Management Advisory Services: Comprehensive CPA Reviewer, GIC Enterprise & Co., Inc.
5 Flores, Marlon O. (2016) Integrated Cost Accounting, Principles and Applications (1 st Edition), Rex Printing Company, Inc., Quezon City
6 Horngren, Charles T., et al (2013) Cost Accounting, A Managerial Emphasis(14 th edition), Pearson Education Limited, England
7 Mowen, Maryanne M., Hansen, Don R.(2013), Introduction to Cost Accounting, Cengage Learning Asia Pte Ltd
8 Roque, Rodelio S., (2010) Reviewer in Management Advisory Services, GIC Enterprises & Co., Inc., Manila
9 Raiborn, Kinney, Prather-Kinsey (2009) Cost Accounting (7th ed.), South-Western, Thomson Learning Asia, Singapore

Internet sites:
1. http://cpadiary.wordpress.com
2. www.cengagebrain.com

Revision No. 03 September 12, 2019

F-ODI-2056 12
Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

3. www.myaccountinglab.com
4. icpa.com

Prepared by: Date of Revision/Enrichment: January 31, 2020

Victor P. Mangoma, CPA, MBA

Faculty

Reymond I. Domingo, CPA, MBA/Cornelio A. Addun, CPA, MBA

Program Coordinator/Department Chair

Endorsed by:

Antonia Josefa A. Taguinod, MBM

College Dean

Approved by:

MARIDEN VENTURA-CAUILAN, DPA

Vice President for Academic Affairs

Revision No. 03 September 12, 2019