Colegio de San Juan de Letran

Dominican Hills, Brgy. Gabon, Abucay, Bataan

SY 2008 – 2009

I. Course Code : Accounting 108

II. Course Title : Management Accounting II

III. Course Credit : 3 units

IV. Course Prerequisite : Management Accounting 1

V. Course Description : This second part of management accounting deals with the application of techniques and concepts focusing on
segment reporting, profitability analysis, and decentralization; information for decision making purpose ( short-term and long-
term) and non-financial indicators such as productivity per employee or per service unit; decision making affecting short-run
operation of the company; capital budgeting decisions; and environment cost accounting.

VI. Course Rationale : The CPA of today is not a mere auditor but a business advisor; therefore, entrants to the profession as business advisor
should know application of techniques used in management accounting

VII. Course Objectives :

A. General Objective : At the end of the course, the students are expected to have established a sound knowledge in the field of financial
management as applied in Management Advisory Services

B. Specific Objectives :
1. Cognitive : Obtain a sufficient comprehensive knowledge in management decision-making processes such as planning and control
techniques in business operations. Develop the ability to be analytical in the decision making process and further understand
basic concepts of environment cost accounting.
 2. Affective : Develop and exercise professional attitude by being honest, objective and technically components as well as to be
intellectually independent in giving advises and recommendations in rendering management services. Prepare and analyze
accounting data, apply it to a range of planning, control and decision-making situations and adapt it to accommodate change.

3. Psychomotor : Learn how to use computers and other office machines and an opportunity to apply computer skills to management
accounting. Compare strengths and weaknesses of capital investment evaluation methods.

VIII. Course Outline

Specific Objectives Subject Matter Values Teaching Instructional Evaluation Time Expected
Integrated Method Materials Frame Output

Identify the concepts 1. Working Capital Judgment. Lecture- Books Recitation 1sr week Ability to
and principles of Management discussion Illustrative/ Quiz to 3rd determine the
working capital 1.1 Working capital Brainstorming Demonstration Short case week concepts and
management in the policy Problem- Problems analysis principles used
day-to-day business 1.1.1 Cash flow cycle solving Exercises in the
operations. 1.1.2 Sources and Internet Accrual FS and management of
uses of working Surfing reports working capital
capital for the day-to-
1.1.3 Level of working day business
capital and operations.
financing
policies
1.2 Cash an marketable
securities
management
1.2.1 Objective and
factors that
contribute to
sound cash
 management
1.2.2 Reasons for
holding cash/
marketable
securities
1.2.3 Management of
cash collection
and
disbursements
1.2.4 Matching of
costs and
benefits of cash
management
1.2.5 Type of risk
related to
investment in
marketable
securities
1.3 Receivables
Discuss the basic Management
concepts and principles 1.3.1 Objectives
of capital budgeting. 1.3.2 Credit Policy
1.3.3 Analyzing Understanding
changes in Objectivity Books Quiz 4th week the basic
credit policy Appreciation Illustrative/ Recitation to 9th concepts and
variables Demonstration Research on week principles of
1.4 Inventory Lecture- Problems actual capital
1.4.1 Objectives discussion Exercises methods used budgeting.
1.4.2 Inventory control Question and by the industry
system answer Accrual FS and in the
1.4.2.1 Just-in-time teaching reports evaluation of
(JIT) Problem- the capital
1.4.2.2 Cost of solving investment
Inventory Internet proposals
1.4.2.3 Economic Surfing
order
 quantity
COMMUNITY (EOQ) Awareness Books Quiz Fulfillment of
SERVICE 1.4.2.4 Reorder Appreciation Illustrations social
INTEGRATION Point Social responsibility
(ROP) Responsibility through service
Explain social to the adapted
responsibility and how it 2. Capital budgeting community.
is applied to the concepts, processes and
adapted community. techniques Lecture-
2.1 Non-discounted discussion
cash flow Internet
2.2 Discounted cash Surfing
flows method Orientation on
2.2.1 Net present value the basic
Identify the basic and profitability index Recitation 10th-13th concepts and
concepts and principles 2.2.2 Internal rate of Develop one’s Books Quiz week. principles in
of long-term financing return logical thinking Illustrative/ long-term
in making long-term 2.2.3 Discounted if faced with Demonstration financing and
financing decisions. payback the different Problems basis for
2.3 Cost of Capital situations Exercises decision.
relating to
long-term Actrual FS and
financing reports
decisions.
Question and Appreciation on
Responsibility answer Quiz the importance
Explain the usefulness accounting Develop one’s teaching Books Research on 14th-18th of a project
of a project feasibility concern for his Reporting Illustrative/ the project week feasibility study
study to the potential fellowmen and Internet Demonstration feasibility to the potential
investors and to the his country in Surfing Problems study investors to the
country. the project Exercises country.
feasibility
study. Actrual FS and
reports
MID-TERM
EXAMINATION
 Problem-
solving
Lecture- Skill in making
3. Long-term financing Discussion a feasibility
decisions Reporting study for a
COMMUNITY 3.1 Capital structure Internet project
SERVICE and Objectivity Surfing Project-Simple beneficial to
INTEGRATION leverage Perseverance Illustrations/ Feasibility the community
3.2 Raising debt Patience Sample Study
Illustrate the capital and Feasibility
procedures in equity capital studies
preparing a feasibility 3.3 Hybrid financing,
study and apply in the preferred stock,
adapted community. leasing
and option
securities.

4. Project Feasibility study

4.1 Nature, purpose
and component
4.2 Development Lecture-
and analysis of discussion
project revenue Internet
and cost under Surfing
specific
assumptions
4.3 Procedures in
the preparation
of projected
financial
statements
4.4 Analysis of
financial
projections
 4.5 Sensitivity
analysis

Actual preparation of a
feasibility study.

FINAL EXAMINATION

VI. Grading System :

Midterm Grade: Pre-final Grade:
Class Standing - 30% Class Standing - 30%
Quizzes - 30% Quizzes - 30%
Mid-term Exams - 40% Mid-term Exams - 40%
100% 100%

Final Grade = (Mid-term Grade + Pre-Final Grade) / 2

VII References:
Main References: Louderback, Holmes, Managerial Accounting, 2006 Edition

Other References: Rodelio S.Roque, Management Advisory Services , 2004 edition

Elenita B. Cabrera, Management Services, 2007 edition
Dominick and Louderback. Managerial Accounting, 2004 edition
Journal of Accountancy
Journal of Accounting Research