POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

BILLING AND COLLECTION MANAGEMENT

OF AN OFFICE RENTAL BUSINESS IN
MALATE, MANILA

A Thesis
Presented to the Faculty of the
College of Business Administration Graduate School
Polytechnic University of the Philippines
Sta. Mesa, Manila

In Partial fulfillment of the Requirements for the Degree

Master in Business Administration

by

Chona D. Marcial

December 2018

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ACKNOWLEDGMENTS

The researcher would like to express her deepest gratitude to the following who

inspired and extended assistance and concerned to make this study realized:

The researcher acknowledges first and foremost the Lord, Jesus Christ for the

wisdom, knowledge, financial help, strength and good health He bestowed upon her.

Professors, mentors and friends, for the support extended to the researcher.

Mr. Jerome P. Dumlao, MBA her thesis adviser, for his unwavering support and

kindness; his judicious pieces of advice and assistance when the researcher is in doubt,

his patience in checking the manuscript and developed system;

Engr. Leodegario SM. Bautista, for his support in the statistical treatment of

data;

Dr. Guillermo C. Bungato, Jr., Dr. Arturo C. Caras, Dr. Antonio N. Alcantara

and Dr. Raquel G. Ramos, the panelists, for their expertise and taking the time to read

this research work and thoroughly review and make helpful suggestions that enriched

the study;

Mr. Rolando R. Marcial, her beloved spouse, for his love, patience, care and

moral support; and to her family, her father, Eulogio L. Dungog, her mother Ramonita

P. Dungog, and her children, Seth Marc and AJ Kryll, who served as inspiration in

pursuing this academic requirement.

Ms. Carmencita T. Abella, Ms. Ofelia P. Leido, Ms. Reina Mercedes S. Tira

and Mr. Edgar N. Geolina, her superiors, and to the rest of her co-workers, the

deepest gratitude of the researcher for their encouragement, understanding and moral

support;

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Ms. Maritess Constantino and Mr. Alfredo Hernandez, III, her co-worker, for

their personal assistance during the data-gathering procedure;

To her MBA colleagues and friends, Jerielyn Anos, Jetree Lapuz, Valerie

Vallejo, Alfer Tiong, Lhaine Barrientos, Shane Santos, Naidette Lasaleta, Rock

Bryan Matias, Ailene Naga and Keneth Paguirigan for the inspiration,

encouragement, support and valuable help;

Finally, this would not have been possible had it not been for the generous and

willing assistance of the many respondents who very kindly participated in this study.

To all these kind-hearted people, the researcher is truly grateful.

CDM

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CERTIFICATION OF ORIGINALITY

This is to certify that the research work presented in this thesis, BILLING AND

COLLECTION MANAGEMENT OF AN OFFICE RENTAL BUSINESS IN MALATE,

MANILA for the degree Master in Business Administration at the Polytechnic University

of the Philippines, embodies the result of original and scholarly work carried out by the

undersigned. This thesis does not contain words or ideas taken from published sources

or written works that have been accepted as basis for the award of a degree from any

higher education institution, except where proper referencing and acknowledgement

were made.

CHONA D. MARCIAL
Researcher
December 2018

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ABSTRACT

Title : Billing and Collection Management of an Office Rental

Business in Malate, Manila

Researcher : Chona D. Marcial

Degree : Master in Business Administration

Institution : Polytechnic University of the Philippines

Year : 2018

Adviser : Jerome P. Dumlao, MBA

This study aimed to assess the effectiveness of the billing and collection management

of an office rental business in Malate, Manila. Descriptive research method was used to

interpret data. The researcher utilized primary data through constructed and modified

questions from KnowledgeLeader.com for the survey questionnaire and secondary data

from books and other literatures. Frequency, percentage, weighted mean, t-test, ANOVA

and ranking were used to as statistical tools.

Majority of the respondents worked from a corporation, with 5 to 10 years and 11 to

15 years as tenants, employed more than 20 employees, included in the category of Others

in the nature of business, bachelor’s degree holders, rank and file employees with 1 to 5

years of working in the company. The results showed in the level of effectiveness of billing

and collection management of an office rental business in terms of memorandum,

preparation, sending of bills, terms of payment and penalty all items were rated by the

respondents “Effective”. When grouped according to profile, the respondents gave the

highest weighted mean to billing practices in terms of memorandum and the lowest

weighted mean was rated to collection practices in terms of terms of payment.

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There was no significant difference in the respondents’ assessment on the level of

effectiveness of billing and collection management of an office rental business when

grouped according to form of business organization, number of years as tenant, number of

employees, nature of business, highest educational attainment, job position level and

number of years in the company.

Keywords: Polytechnic University of the Philppines, MBA, Billing and Collection

Management, Office Rental, Billing and Collection Practices

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TABLE OF CONTENTS
Page

TITLE i

CERTIFICATION AND APPROVAL SHEET ii

ACKNOWLEDGMENTS iii

CERTIFICATION OF ORIGINALITY v

ABSTRACT vi

TABLE OF CONTENTS viii

LIST OF TABLES x

LIST OF FIGURES xii

1 THE PROBLEM AND ITS BACKGROUND

Introduction 1
Theoretical Framework 5
Conceptual Framework 10
Statement of the Problem 11
Hypothesis 13
Scope and Limitations of the Study 13
Significance of the Study 13
Definition of Terms 14

2 REVIEW OF RELATED LITERATURE AND STUDIES

Internal Control 17
Demographic Profile 19
Billing Management 21
Collection Management 24
Billing Management in Terms of Memorandum 26
Billing Management in Terms of Preparation 28
Billing Management in Terms of Sending of Bills 30
Collection Management in Terms of Terms of Payment 32
Collection Management in Terms of Penalty 33
Synthesis of the Reviewed Literature and Studies 36

3 RESEARCH METHODOLOGY

Method of Research 37
Population, Sample Size and Sampling Technique 37

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Description of Respondents 39
Research Instruments 39
Data Gathering Procedure 40
Statistical Treatment of Data 41

4 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Profile of the Respondents 43

Respondents’ Assessment on the Level of Effectiveness of Billing

and Collection Management of an Office Rental Business 49

Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing and Collection Management of an
Office Rental Business When Grouped According to Profile 61

5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary 67
Findings 67
Conclusions 70
Recommendations 70

REFERENCES 73

APPENDICES

Appendix 1 – Survey Questionnaire 79

Appendix 2 – Sample Request Letter to Conduct a Study 82
Appendix 3 – Certification of Statistical Treatment of Data 83
Appendix 4 – Certification of Editing 84
Appendix 5 – Certification of Originality 85
Appendix 6 – Biographical Statement 86

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LIST OF TABLES

Number Title Page

1 Frequency and Percentage Distribution of the Respondents

According to Form of Business Organization 43

2 Frequency and Percentage Distribution of the Respondents

According to Number of Years as Tenant 44

3 Frequency and Percentage Distribution of the Respondents

According to Number of Employees 45

4 Frequency and Percentage Distribution of the Respondents

According to Nature of Business 46

5 Frequency and Percentage Distribution of the Respondents

According to Highest Educational Attainment 47

6 Frequency and Percentage Distribution of the Respondents

According to Job Position Level 48

7 Frequency and Percentage Distribution of the Respondents

According to Number of Years in the Company 48

8 Level of Effectiveness of Billing Management of An Office

Rental Business in Terms of Memorandum 50

9 Level of Effectiveness of Billing Management of An Office

Rental Business in Terms of Preparation 52

10 Level of Effectiveness of Billing Management of An Office

Rental Business in Terms of Sending of Bills 54

11 Level of Effectiveness of Billing Management of An Office

Rental Business in Terms of Payment 56

12 Level of Effectiveness of Billing Management of An Office

Rental Business in Terms of Penalty 58

13 Level of Effectiveness of Billing and Collection Management

of An Office Rental Business 60

14 Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing Management of An Office
Business When They Are Grouped According
To Form of Business Organization 61

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Number Title Page

15 Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing Mangement of An Office Rental
Business When They Are Grouped According
To Number of Years as Tenant 62

16 Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing Mangement of An Office Rental
Business When They Are Grouped According
To Number of Employees 63

17 Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing Mangement of An Office Rental
Business When They Are Grouped According
To Nature of Business 63

18 Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing Mangement of An Office Rental
Business When They Are Grouped According
To Highest Educational Attainment 64

19 Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing Mangement of An Office Rental
Business When They Are Grouped According
To Job Position Level 65

20 Significant Difference in the Respondents’ Assessment on the

Effectiveness of Billing Mangement of An Office Rental
Business When They Are Grouped According
To Number of Years in the Company 65

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LIST OF FIGURES

Number Title Page

1 COSO Internal Control Model 6

2 The COSO Cube 7

3 COSO’s 17 Principle of Internal Control – Summarized 8

4 Research Paradigm 11

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