Chapter I

THE PROBLEM AND ITS BACKGROUND

Management accounting concentrations cultivate students' skills in financial planning,

control, decision-making, and problem-solving. Students train to become strategic partners by
using business sense, accounting principles, and financial data to help executives make sound
decisions. Graduates of management accounting programs often work as accounting managers,
cost accountants, or CPAs (Accounting.com). According to Institute of Management
Accountants (IMA), management accountants have the expertise to provide high-quality
information because they have specialized skills in financial planning, analysis, control, decision
support, and professional ethics.

Managerial accountants are business leaders with management and financial skills.
They are very well perceived as they combine the perfect mix of accounting and management
(Chloe, 2023). In her article, she further emphasized that management accounting jobs are in
demand not only in the United States, but in many other countries around the world. The article
also resonated that there is a global shortage of management accountants. Due to the rapid
increase in the number of businesses, managerial accountants are more in demand in helping
businesses to thrive especially on tough economic period. According to the Bureau of Labor
Statistics (BLS), the job outlook for accountants and auditors is strong with an anticipated
growth rate of 4% between 2019 and 2029 globally. Accordingly, in an article published in
Wiley Efficient Learning website it is stated that a BSMA graduate is certified by global
professional management accounting organizations. Once you pass the licensure exam, you will
be a Certified Management Accountant (CMA).

BSMA graduates shall be categorized as belonging to Level 6 of the Philippine

Qualifications Framework and ASEAN Qualifications Framework and qualify to take
assessments leading to certifications in Management Accounting given by global professional
management accounting organizations (Velayo, 2022).

The Board of Accountancy recently released a statement regarding the shortage of

Accountants in the Philippines. Quiñanola, the BOA Chairman highlighted that accountants play
a crucial role in driving economic growth and that many businesses and agencies require more
accountants. Competent management accounting teams are critical for responding to this
changing environment in a way that instills confidence and helps organizations build strategies
for the new paradigm (Thomson, 2023). He added that management accountants will be at the
front and center of this trend.

The program Bachelor of Science in Management Accounting (BSMA) meets the

minimum requirements under CMO Number 28 s. 2017 Policies, Standards and Guidelines for
the Bachelor of Science in Management Accounting and complies with the most recent
competency framework of the International Education Standards (IES) issued by the
International Federation of Accountants (IFAC) (Velayo, 2022). The Commission on Higher
Education through Memorandum No. 28 describes management accounting as a profession that
involves partnering in management decision making, devising planning and performance
management systems, and providing expertise in financial accounting and control to assist
management in the formulation and implementation of an organization’s strategy.

Locally, the program of Bachelor of Science in Management Accounting is only

offered on selected Universities across the province of Negros Occidental. There is a challenge
on the part of students who aims to take the BSMA program especially on the accessibility of the
institution offering such program. On the other hand, as numerous business and even companies
are penetrating the local commerce pushing the demand for accounting related works to climb
higher.

Moreover, Binalbagan Catholic College has been a bastion of producing remarkable

graduates especially in accounting related programs. Accordingly, there is a spike in the number
of enrollees for the Academic Year 2023-2024 which leads to the overwhelming of enrollees
especially for Bachelor of Science in Business Administration and eventually triggered for the
limited slots available for the business and management related programs. Even those students
who were not qualified for the Bachelor of Science in Accountancy were inclined to enroll to
BSBA as the closest program are forced to transfer into another school.

Considering the aforementioned scenarios, the researcher intents to determine the

viability of offering Bachelor of Science in Management Accounting, an additional program in
Binalbagan Catholic College considering the management capability, marketability, financial
viability, and operational factors as viability indicators.

Statement of the Problem

This study aims to determine the viability of offering Bachelor of Science in

Management Accounting as an additional Program Offered by the Binalbagan Catholic College.
Specifically, this study sought to answer the following:

1. What is the marketability of BSMA program in terms of:

a. Demand for the Program

b. Demand for BSMA Graduates

2. What is the financial viability of offering BSMA program in Binalbagan Catholic College in
terms of:

a. Scholarship Availability

b. Tuition Fee

3. What is the management viability of offering BSMA program in Binalbagan Catholic College
in terms of:

a. Administration & Management

b. Faculty Qualifications

4. What is the Operational Viability of offering BSMA program in Binalbagan Catholic College

a. Compliance to legal requirements.

b. School facilities

c. School location

Framework of the Study

 The CHED Memorandum No. 28, s. of 2017 entitle Policies, Standards, and Guidelines
for the Bachelor of Science in Management Accounting (BSMA), specifically Sections 14-17 of
Article VI outlines the resources needed in offering the BSMA program. The needed resources
includes the management, faculty and facilities that will be utilized for the said program. In order
to determine the offering of BSMA program in the institution, various viability indicators shall
be formulated.

The word “viability” is a mass noun that means the ability or capacity of something to
work well. It could be a proposal, an idea, a project, or even a plan to change how a company
does business. Moreover, viability of a business is determined by a combination of various
factors including, but not limited to, market demand, competition, financial stability, operational
efficiency, and the quality of the management team. (QuestionPro.com).

A competent management team has the power to steer a business in the right direction,
make informed decisions and provide a positive work environment (Wright, 2023).
Marketability may apply to things or people. When it applies to people, we are talking about
making them attractive to potential employers or clients. People may study for a degree to
improve their marketability. This means that they believe that getting a degree improves their
chances of getting either a job or a better job. (Marketbuisnessnews.com). Assessing the
financial viability is crucial in deciding whether the project should proceed. (Gov.UK).
Operational viability means the ability to sustain a business (Living Classroom).

INPUT PROCESS OUTPUT

Viability Indicators: a. Administer

a. Management
b. Marketability
c. Financial Viability
d. Operational Viability
Viability of Offering
Questionnaires Bachelor of Science in
b. Organization of Management Accounting in
Binalbagan Catholic
Responses and Data College
c. Presentation of Data

Figure 1: Schematic Diagram of the Study

 In assessing the viability of the program, the researcher focuses on viability indicators
applicable to the offering of BSMA program. This includes the management viability,
marketability, financial viability, and operational factors. Accordingly, the information that
intents to satisfy the viability indicators will be gathered through questionnaires and will then be
presented to determine the viability of offering BSMA program in Binalbagan Catholic College.

Significance of the Study

This study will be beneficial to the School Administrator, Faculty and Staff, Parents,
Students, and to the Future Researchers.

School Administrators. The findings of this study will help the school administration to be able
to know relevant information to foresee the viability of offering the BSMA program in
Binalbagan Catholic College. This will be significant in their formulation of additional program
offering in the school.

Human Resource Office. This research will not just contribute in terms of BSMA related
aspect, but also an opportunity to assess on the level of capability and competence of its
personnel.

Parents. This research will help in easing the burden of finding an institution that offers an
accessible accountancy related program which parents often encountered when their children
approaches the tertiary level of education.

Student. Offering BSMA program in BCC is beneficial to those students who aims to take
accounting related program, most especially to those currently Senior High School students who
are considering the course and College students who have plans to shift to the said
program/course.

Future Researchers. This research will be an avenue for future researchers to refine and expand
their studies in relation to offering BSMA courses to colleges.

Scope and Limitations

 This study aims to assess the viability of offering Bachelor of Science in Accountancy in
Binalbagan Catholic College through viability indicators.

The study will be conducted in the Binalbagan Catholic College and to its nearby feeder
schools. Various offices of the institution will be the scope of the study. In order to satisfy the
need of the viability indicators the researcher will conduct a study which will include the Human
Resource Office is the target for the determination of management viability, Finance and
Property Office for the operational factors, and Accounting and Scholarship Office for the
financial viability. Moreover, a sample from the feeder schools of the institution will be the
scope of the study in terms of marketability as viability indicator.

The study will be limited to management viability, marketability, financial viability, and
operational factors as viability indicators on the viability of offering Bachelor of Science in
Management Accounting in Binalbagan Catholic College.

Definition of Terms

For a more comprehensive presentation of the study, the following salient terminologies were
presented in accordance with their conceptual and operational definitions.

Bachelor of Science in Management Accounting (BSMA). Conceptually, it is a degree

program that is designed to deliver accounting education to people who are interested to
build a career in the field of managerial accounting involving controllership and
specialized accountancy functions such as operational planning and budgeting, capital
budgeting and project planning, responsibility accounting, cost accounting, and cost-
benefit analysis, among others (LPU Davao, 2022).
Operationally, BSMA is the program that is the subject of the study in order to determine
its viability if offered in BCC.

Demand. The willingness of consumers to avail a product or service at different prices

(Tamplin, 2023).
Operationally, it pertains to the willingness and ability of the students to enroll in the
BSMA program of BCC.
Financial. This refers to monetary receipts and expenditures; pertaining or relating to money
matters (Collins Sons & Co. LTD., 2012).
Operationally, it refers to the monetary matters such as tuition fee and scholarship
availability in BCC in relation to offering the BSMA program.

Management. The administration of an organization, whether it is a business, a non-profit

organization, or a governing body. It involves the way the managing body takes
decisions, deals with employees, and interacts with the business environment
(Simplinotes, 2022). Operationally, it refers to the viability of the BCC management
when BSMA is offered.

Marketability. A measure of the ability of a security to be bought and sold. (If there is an
active marketplace for a security, it has good marketability. Marketability is similar to
liquidity, except that liquidity implies that the value of the security is preserved, whereas
marketability simply indicates that the security can be bought and sold easily.) (Payroll
Heaven,2021).
Operationally, the proposed new program’s perceived demand and desirability among the
target population.

Operational. The performance of a practical work or of something involving the practical

application of principles or processes (Merriam-Webster, n.d.).
Operationally, the operational factors that determines the viability of the new program.

Viability. This refers to the ability of a project to develop, succeed or feasible ( Meriam-
Webster).
Operationally, the quality of success of offering Bachelor of Science in Management
Accounting (BSMA) at Binalbagan Catholic College (BCC).