MANAGERIAL ACCOUNTING (GSMANAC) FACULTY: …...Understanding Financial Statements...

SCHOOL OF BUSINESS AND ACCOUNTANCY

HOLY ANGEL UNIVERSITY Graduate School of Business

Master of Business Management

COURSE OUTLINE: MANAGERIAL ACCOUNTING (GSMANAC) FACULTY: DR. NELSON J. ABESAMIS, CPA 3rd Trimester, SY 2016-2017 Holy Angel University Vision, Mission, Core Values and Strategic Objectives Vision: To become a role-model catalyst for countryside development and one of the most influential, best-managed Catholic universities in the Asia-Pacific region. Mission: To offer accessible quality education that transforms students into persons of conscience, competence, and compassion. Core Values: Christ-Centeredness, Integrity, Excellence, Community, and Societal Responsibility Strategic Objectives:

1. Academic Quality and Organizational Excellence 2. Authentic Instrument for Countryside Development 3. Great University to Work for 4. Faithful Catholic Education

Graduate School of Business VMGOs Vision Statement

A premiere graduate business education in the Asia-Pacific Region dedicated to helping professional, entrepreneurs and public servants become competent and socially responsible leaders and to contribute to countryside development.

Mission

To provide advanced and high quality business education in the field of management, accountancy, entrepreneurship, public governance and hospitality to professionals and leaders through a wide range of relevant, educational experience.

Goal

To provide our sincerest service to our graduate students as we are committed to the shared ideals of integrity, excellence, community service and societal responsibility.

GSB Strategic Objectives

1. To offer programs which are more relevant and responsive to the shifting needs of the real world. 2. To promote practitioner-research oriented that will allow us to participate in the furtherance of knowledge and elevate our

GSB programs to higher level of excellence. 3. To forge and maintain strategic functional linkages and/or partnership with academic institutions, relevant organizations,

national government agencies and local government units for knowledge transfer, sharing of resources and advocacy training for public service.

4. To act as reputable workplace preferred by faculty members who are experts in their corresponding fields and proficient in interdisciplinary and multi-disciplinary approaches in teaching.

5. To foster culture that promotes integrity, innovation, and the highest ethical standards in the Catholic context. MBM Program Educational Objectives

1. Students will be able to apply quantitative and qualitative research in the solution of business problem. 2. Students will be able to integrate interdisciplinary and multidisciplinary perspectives in approaching management problems, issues and concerns. 3. Students will be able to apply business analytical tools in solving problems arising in corporate finance and management. 4. Students will be able to distinguish the strategic dimensions of total quality management in the manufacturing, service and other industry related businesses. 5. Students will be able to judge whether business practices conform to the ethical standards in business.

HAU Strategic Objectives GSB Strategic Objectives MBM

Program Educational Objectives

Institutional Students’ Learning Outcomes

1. Academic Quality and Organizational Excellence

1. To offer programs that are more relevant and responsive to the shifting needs of the real world.

#1, #2, #3 and #4 Civic and Global Learning

Applied and Collaborative Learning

Critical and Creative Thinking

2. Authentic Instrument for Countryside Development

2. To promote practitioner-research oriented that will allow us to participate in the furtherance of knowledge and


Applied and

elevate our GSB programs to higher level of excellence.

Collaborative Learning

Critical and Creative Thinking

3. To forge and maintain strategic functional linkages and/or partnership with academic institutions, relevant organizations, national government agencies and local government units for knowledge transfer, sharing of resources and advocacy training for public service.


Applied and Collaborative Learning

Communication and Interpersonal Skills

3. Great University to Work For

4. To act as reputable workplace preferred by faculty members who are experts in their corresponding fields and proficient in interdisciplinary and multi-disciplinary approaches in teaching.

#5 Communication and Interpersonal Skills

Valuing and Ethical Reasoning

4. Faithful Catholic Education 5. To foster culture that promotes integrity, innovation, and the highest ethical standards in the Catholic context.

#5 Valuing and Ethical Reasoning

Communication and Interpersonal Skills

Course Learning Outcomes At the end of the course, the students must be able to: 1. Explain the objectives, scope, role and the direction of management accounting. 2. Interpret financial statements as to horizontal, trends, common size statements, financial ratios and cash flows analyses 3. Apply concepts in computing for costs associated with products and decision making 4. Apply management accounting concepts in preparing reports and decisions for management 5. Comprehend the concepts, approaches and techniques in relevant costing to make decisions. 6. Evaluate the acceptance of capital investment decisions 7. Prepare a segment income statement by divisions with profitability analysis

8. Interpret company’s performance using the advanced management control and measures Course Description Acquaint students with the role of the accountant in the management team in providing and

assisting in the analysis, interpretation and forecasting of business organizations. It focuses on the objectives, scope, foundation, techniques of management accounting for planning and control. Students are expected to demonstrate ethical behavior and skills in preparing and analyzing accounting data as applied in a wide range of planning, control and decision making decisions.

Number of Units 3 units Required Textbook/Materials Cabrera(2014), Management Accounting Concepts and Applications, GIC Enterprises Other Resources/References

Bhimani, et al, (2012) Introduction to Management Accounting, Pearson Education Limited Brewer et al, (2016) Introduction to Managerial Accounting (7 th edition), McGraw-Hill Education Braun, Karen Wilken (et al) (2015). Managerial accounting 4th ed. Pearson Education, Boston. Brewer. (2016). Introduction to managerial accounting. McGraw-Hill Education. Cabrera, Ma. Elenita B. (2014). Management accounting: concepts and applications 2014 ed. GIC Enterprises, Manila. Crosson, Susan (et al) (2014). Managerial accounting 10th ed. South-Western, Cengage Learning, Australia. Drury (2013) Management Accounting for Business (Fifth Edition), CENGAGE Learning Mowen et al, (2014) Cornerstones of Managerial Accounting – International Edition (5th edition), South-Western CENGAGE Learning. Needles, Belverd (et al) (2014). Financial & managerial accounting 10th ed. South-Western, Cengage Learning, Australia. Noreen. (2014). Managerial accounting for managers. McGraw-Hill Education. Roque (2016) Reviewer in Management Advisory Services, GIC Enterprises Inc. Warren. (2014). Managerial accounting. Cengage Learning

EBOOKS Agrawal, 2010, Principles of Management Accounting, Asian Books Accessed through: http://site.ebrary.com/lib/haulib/detail.action?docID=10416921&p00=managerial+accounting Arora, 2009, Management Accounting : Theory, Problems and Solutions, Himalaya Publishing House

Accessed through: http://site.ebrary.com/lib/haulib/detail.action?docID=10415102&p00=managerial+accounting

Lee, 2013, Advances in Management Accounting, Emerald Group Publishing Limited; Bradford,

GB

Websites Harris, J., & Durden, C. (2012). Management accounting research: An analysis of recent

themes and directions for the future. Journal of Applied Management Accounting Research, 10(2), 21-41. Retrieved from http://search.proquest.com/docview/1366365802?accountid=148769

http://mafundamentals.blogspot.com/ van, d. S. (2014). The emergence and change of management accounting routines. Accounting, Auditing & Accountability Journal, 24(4), 502-547. doi:http://dx.doi.org/10.1108/09513571111133072

Requirements

There will be two (2) major examinations for the entire trimester, a mid-term exam and a final exam. Quizzes, active participation, and assignments shall also be required to evaluate student performance based on the assigned chapters, lectures and readings. Students shall be required to submit written case studies and do oral presentation to evaluate how well they could apply management principles. Students will also be required to participate in different activities, and submit projects and other written output related to the topic.

V. Learning Outline

Week No.

Learning Outcomes

Topics Methodology Student Output Evaluation of

Learning Assessment

Week 1

At the end of the topic, the student will be able to:

1. Explain the relevance of the subject in achieving the program learning outcomes.

XMGRAC1 course outcomes Relevance of the course in achieving the program learning outcomes. Classroom policies

Attendance

Interactive discussion

http://site.ebrary.com/lib/haulib/detail.action?docID=10415102&p00=managerial+accounting

http://mafundamentals.blogspot.com/

2. Explain the relevance of the subject in achieving the course learning outcomes.

3. Explain the significance of complying with classroom policies.

Assignment Mini term paper Quizzes and major

examinations Reaction papers Subject final

requirement Grading System Academic Dishonesty

Week 1

1. Describe the objective, scope and relationship with financial accounting

2. Discuss the activities of management accountant, operations processes, organizational structure of the management accounting, Institute of Management Accountants and Philippine Association of Management Accountants

3. Compare and contrast the functions of the chief financial officer, treasury and controllership.

4. Discuss the code of conducts expected to be applied and adopted by the management accountants.

OBJECTIVES , SCOPE, ROLE AND DIRECTION OF MANAGEMENT ACCOUNTING Management Accounting:

An Overview Definition, objectives,

scope and relationship with Financial Accounting

Activities of management accountant

Operations processes Organizational structure

and the management accountant

The Chief Financial Officer and the Controller

Professional Ethics Code of conduct for

management accountants Company codes of

conduct Typical ethical challenges

Lecture/Class discussion

Textbook assignments


Quiz Recitation Media-

supported Brainstorming

Answer the questions for oral examination

Answer the

questions for written examination

Answer the

question for problem solving

Submission of

case readings

Students to explain in class their answers to the discussion questions

Students must obtain a score of, at least, 85% in the quiz in order to pass

Students must obtain a score of, at least, 85% in recitation in order to pass

Students must obtain a score or at least 85% in case analysis in order to pass

Week 1 1. Discuss the expanding

role of management accounting, changing

Management Accounting and the Business Environment Expanding Role of


Textbook

Answer the questions for oral

Students to explain in class their

world of management accountant and current focus of management accounting

2. Determine the relevant application of the contemporary management techniques in solving

Management Accounting Contemporary

Management Techniques The Changing World of

Management Accountant Current Focus of

Management Accounting

assignments Interactive

discussion Quiz Recitation Media-

supported Brainstorming Newspaper

clippings on the business environments

examination Answer the


Answer the


answers to the discussion questions



Week 2

1. Identify the basic financial statements

2. Explain the contents of the different financial statements, objectives of financial statements analyses, general approach to financial statements analyses, steps in financial statements analysis and limitations of financial statements analysis

3. Apply the different methods of analyzing financial statements such as horizontal, trends, common size statements and financial ratios

4. Classify transactions either as operating, investing or financing

FOUNDATION OF MANAGEMENT ACCOUNTING

Understanding Financial

Statements Challenges and obstacles

confronting the users of financial statements

Financial statement analysis

Objectives of financial statements analysis

Methods of analyzing financial statements

Cash flows analysis Procedures in preparing

the statement of cash flows





supported Brainstorming Case

Presentations Problem

solving


Answer the


Answer the


Submission of

case readings




Students must obtain

activities. 5. Prepare the statement

of cash flows using both the direct and indirect methods

a score or at least 85% in case analysis in order to pass

Week 2-3

1. Discuss the basic cost management concept including the nature and classifications of costs

2. Determine cost of product using either variable or absorption costing

3. Prepare income statements using both variable and absorption costing

4. Reconcile the difference in income in using variable costing and absorption costing

5. Differentiate costs whether fixed, variable or mixed costs

6. Separate mixed costs into fixed or variable using high-low method, regression analysis, least square method or scattergraph

7. Compute for the breakeven point in units and in peso sales value

COST CONCEPTS AND APPLICATIONS Basic Cost Management Concept

Nature of cost, cost pools, cost objects and cost drivers

Classification of costs Variable costing

Definition of variable costing

Underlying concept Advantages and

disadvantages of using variable costing

Absorption costing Comparison between

variable costing and absorption costing

Reconciliation of net income using variable costing and absorption costing

Cost estimation

Definition of cost behavior

Importance of understanding cost behavior

Types of cost behavior patterns

Costs estimation





supported Brainstorming Problem

solving Case

presentation


Answer the


Answer the






Cost-Volume Profit Relationship

Basics and significance of CVP

CVP analysis for breakeven planning and revenue and cost planning

Breakeven and profit-volume graph\

Margin of safety and operating leverage

Gross Profit Variation MIDTERM EXAMINATION

Week 3

1. Identify the prerequisites to initiate and maintain an effective responsibility accounting system

2. Evaluate the performance of a responsibility center including segment margin

3. Compute transfer price using the various approaches

MANAGEMENT ACCOUNTING CONCEPTS AND TECHNIQUES FOR PLANNING, CONTROL AND DECISION MAKING

Responsibility accounting and transfer pricing

Decentralization in a responsibility accounting systems

Basic concepts of responsibility accounting

Definition, objectives and advantages of responsibility accounting

Responsibility centers Transfer pricing Distress pricing






solving


Answer the


Answer the





Week 4

1. Describe the functions, purposes, types, advantages and limitations of budgets

2. Prepare cash budgets

FUNCTIONAL AND ACTIVITY BASED BUDGETING Definition of budgets Difference between




Students to explain in class their answers to

and income statement budgets, with schedules of other budgets

planning and control Functions and types of

budgets Purposes of budgets Advantages and limitations

of budgets The budget period Steps in developing a

master budget • Fixed and flexible

budgeting


Quiz Problem-

solving Recitation Media-


Answer the


Answer the


the discussion questions



Week 4

1. Explain the process of setting standard costs

2. Compute and analyze the variances for actual and standard costs

STANDARD COST AND OPERATING PERFORMANCE MEASURES Rationale of standard

costs Users and benefits of

standard costs Setting standards Operating performance

evaluation Variance analysis





supported Problem

solving Brainstorming


Answer the


Answer the





Week 4-5 5. Differentiate analysis using full approach and

MANAGEMENT ACCOUNTING CONCEPTS


Answer the questions for

Students to explain in

relevant costing approach.

6. Prepare an analysis using relevant costing approach in determining whether Make or Buy, Add or Drop a Product Line or Other Segments, Sell Now or Process Further, Special Sales Pricing, Utilization of Scarce Resources, Shutdown or Continue Operations, Pricing, Target costing, Scrap or Rework a Defective Unit, Indifference Point.

AND TECHNIQUES FOR DECISION MAKING

Relevant Cost for Decision

Making The Decision Making

Process Identifying Relevant costs Approaches in Analyzing

Alternatives in Non-Routine Decision Making

Types of Decisions Make or Buy Add or Drop a Product

Line or Other Segments Sell Now or Process

Further Special Sales Pricing Utilization of Scarce

Resources Shutdown or Continue

Operations Pricing Target costing Scrap or Rework a

Defective Unit Indifference Point



Quiz Recitation Problem

solving Case analysis Media-


oral examination

Answer the


Answer the


Submission of

case readings

class their answers to the discussion questions




Week 5

1. Identify the variables and elements included in determination of the cost of capital investments

2. Compute the initial investment, annual net cash returns or savings of an investment proposal

3. Apply the techniques in evaluating capital investments

CAPITAL BUDGETING Define capital Budgeting Characteristics of a Capital

Investment Decision Elements of Capital

Budgeting Process of Capital

Budgeting Categories of Project Cash

Flows Methods of Evaluating

Capital Investment Projects






solving


Answer the


Answer the




Ranking of Investment Proposals

Comparing Preference Rates

Optimal Capital Budget


Week 5

1. Explain the objectives, contents and uses of business planning

2. Describe the development of business plans to meet agreed objectives

3. Enumerate the segments of a business plan

4. Determine the traceable and common fixed costs of a segment report

5. Discuss the nature and perspectives of the balanced score card

6. Compute the delivery cycle time, the throughput time, and the manufacturing cycle efficiency

Business Planning

Objectives and Uses of a Business Plan

Distinction between a Business Plan and a Strategic Plan

Development of Business Plans to Meet Agreed Objectives.

Segments of a Business plan

Contents of a Business Plan

Strategic Planning

Balanced Scorecard

Nature of the Balanced Score card

Perspectives of the Balanced Scorecard

Financial Perspective Customer Perspective Internal Business Process

Perspective Learning & Growth

Perspective Aligning the Balanced

Scorecard to Strategy Features of a Good

Balanced Scorecard Pitfalls When




Quiz Recitation Problem

solving Case analysis Media-



Answer the


Answer the


Submission of

case readings





Implementing a Balanced Scorecard

Success of a Strategy FINAL EXAMINATION

Expectations from Students Students are held responsible for meeting the standards of performance established for each course. Their performance and compliance with other course requirements are the bases for passing or failing in each course, subject to the rules of the University. The students are expected to take all examinations on the date scheduled, read the assigned topics prior to class, submit and comply with all the requirements of the subject as scheduled, attend each class on time and participate actively in the discussions. Furthermore, assignments such as reports, reaction papers and the like shall be submitted on the set deadline as scheduled by the faculty. Extension of submission is approved for students with valid reasons like death in the family, hospitalization and other unforeseen events. Hence, certificates are needed for official documentation. Likewise, special major examination is given to students with the same reasons above. Attendance shall be checked every meeting. Students shall be expected to be punctual in their classes. And observance of classroom decorum is hereby required as prescribed by student’s handbook. Academic Dishonesty It is the mission of the University to train its students in the highest levels of professionalism and integrity. In support of this, academic integrity is highly valued and violations are considered serious offenses. Examples of violations of academic integrity include, but are not limited to, the following: 1.Plagiarism – using ideas, data or language of another without specific or proper acknowledgment. Example: Copying text from the Web site without quoting or properly citing the page URL, using crib sheet during examination. For a clear description of what constitutes plagiarism as well as strategies for avoiding it, students may refer to the Writing Tutorial Services web site at Indiana University using the following link: http://www.indiana.edu/~wts/pamhlets.shtml. For citation styles, students may refer to http://www.uwsp.edu/psych/apa4b.htm. 2. Cheating – using or attempting to use unauthorized assistance, materials, or study aids during examination or other academic work. Examples: using a cheat sheet in a quiz or exam, altering a grade exam and resubmitting it for a better grade. 3. Fabrication – submitting contrived or improperly altered information in any academic requirements. Examples: making up data for a research project, changing data to bias its interpretation, citing nonexistent articles, contriving sources. (Reference: Code of Academic Integrity and Charter of the Student Disciplinary System of the University of Pennsylvania at http://www.vpul.upenn.edu/osl/acadint.html). Policy on Absences

http://www.vpul.upenn.edu/osl/acadint.html

1. A student who incurs two (2) absences in any subject shall be given a mark of “FA” as his final rating for the trimester, regardless of his performance in the class.

2. Attendance is counted from the first official day of regular classes regardless of the date of enrolment.

Grading System (Campus ++): Grading System. Student Catalogue (2011), Graduate School, Holy Angel University) Grades Percentage Grade General Classification 1.0 97 – above Outstanding 1.25 94 – 96 Excellent 1.50 91 – 93 Superior 1.75 88 – 90 Very Good 2.00 85 – 87 Good 5.00 Below 85 Failed 6.00 FA Failure Due to Absences 8.00 UW Unauthorized Withdrawal 9.00 DRP Dropped with Permission Assessment Criteria for Written examination Grades Percentage Grade General Classification 1.0 97 – above Outstanding 1.25 94 – 96 Excellent 1.50 91 – 93 Superior 1.75 88 – 90 Very Good 2.00 85 – 87 Good

MANAGERIAL ACCOUNTING (GSMANAC) FACULTY: …...Understanding Financial Statements...

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