UNIVERSITY OF THE CORDILLERAS

Baguio City
COLLEGE OF ACCOUNTANCY
BACHELOR OF SCIENCE IN FINANCIAL AND MANAGEMENT ACCOUNTING
Course Syllabus
COURSE CODE:
COURSE NAME:

MS 1
MANAGERIAL ACCOUNTING

COURSE DESCRIPTION:

The course is a 6-unit course, which covers the basic consideration in Management Advisory Services (MAS); how
and when it is required. It provides students a board description of the nature of management services, how they arte
conducted, what specific techniques may be applied. Management Advisory Services can be described as the function
of providing professional advisory (consulting) services, the primary purpose of which is to improve the client's use of
it's capabilities and resources to achieve the objectives of the organization.

PLACEMENT:
CREDIT:
PREREQUISITE:

Third Year, First Trimester

6 units (2 Hours and 50 minutes Lecture three times a week)
Financial Accounting Part 2 (Acctg. 8/9), FMA 1 (Cost Accounting)

GENERAL OBJECTIVES: At the end of the course, the student shall be able to:
CO#

Description

PO
1
3

PO
2
3

PO
3
3

PO
4
3

PO
5
3

PO
6
3

PO7

CO1

Analyze and solve problems as follows:

a.
Ascertain the pertinent facts and circumstances;
b.
Seek and identify problem objectives;
c.
Define problem or opportunities for improvement; and
d.
Evaluate and determine possible solutions or alternatives.

CO2

Prepare special financial statements and reports and conduct an in-depth analysis
and interpretations of the results of operations and financial condition of an
enterprise.

CO3

Analyze transactions and realize that accounting process is not static, but progressive
which must respond to changes in economic, political and social environment.

UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1

COURSE CONTENT:
Objectives

Topics

1. Explain the basic consideration in

Management Advisory Services.
2. Identify qualifications needed in
Management Advisory Services
Consultants.
3. Differentiate Managerial Accounting
from Financial Accounting.
4. Describe the nature, scope, objectives
and responsibility of management
accounting.
5. Differentiate controllership and
treasurership.

UNIT 1 Introduction to Management

Advisory Services: Entering the New
Field in Management Accounting

1. Identify the basic financial statements

and explain its contents.
2. Explain the basic objectives of
analyzing financial statements.
3. Describe the general approaches in
financial statement analysis.
4. Enumerate the steps in financial
statement analysis.
5. Explain the limitations of financial
statement analysis.
6. Evaluate and Interpret financial ratios
in evaluating the companys financial
UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1

Topics:
1. Management Advisory Services
defined/scope/characteristics
2. Professional qualifications ion the
practice of Management Advisory
Services
3. Certified Public Accountants (CPAs)
as Consultants
4. Management Advisory Services
Practice Standards
5. Stages of Management Advisory
Services Engagement
6. Management Advisory Services
Proposal Letter
7. Managerial Accounting and
Financial Accounting Distinguished
8. Management Accounting and the
Business Environment
UNIT 2 Understanding Financial
Statements: The Business
Communication medium
Topics:
1. Financial Statements (Balance
Sheet, Income Statement, Retained
earnings, Cash Flow, Notes to
Financial statements)
2. Financial Statement Analysis 1 and
2
3. Cash Flow Statement Analysis

Number
of
Meeting
s
1 meeting

2
meetings

Gradin
g
Period

Teacher
Learning
Activities

Assessment Tools

Prelims

Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense

Paper and Pen

Checklist
Interview Guide
Rubric

Prelims

Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case

Paper and Pen

Checklist
Interview Guide
Rubric

position and operation performance.

7. Determine the factors that affect
gross profit and apply the methods of
analyzing gross profit variation.

4. Gross Profit Analysis

5. Earnings per share determination.

1. Explain the nature of cost.

2. Identify and explain how the various
classifications of costs.
3. Describe and explain how costs are
presented on the financial statements of
manufacturing, merchandising and
service oriented companies.
4. State and illustrate the importance of
understanding cost behavior.
5. Differentiate Job Order costing,
Process Costing and Activity Based
Costing

UNIT 3 Cost Concepts,

Classification, Behavior and
Applications: Basic foundation of
Management Accounting

1. Describe a centralized from a

decentralized type of organization.
2. Explain the importance of a
decentralized in a responsibility
accounting.
3. Describe the different types of
responsibility centers.
4. Evaluate performance of a profit, cost,
investment or revenue center.
5.Define transfer pricing and discuss the
needs in a decentralized organization
6. Explain the general approaches in
setting transfer prices.

1. Differentiate Variable Costing from

UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1

2
meetings

Prelims

UNIT 4
Decentralized Operations
and Responsibility Accounting
System and Transfer Pricing
Topics:
1. Nature of Decentralized operations
2. Advantages of Decentralization
3. Concepts, Objectives and
Advantages of Responsibility
Accounting
4. Cost centers, Profit centers,
Investment Centers and Revenue
Centers
5. Segment Reporting
6. Rationale and definition of Pricing
7. Discuss the need for transfer price
8. Alternative transfer pricing
schemes

2
meetings

Prelims

UNIT 5 Variable (Direct) Costing: A

Prelims

Topics:
1. Cost concepts and classifications
2. Cost behavior: Analysis and use
3. Systems design: Job Order
costing, 4. Process Costing and
Activity Based Costing

Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense
Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense
Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense
Lecture,

Paper and Pen

Checklist
Interview Guide
Rubric

Paper and Pen

Checklist
Interview Guide
Rubric

Paper and Pen

Absorption Costing;
2. Prepare income statements under
variable and absorption costing methods

1. Apply the different formulas in Breakeven Point Analysis

2. Identify the different type of cost
used in Break-even Point Analysis

1. Identify all the composition of a

master budget
2. Construct all the different budgets
UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1

Precision Gem in the Treasures of

Management
Topics:
1. Nature of Variable Costing and
Absorption Costing
2. Variable Costing and Absorption
Costing Distinguished
3. Advantages and disadvantages of
Variable Costing
4. A balanced sales and production
Sales and production out of balanced
5. Preparation of income statement
under variable and Absorption
Costing.
6. Comparison and reconciliation of
net income under variable and
absorption costing
UNIT 6 Break-even Analysis: An
Indispensable Management DecisionMaking Tool.
Topics:
1. Definition, Nature, Scope
2. Variable Costs, Fixed Costs &
Contribution Margin
3. Margin of Safety
4. Mix (Composite) Break-even.

meetings

2
meetings

Prelim Examinations (1 meeting)

UNIT 7 Budgeting: An Indispensable
5
Instrument for Business Survival
meetings
Topics:
1. Definition, nature, scope

Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense

Checklist
Interview Guide
Rubric

Prelims

Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense

Paper and Pen

Checklist
Interview Guide
Rubric

Midterm
s

Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,

Paper and Pen

Checklist
Interview Guide
Rubric

covered by the master budget.

2. Budget defined/types and uses of

budget
3. Composition of a master budget
4. Steps in budget preparation
5. Detailed illustration of each of the
components of the master budget
through problem-solving

1. State the essential ideas that in

standard costing, costs and inventory
amounts are recorded at what cost
should have been rather that what
actually were; and
2. Analyze materials price/quantity
variances, labor rate/efficiency
variances and factory Overhead
variances under fixed and flexible
budgets.

UNIT 8 Standard Costing: The Ladder

to Attain Business
Topics:
1. Basis of setting standards
2. Analysis of Materials cost variance
Material Quantity Variance
Material Price Variance
3. Analysis of Labor Cost variance
Labor Efficiency Variances under
the fixed budget
Labor Rate variance
4. Analysis of Factory Overhead
Variances under the fixed budget
Two-variance method
Three-variance method
5. Analysis of Factory Overhead
under the flexible budget
Two-variance method
Three-variance method
Four-variance method
Material mix variance

1. Describe the decision making process.

2. Distinguish between relevant and
irrelevant cost in decision-making
purposes.
3. Apply incremental and total analysis
UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1

7
meetings

Midterm examinations ( 1 meeting)

UNIT 9 Relevant Revenue, Costing
5
and Decision Making: A Tool Financial meetings
Managers Use
Topics:
1. Decision making process

Midterm
s

Finals

Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense
Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense

Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team

Paper and Pen

Checklist
Interview Guide
Rubric

Paper and Pen

Checklist
Interview Guide
Rubric

approach in decision making purposes.

2. Identifying relevant costs

3. Types of decisions
Make or buy
Add or drop a product or other
segment
Sell now or process further
Utilization of scarce resources
Shut-down or continue operations
Pricing

1. Present Annual budget for capital

investment;
2. Asses funding capacities; and
3. Evaluate the allocation of resources to
renewal and expansion projects with
most clearly Conform with the
company's priorities.

Unit 10 Capital Budgeting: The Road

Map to Growth in Business

Topics:
1. Definition, nature and scope
2. Characteristics of Capital
Budgeting
3. Factors to consider in evaluating
capital expenditures
Net investment
Net returns
The lowest acceptable rate of
return
4. Techniques used in analyzing
capital expenditures
5. Methods, which do not consider
the time value of money.
a. Payback Period
b. Accounting rate of return
c. Methods which consider the time
value of money
d. Net present value
e. discounted rate of return
f. profitability index
g. discounted payback period
Final Examinations ( 1 meeting)

TEACHING-LEARNING ACTIVITIES (TLA):

UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1

6
meetings

Finals

Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense
Lecture,
Peer-Assisted,
Teacher-Assisted,
Active/Mock
Review,
Peer/Team
Teaching/Sharing
Problem-Based
Learning
Experiential
Task
Analysis/Conceptua
l Analysis/ Case
Study
Writing ExpositionWorksheet
Oral ExpositionsReporting, Defense

Paper and Pen

Checklist
Interview Guide
Rubric

TLA
Lecture (L)
Problem-solving (PS)
Case Analysis (CA)
Group works (GW)
Illustrative Problem Analysis (IPA)
Class discussions (CD)
Topic Synthesis (TS)

CO1
10 %
20 %
20 %
15 %
20 %
10 %
5%

CO2
10 %
20 %
20 %
15 %
20 %
10 %
5%

CO3
10 %
20 %
20 %
15 %
20 %
10 %
5%

ASSESSMEN TOOLS (AT):

AT
Quizzes (Q)
Case Presentation (CP)
Seatwork (S)
Assignments (A)
Examination (E)
Recitations (R)
COMPUTATION OF SCORES:
Prelims:
Prelim Grade
=
Midterms:
Raw Midterm Grade
Midterm Grade
=

10% SW/A + 40% QUIZ + 50% EXAM

=
10% SW/A + 40% QUIZ + 50% EXAM
50% Prelim Grade + 50% Midterm Raw Score

Finals:
Raw Final Grade
Final Grade

=
=

10% SW/A + 40% QUIZ + 50% EXAM

50% Midterm Grade + 50% Raw Final Grade

Note: For BSA students, retention grade is 85.

REFERENCES:
A. Textbook:
UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1

CO1
40 %
4%
2%
2%
50 %
2%

CO2
40 %
4%
2%
2%
50 %
2%

CO3
40 %
4%
2%
2%
50 %
2%

Cabrera, Elenita Balatbat, Management Advisory Services- Management Accounting Concept and Application, 2011
B. Books:
Agamata, F. T (2010). Management advisory services: a comprehensive guide
(2010 ed.) Manila: GIC Enterprises AcL 658.
1511 G193 2006
Agamata, F. T. (2008) Reviewer in Management Advisory Services (2008 ed.) Manila: GIC Enterprises
AcL 658. 1511076 R685
2005
Berry, Leonard . Management Accounting. Mc Graw Hill Co. (2009) (Acl 658.1511 B459 2009)
Brewer, Peter C, Garrison, R. Noreen, E. Introduction to Managerial Accounting. Mc Graw Hill. (2008) (Acl 658.1511 B758 2008)
Edmonds, Thomas P., Edmonds, Cindy D, et al.. Fundamental Financial and Management Concepts. (2007) ( Acl 658.1511 E952 2007)
Garrison, R. H., Noreen, E. W., Brewer, P. C. (2009). Managerial accounting (11 th ed.)Boston: McGraw/ Irwin.
Hilton, Ronald W. Managerial Accounting. Mc. Graw Hill Co. (2007) (Acl 658.1511 H567 2007)
Roque, R. S. (2005). Reviewer in management advisory services (2007 ed.) Malabon City: Roque Press.
AcL 658. 1511 W251
2007

Warren, Carl S., Reeve, James and Philip Fess. Managerial Accounting. Thompson, Southwestern. 8 th edition. 2009 (Acl 658.1511

W251 2009)

Warren, C. S., Reeve, J. M. (2007). Managerial accounting (9 th ed.) Australia: Thomson/ South-Western. AcL 658. 1511 Ag14 2007
Williams, Jan R., Haka and Bettnes. Financial Managerial Accounting (Ac. 657.48 W673 2007)
Acl 658.1511076 Ag14 2008

C. Online References
www.auburn.com;
www.elearners.com;
www.databasics.com;
www.neiu.edu.
www.maaw.infor/relevantcostingarticles.htm.
Prepared by:

Evaluated by:

Approved by:

Noted by:

SIEGFRIED M. ERORITA, CPA, Ph.D .

JASMIN MAY P. BANIAGA, CPA, MBA
CRISTINA G. GALLATO,CPA, Ed.D
CLEOFAS M. BASAEN, Ed. D
Instructor
Department Head
Dean
Vice President for Academic Affairs

UC-VPAA-COA-SYL-53
September 17, 2012.Rev.1