Management Accounting
Management Accounting
COURSE SYLLABUS
Management Accounting (MBM 115)
Vision: An effective instrument in establishing high quality graduate studies in business that meet the needs and demands of the new world economic order in
the third millennium and onward.
Mission: We, at the Graduate School in Business and Management are committed to provide quintessential advance and integrated business and risk
management education to provide effective and competent business managers to propel the business and economic communities of the country.
Objectives: The dynamic environmental changes taking place in the national as well as global communities demand that administrators must be developmental
and enterprising in their thinking and training. Toward this end, the PLMar Graduate School through its Graduate Programs, aims to:
1. Train administrators and potential administrators to make relevant decisions based on the applications of theories and concepts in administration of
development and business management viewed in macro and micro levels from national and supra natural perspectives employing multi-disciplinary
approaches; and,
2. Develop executives to become prominent leaders in business and management in government and non-government organizations, church- related
and social institutions, and other entities.
The Master in Management program shall aims to produce graduates possessing the following, the ability to:
a. Articulate and discuss the latest administration and business developmental approaches and good practices;
b. Act in recognition of professional, social, and ethical responsibilities for the fastest emerging developing environment ;
c. Apply the knowledge, skills and wisdom as an appropriate for the specialization to the abstract models, defined problems and requirements for
the globally challenging and competitive world;
d. Function effectively as a global-leader in diverse environment with a multi-disciplinary settings;
e. Understand and commit to professional ethics, responsibilities, and norms of professional innovative practice;
i. Understand the impact of new society order solutions in a global, economic, environmental, and societal context;
j. Recognize/ Realize and Actualize the life-long learning in the field of academe through innovative approaches and beyond;
k. Apply techniques, skills, knowledge and wisdom to the modern innovative complex world practice.
COURSE DESCRIPTION: This course (Management Accounting) introduces learners to the vital role that management accounting information plays in
organizations. It also introduces learners to elements of management accounting which are used to make and support decisions. It starts
by introducing the nature, the source and purpose of management information followed by the statistical techniques used to analyze
data. Then the syllabus addresses cost accounting and the costing techniques used in business which are essential for any management
accountant. The syllabus then looks at the preparation and use of budgeting and standard costing and variance analysis as essential tools
for planning and controlling business activities. The syllabus concludes with an introduction to measuring and monitoring the
performance of an organization where management cases, to some extent, shall be given to learners.
In today’s competitive environment, management accounting information has moved from its traditional score-keeping role to a more
attention-getting, problem-solving, and even strategic planning and implementation role. Learners get to appreciate how management
accountants become a critical member of the top management team. As a course intended for Master in Management, it will take a
more quantitative approach in presenting and analyzing the concepts.
Overall, the course aims to develop knowledge and understanding of management accounting techniques to support management in
planning, controlling and monitoring performance in a variety of business contexts.
OBJECTIVES/VALUES:
COURSE OUTLINE:
Teaching-
Teaching-
Learning Learning
Learning
Week Specific Learning Outcome (SLO) Learning Content (LC) Assessment Resources
Activities
Tools (LAT) and References
(TLA)
(TLR)
University Student
Manual
Course Outline/ embedded
Outline the detailed requirements of the course
1 learning room (traditional
(Course Introduction) Course
and virtual class ) Modular
Syllabus/Scope &
Approaches
Sequence Grid
2 A. The Nature, Source and Group Submission of References /
Purpose of Management discussion in Reports, and Suggested
Information. structured Case Study / Readings and the
classroom Analysis provided Syllabus
At the end of the lesson, the learner should be able to:
1. Accounting Management Guides/Modules
a) Describe the purpose and role of cost and management
accounting within an organization.[K]
b) Compare and contrast financial accounting with cost and
management accounting.[K]
c) Outline the managerial processes of planning, decision
Page 4 of 19
At the end of the lesson, the learner should be able to: 2. Sources of data
At the end of the lesson, the learner should be able to: 4. Presenting Information
At the end of the lesson, the learner should be able to: 1. Sampling Method
3. Summarizing and
Analyzing Data
At the end of the lesson, the learner should be able to:
8 At the end of the lesson, the learner should be able to: 2. Absorption and -do- -do- -do-
Marginal Costing
At the end of the lesson, the learner should be able to: 3. Cost Accounting Method
b) Process costing
Page 10 of 19
c) Service/operation costing
9 At the end of the lesson, the learner should be able to: 4. Alternative Cost -do- -do- -do-
Accounting
a) Explain activity based costing (ABC), target costing, life
Page 11 of 19
At the end of the lesson, the learner should be able to: 1. Nature and Purpose of
Budgeting
a) Explain why organizations use budgeting.[K]
b) Describe the planning and control cycle in an organization.
[K]
c) Explain the administrative procedures used in the
budgeting process.
d) Describe the stages in the budgeting process (including
sources of relevant data, planning and agreeing draft budgets
and purpose of forecasts and how they link to budgeting).[K
At the end of the lesson, the learner should be able to: 2. Budget Preparation
At the end of the lesson, the learner should be able to: 3. Flexible Budgets
would be appropriate.[S]
d) Flex a budget to a given level of volume.[S]
11 At the end of the lesson, the learner should be able to: 4. Capital Budgeting and -do- -do- -do-
Discounted Cash Flows
a) Discuss the importance of capital investment planning and
control.[K]
b) Define and distinguish between capital and revenue
expenditure.[K]
c) Outline the issues to consider and the steps involved in the
preparation of a capital expenditure budget.[K]
At the end of the lesson, the learner should be able to: 5. Budgetary Control and
Reporting
a) Calculate simple variances between flexed budget, fixed
budget and actual sales, costs and profits.[S]
b) Discuss the relative significance of variances.[K]
c) Explain potential action to eliminate variances.[K]
Page 13 of 19
12 E. Standard Costing
At the end of the lesson, the learner should be able to: 1. Standard Costing
Systems
a) Explain the purpose and principles of standard costing. [K]
b) Explain and illustrate the difference between standard,
marginal and absorption costing.[K]
c) Establish the standard cost per unit under absorption and
marginal costing [S]
13 F. Performance
Measurement
At the end of the lesson, the learner should be able to: 1. Performance
Measurement Overview
a) Discuss the purpose of mission statements and their role in
performance measurement.[K]
b) Discuss the purpose of strategic and operational and
tactical objectives and their role in performance measurement.
[K]
c) Discuss the impact of economic and market conditions on
performance measurement.[K]
d) Explain the impact of government regulation on
performance measurement.[K]
2. Performance
At the end of the lesson, the learner should be able to: Measurement –
Application
a) Discuss and calculate measures of financial performance
Page 15 of 19
d) Unit costs
e) Resource utilization
situation[S]
f) Profitability
g) Quality of service
At the end of the lesson, the learner should be able to: 3. Cost Reductions and
a) Compare cost control and cost reduction.[K] Value Enhancement
b) Describe and evaluate cost reduction methods.[S]
c) Describe and evaluate value analysis.[S]
At the end of the lesson, the learner should be able to: 4. Monitoring Performance
a) Discuss the importance of non-financial performance and Reporting
measures.[K]
b) Discuss the relationship between short-term and long-term
performance.[K]
14 c) Discuss the measurement of performance in service
industry situations.[K]
d) Discuss the measurement of performance in non-profit
seeking and public sector organizations.[K]
e) Discuss measures that may be used to assess managerial
performance and the practical problems involved.[K]
f) Discuss the role of benchmarking in performance
measurement.[K]
g) Produce reports highlighting key areas for management
attention and recommendations for improvement.[S]
Page 17 of 19
N.B.
Throughout, the topics in the syllabus assess both knowledge and skills. Therefore a clear distinction is drawn, within each subject area, between assessing knowledge and skills and
in assessing their application within an accounting or business context. The assessment of knowledge is denoted by a superscript K and the assessment of skills is denoted by the
superscript S.
I. Suggested Readings:
Textbooks:
REQUIRED READINGS
Primary text:
1 Robert N. Anthony, David F. Hawkins, and Kenneth A. Merchant Accounting: Text and Cases (12th ed., International) Richard D. Irwin,
Inc. Homewood, Illinois, 2007
Supplement:
2 Anthony Atkinson, Rajiv Banker, Robert Kaplan, & Mark Young Managerial Accounting (5th ed.) Pearson-Prentice Hall, New Jersey, 2007
Other References:
1. Anthony, Robert & David Young (2003). Management Control in Non-Profit Organizations (7th ed.), McGraw-Hill.
Page 18 of 19
2. Brewer, Peter C., Ray H. Garrison, Eric W. Noreen (2008). Introduction to managerial accounting (4th ed.), Boston: McGraw-Hill/Irwin.
3. Edmonds, Thomas P. (2007). Fundamental financial and managerial accounting concepts, Boston: McGraw-Hill/Irwin,
4. Garrison, Ray H., Eric W. Noreen, & Peter C. Brewer (2008). Managerial Accounting (12th ed.), McGraw-Hill.
5. Hilton, Ronald W., Michael W. Maher, Frank H. Selto (2008). Cost management: strategies for business decisions (4 ed.), Boston: McGraw-
Hill/Irwin.
6. Mowen, Maryanne M. (2012), Managerial Accounting (Philippine ed.), Cengage Learning Asia Ltd.
7. Shank, John K. (2006). Cases in cost management: a strategic emphasis (3 ed.), Australia: Thomson/South-Western.
8. Warren, Carl S., James M. Reeve, & Philip E. Fess (2002). Financial and Managerial Accounting (7 ed.), South-Western.
9. Zimmerman, Jerold L. (2006). Accounting for decision making and control (5 ed.), Boston: McGraw-Hill/Irwin.
For more inquiry, you may contact the Dr. JOEL S. SUAREZ phone number 09279029 98 2 / or email at leojzeraus1958 @yahoo.com.
Prepared by:
Atty. Prackie Jay T. Acaylar, CPA, JD, MPA, PhD-BM, FRILL, PD-SML
Professor