SYLLABUS FOR: Accounting 3A (Non-BSA) I. COURSE TITLE: MANAGEMENT USES OF ACOUNTING II.

COURSE DESCRIPTION: This course is intended for NON-BSA students. It covers the use of accounting data to guide management in planning and controlling business operations and in a decision making. Credits: 3 units Prerequisite: Accounting 3 III. GENERAL OBJECTIVES At the end of the course, the student is expected to: 1. Have adequate background before going into budgeting and decision-making based on costs. 2. Appreciate the uses of accounting information in discharging management functions of planning, controlling and decision making. 3. Develop the basic skills in applying management accounting techniques to help management achieve its operational objectives.

AFFECTIVE 1. Introduce the nature of management accounting and the use of accounting information in the performance of management functions 2. Develop awareness of the social responsibilities of a business enterprise. 3. Integrate the values of honesty, fairness and objectivity in presenting financial information. IV. COURSE OUTLINE PART I I- Introduction to Management Accounting A. Specific Objectives At the end of the unit, the student should be able to: 1. Define Management Accounting, controllership, and the finance function in business; 2. Explain the conceptual framework of Management Accounting; and Number of Hours 3

3. Differentiate Management Accounting from Financial Accounting B. Outline 1. Defined 2. 3. 4. Accounting 5. Financial Accounting 6. 7. 8. Treasurership C. Suggested Activities organizational chart) II- Costs and Product Costing A. Specific Objectives At the end of the unit, the student should be able to: 1. Define cost terms; 2. Enumerate the different classes of costs and gives examples each; 3. Differentiate job order costing from process costing; and 4. Make simple computations under product costing methods B. Outline 1. a. Based on function or group of activities involved b. Based on their relation to the product Cost Terms and Classifications Seatwork (preparation of Management Accounting Organization and its objectives Organizational structure Functions of Management Management Accounting vs. Principles in Internal Reporting Stages in MAS Engagements Controllership vs.

Recitation Quiz Assignment 6

c. Based on their relation to departments d. According to timing of charges against revenue e. Based on behaviour or variability f. Based on the accounting period benefited g. Cost for planning and control h. Based on the economics involved in making managerial decisions 2. Requisites 3. Definition and Objectives 4. a. Cost Center b. Profit Center c. Investment Center 5. each a. Job Order Costing b. Process Costing 6. Costing Absorption vs. Variable Product Costing- Distinguish Control Definition and Responsibility Accounting Responsibility Centers

C. Suggested Activities job order and process costing methods) responsibility accounting, responsibility centers) and give examples each) Seatwork (computations under

Recitation Quiz (cost terms,

Assignment (20 cost terms

PART II I- Cost-Volume-Profit Analysis 6

A. Specific Objectives At the end of the unit, the student should be able to: 1. Understand the different cost behaviour patterns and their importance in

cost analysis, profit planning and decision making; 2. 3. 4. Identify mixed costs and separate them into fixed and variable components; Enumerate the assumptions under CVP analysis; Compute for break-even point, sales with desired profit, sales resulting a loss,

net income based on margin of safety, and product cost and net income under variable costing 5. Analyze the effect on profits of changes in costs, selling price or volume

B. Outline 1. Profit Computation a. Profit = Sales Total Costs and Expenses b. Profit = Sales Cost of Goods Sold Operating Expenses c. Profit = Sales Variable Cost Fixed Cost 2. Cost Behavior and Assumptions 3. Segregation of Fixed and Variable Elements of Mixed Costs 4. Break-even analysis a. Break-even point b. Sales with desired profit c. Sales resulting a loss d. Sales with desired profit after tax

C. Suggested Activities Seatwork Recitation Quiz Assignment

II- Differential Cost Analysis A. Specific Objectives At the end of the unit, the student should be able to:

1. Know the nature of decision making and the procedures involved in decision making 2. Know the different types of costs for different types of alternative choice problems 3. Know how to come up with recommendations to clients to help them make sound decisions when alternative choice problems are encountered

B. Outline 1. Decision making definition and procedures involved 2. Qualitative and Quantitative Factors 3. Relevance of an Item of Cost 4. Short term, non-routine decision making cases a. Accept or reject a special order or a business proposal b. Make or buy a part, subassembly or product line c. Sell or process further a product line d. Product combination e. Continue operating or close a business segment 5. Pricing Decisions a. Full cost pricing b. Variable Cost Pricing c. Conversion Cost Pricing d. Return on investment pricing C. Suggested Activities Seatwork Recitation

Quiz Assignment

III- Budgeting A. Specific Objectives At the end of the unit, the student should be able to: 1. Know the nature and characteristics of budget 2. Understand the importance and functions of budgeting

B. Outline

1. 2. Disadvantages of Budgeting 3. 4. 5. a. Operating Budget b. Financial Budget

Budget Defined Advantages and Functions of Budgeting Budget vs. Standards Master Budget

C. Suggested Activities Seatwork Recitation Quiz Assignment

IV- Financial Statement Analysis A. Specific Objectives

At the end of the unit, the student should be able to: 1. State the importance of analyzing financial statements 2. Enumerate the tools and techniques in analyzing financial statements

B. Outline 1. Objectives and limitations of financial statement analysis 2. Analysis of firms solvency, stability, and profitability using: a. Financial ratios b. Common size statements c. Comparative statements

C. Suggested Activities Seatwork Recitation Quiz Assignment