TOMAS DEL ROSARIO COLLEGE

Balanga City, Bataan

SYLLABUS IN ACCOUNTING 8
MANAGEMENT ACCOUNTING-PART II
Pre-requisite:Accounting 7

I.

COU RSE DESCRIPTION

:
This is the second part of Management Accounting and deals with the application of techniques and concepts focusing on segment reporting,
profitability analysis, and decentralization; information for decision-making purposes (short-term and long-term) and non-financial indicators such
as productivity per employee or per service unit; decision making affecting short-run operations of the company capital budgeting decisions; and
business planning.

II.

COURSE GOALS
:
At the end of the course. Students are expected to:
Cognitive:
1. Have a through understanding of the basic concepts and practice of management advisory services.
2. Obtain a sufficient comprehensive management decision-making processes, such the planning and control techniques in business
operations.
3. Develop the ability to be analytical in the decision making process.
Psychomotor:

III.

1. Learn how to use computers and other office machines and an opportunity to apply computer skills to management accounting.
2. Compares strengths and weakness of capital investment evaluation methods.
3. Describe various types of non-financial performance measures.
Affective:
1. Develop and exercise professional attitude by being honest, objective and technically components as well as to be intellectually
independent in giving advises and recommendations in rendering management advisory services.
2. Develop management skills and competence considering social responsibilities at all times.
3. Prepare and analyze accounting data, apply it to a range of planning, control and decision-making situations and adapt it to accommodate
change.
COURSE CONTENT

Learning Objectives

Learning Contents

Time

Learning Activities

Learning Assessment

Allotment
PRELIMINARY PERIOD
Explain the concept and
objective of responsibility of
accounting system.
Describe the different types of
responsibility centers.
Enumerate the advantages of
responsibility accounting.
Prepare performance reports
Evaluate performance of
profit center, cost center,
investment center and revenue
center.
Discuss the need for transfer
price
in
decentralized
organization.
Explain
the
general
approaches in setting transfer
price.
Compute the transfer price
using the various approaches.
Discuss the procedure in
setting transfer price for
service companies.
Describe the application of
multinational transfer pricing.
Define budgeting and
discuss
its
role
in
planning, control and
decision making.
Prepare functional and
activity-based budgets.
Understanding
how
budgets
are
implemented.

1. Responsibility Accounting
1.1
Goal congruence and Motivation
1.2
Types of responsibility Center
(i)
Cost center
(ii)
Revenue Center
(iii)
Profit Center
(iv)
Investment Center
1.3

Performance Analysis through

(i)
Responsibility Cast Report
(ii)
Segment Income Statement
(iii)
Residual Income and ROI

2. Transfer Pricing
(i)
Rationale
(ii)
The Need for Transfer Pricing
(iii)
Alternative Transfer Pricing
Schemes.
(iv)
Transfer Price for Services
(v)
Multinational Transfer Pricing

3. Functional
and
Activity-Based
Budgeting
3.1 The Basic framework of
Functional and Activity-Based
Budgeting.
3.2 Developing and Implementing
Budgeting
systems:
Functional and Subsidiary
Budgets and Master Budgets.
PRELIMINARY EXAMINATION WEEK

Week 1
Orientation

Lecture discussion

Oral Assessment

Lecture discussion
Board work

Oral Assessment

Week 3
(3hours)

Lecture discussion
Demonstration

Written Assessment

Weeks 4-5
(4.5 hours)

Lecture
discussion
Demonstration

Written assessment

Week 2
(3hours)

Week 6

ACCOUNTANCY WEEK
MIDTERM PERIOD:
State the nature and
rationale of standard
cost.
Discuss the users of
standard cost.
Explain the benefits and
limitations of standard
costs.
Describe how standard
set
Explain the process of
setting standard costs
for
direct
material,
direct
labor
and
overhead.
Describe

4. Standard
cost
and
Operating
Performance Measures
4.1 Rationale of standard Cost
4.2 Users of standard Costs
4.3 Benefits and limitations
4.4 How standards are set
4.5 Analysis of variances

Week 1
3 hours
OHP
Presentation

Written Assessment