Pasig Catholic College

COLLEGE DEPARTMENT

Outcomes-Based Teaching Learning Plan

Course Title STRATEGIC COST MANAGEMENT Course Code Mgnt. 106

Credit Units 3 Course Pre-/Co-requisites
Program Outcomes

A graduate of BS In Accountancy
1. Resolve business issues and problems, with a global and strategic perspective using knowledge and technical proficiency in the areas of
should be able to : financial accounting and reporting, cost accounting and management, accounting and control, taxation and accounting information
systems.
2. Conduct accountancy research through independent studies in related literature and appropriate use of accounting theory and
methodologies.
3. Employ technology as a business tool in capturing financial and non- financial information, generating reports and making decisions.
4. Apply knowledge and skills to successfully respond to various types of assessments including professional licensure and examinations.
5. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions as
an accountant.

Course Description This course covers managerial accounting and cost management practices that can be strategically applied across the various functions of a
business organization to improve organizational performance. The course emphasizes the methods available to measure and evaluate costs for
decision-making and performance evaluation purposes. It reviews a number of cost management issues relating to the design and
implementation of strategic, marketing, value analysis, and other management models in modern firms; and identifies major contemporary
issues in managerial accounting and financial decision-making. A variety of case studies in different industries and decision contexts are used
to examine the application of these concepts.
Course Intended Learning Outcomes At the end of the course, the students are expected to:
[CILO] 1. Explain and articulate the accounting information in the financial report using financial analysis to make appropriate business
decisions.
2. Critique and evaluate financial reports to understand on a tactical and strategic level areas of improvement in functional areas of the
company.
 3. Evaluate previous financial reports and measure appropriate budgets for each functional areas.
4. Evaluate and devise plans and metrics that will guide upper management with decision making.
5. Create a Strategic Management Paper identifying possible errors in business decisions and provide suggestions to rectify company
situation.

DETAILED LEARNING PLAN

Week Content Standards Declarative Knowledge Intended Learning Outcomes Suggested Flexible Teaching / Assessment Tasks
[ILO] Learning Activities [TLAs] [ATs]

Synchronous Asynchronous
Week 1 Demonstrate understanding Presentation/ Orientation of the After the discussion, the Presentation of the
(3 hours) of the course details, its subject, requirements, grading students must be able to: syllabus.
requirements, grading system, required textbooks and 1. Understand and clarified
system, class management references, class management with the subject Clarification of
policies and procedures and policies and procedures requirement, class Expectation
required textbooks / policies and procedures,
references grading system and other
matters related to the
course.

Demonstrate knowledge in INTRODUCTION AND 2. Appreciate the  Lectures/  Group  Oral

the Strategic Cost OVERVIEW OF THE importance of strategic Discussion Tasks Presentation
Management Process STRATEGIC COST cost management to  Class Activity  Case  Homework
including its importance in MANAGEMENT PROCESS business industry. exercises Problem  Quizzes
the industry.  Multimedia Solving  Recitation
a. Definition of Strategic Presentation
Cost Management  Case Study
3. Be guided on the flow of Report
b. Overview of the topics the topics to be discussed
to be discussed in this for the whole semester
course concerning strategic cost
c. Importance of strategic management
cost management to the
industry
Week 2- 3 Demonstrate understanding COST CONCEPTS FOR After the discussion, the  Lectures/  Group  Oral
(6 hours) of the different cost concepts DECISION-MAKING students must be able to: Discussion Tasks Presentation
in decision making; cost a. Nature of Cost, Cost 1. Explain the nature of  Class Activity  Case  Homework
behavior patterns, break even Pools, Cost Objects and cost, cost pools, cost exercises Problem  Quizzes
concepts and the cost volume Cost Drivers objective and cost  Multimedia Solving  Recitation
profit relationship. b. Classification of Costs drivers Presentation  Case Study
c. Contribution Margin 2. Identify and explain the Report
Income Statement various classifications of
Review costs according to
d. The Decision Making a. Nature
Process b. Timing of
e. Identifying Relevant recognition as
Costs expense
f. Approaches in c. Cost behavior
Analyzing Alternatives d. Cost objective
in Nonroutine Decision e. For decision-making
Making and other analytical
g. Different Types of purposes
Decisions

COST BEHAVIOR AND After the discussion, the

CVP ANALYSIS students must be able to:
a. Definition of Cost 1. Explain the meaning of
Behavior cost behavior.
b. Importance of 2. Enumerate and explain
Understanding Cost the basic cost behavior
Behavior patterns.
c. Types of Cost Behavior 3. Explain and diagram the
Patterns behavior of variable
d. Cost Volume Profit costs, fixed costs, and
Analysis Review mixed costs in relation to
e. Basics and Significance volume of activity.
 of CVP Analysis 4. Describe the concept and
f. CVP Analysis for importance of cost-
Breakeven Planning volume profit
and Revenue and Cost relationship
Planning 5. Compute and explain the
meaning of contribution
margin and break-even
point
6. State the assumptions
and limitations of CVP
Analysis

Week 4- 5 Demonstrate understanding REVIEW OF PRODUCT At the end of these lessons, the  Lectures/  Group  Oral
(6 hours) of product costing, variable COSTING student must be able to: Discussion Tasks Presentation
costing, absorption costing, a. Definition of 1. Recall the different  Class Activity  Case  Homework
throughput accounting and Absorption Costing methods used in product exercises Problem  Quizzes
the cost systems in short term b. Definition of Variable costing  Multimedia Solving  Recitation
decision making. Costing 2. Differentiate each Presentation  Case Study
c. Comparison between method from one another Report
Absorption and 3. Appreciate the
Variable Costing importance of studying
d. Review of Job-Order product costing to
Costing and Process business profit planning.
Costing, and Activity-
Based Costing
Concepts

VARIABLE COSTING AND At the end of these lessons, the

THROUGHPUT student must be able to:
ACCOUNTING (COST 1. Explain the meaning and
SYSTEMS FOR SHORT- underlying concept of
variable costing
TERM DECISION-
2. Enumerate the
MAKING)
 a. Definition of Variable advantages and
Costing and Its disadvantages of using
Underlying Concept variable costing as a
b. Advantages and method of product
Disadvantages of Using costing
Variable Costing 3. Describe absorption
c. Reconciliation of Net costing
Income under Variable Compare variable costing with
Costing with Net absorption costing
Income under
Absorption Costing
d. Reasons Why
Managers Prefer Direct
Costing to Absorption
Costing

Week 6- 7 Demonstrate understanding STANDARD COSTING At the end of these lessons, the  Lectures/  Group  Oral
(6 hours) of the concept of standard AND VARIANCE student must be able to: Discussion Tasks Presentation
costing and the analysis of ANALYSIS 1. State the nature and  Class Activity  Case  Homework
variances in the different a. Rationale of Standard rationale of standard exercises Problem  Quizzes
components of manufacturing Costs costs.  Multimedia Solving  Recitation
costs. b. Users of Standard 2. Discuss the users of Presentation  Case Study
Costs standard cost. Report
c. Benefits and 3. Explain the benefits and
Limitations of Standard limitations of standard
Costs costs.
d. Setting Direct 4. Explain the process of
Materials Standards setting standard costs for
e. Setting Labor direct materials, direct
Standards labor, and overhead.
f. Setting Overhead 5. Identify the possible
Standards causes of variances and
g. Analysis of Variances responsibility for them.
 h. Direct Materials and 6. Compute and analyze the
Direct Labor Variance variances between actual
Analysis and standard costs.
i. Factory Overhead
Variance Analysis

Week 8 Demonstrate familiarity with BALANCED SCORECARD At the end of these lessons, the  Lectures/  Group  Oral
Functions, perspectives best a. Major Management student must be able to: Discussion Tasks Presentation
features and relevant Functions 1. Explain the four major  Class Activity  Case  Homework
competitive strategies of the b. Strategic Competitive management functions. exercises Problem  Quizzes
Balanced Scorecard. Analysis 2. Familiarize with three  Multimedia Solving  Recitation
c. The Balanced competitive strategies Presentation  Case Study
Scorecard 3. Understand the four Report
d. Four Perspectives of perspectives of the
the Balanced Scorecard balanced scorecard
e. Features of a Good 4. Know the features of a
Balanced Scorecard good balanced scorecard
f. Evaluating the Success
of a Strategy
g. Internal Business
Process Performance

Week 9 MIDTERM PERIOD Major examination

(3 hours)

Week 10-11 Demonstrate understanding RELEVANT COSTS FOR At the end of these lessons, the  Lectures/  Group  Oral
(6 hours) of the decision making NON- ROUTINE student must be able to: Discussion Tasks Presentation
process and the determination DECISION MAKING 1. Identify Relevant and  Class Activity  Case  Homework
of the relevant cost for non- a. Identification of Irrelevant cost in exercises Problem  Quizzes
routine decision making. Relevant cost decision making  Multimedia Solving  Recitation
b. The Decision Making 2. Explain the Decision Presentation  Case Study
Process Making process Report
c. Approaches in e. Discuss the different
 Analyzing alternatives approaches in analyzing
in Non routine alternatives in Non
Decision Making routine Decision Making
d. Types of Decisions 3. Identify and explain the
 Make or Buy decision different types of
 Adding/ Dropping decisions to be
Products/ segments facilitated in business
 Sell Now or process 4. Discuss the qualitative as
further well as the qualitative
 Accept/ Reject factors that are to be
additional orders considered in making a
 Utilization of Scarce decision
resources
 Maintain/ Replace
assets
 Shutdown /Continue
Operations

Week 12-14 Demonstrate understanding STRATEGIC PLANNING At the end of these lessons, the  Lectures/  Group  Oral
(9 hours) of the strategic budget AND CONTROL: BUDGET student must be able to: Discussion Tasks Presentation
planning and control process a. Role of Budget 1. Understand and identify  Class Activity  Case  Homework
and organizational b. Importance of strategy the strategy in budgeting exercises Problem  Quizzes
innovations such as the TQM in budgeting and its importance  Multimedia Solving  Recitation
and Just in Time concepts c. Formulation of strategy 2. Formulate a budgeting Presentation  Case Study
and principles d. Management process of strategy Report
Budget preparation 3. Describe the steps and
e. Preparation of a Master process of Budget
Budget
preparation
f. Operational budget
4. Understand the contents
g. Financial Budget
of the Master Budget
5. Prepare a comprehensive
 Master budget

ORGANIZATIONAL At the end of these lessons, the

INNOVATIONS: TOTAL student must be able to:
QUALITY MANAGEMENT 1. Describe the core principle
(TQM) and JUST IN TIME of TQM
SYSTEM (JIT) 2. Understand the different
a. Core Principles of cost of quality and its
TQM effects in business
b. TQM implementing 3. Understand the JIT
guidelines philosophy.
c. Types of Conformance 4. Know and understand the
d. Cost of Quality five key elements involved
e. Key features of JIT in the operation of a JIT
System. system.
f. Financial benefits of 5. Differentiate the JIT system
JIT from the traditional costing
g. Cost flows in JIT system.
Costing.

Week 15-16 Demonstrate competence in CAPITAL INVESTMENT At the end of these lessons, the  Lectures/  Group  Oral
(6 hours) the evaluation of different DECISIONS student must be able to: Discussion Tasks Presentation
capital investment proposals a. Capital Budgeting 1. Define and explain the  Class  Case  Homework
such as the payback period, defined importance of Capital Activity Problem  Quizzes
annual rate of return and the b. Characteristics of Budgeting exercises Solving  Recitation
discounted cash flow method. Capital Budgeting 2. Describe the different  Multimedia  Case Study
decisions characteristics in a Presentation Report
c. Categories of Capital capital investment
Investment decisions
d. Net Initial Investment 3. Understand the
or Project Costs components of a project
e. Net Cash returns costs.
f. Minimum or Lowest 4. State the minimum or the
 Acceptable Rate of lowest acceptable rate of
Returns return in a given project
g. Screening Capital 5. Evaluate and understand
Investment Proposals the different Capital
 Payback period investment proposals
 Bail out period using Discounted Cash
 Accounting rate of flows and Non
return Discounted cash flow
 Discounted Cash methods
Flow Techniques
a. Net Present
Value
b. Profitability
Index
c. Internal rate of
Return

Week 17 Demonstrate understanding STRATEGIC At the end of these lessons, the  Lectures/  Group  Oral
(3 hours) of the principles in a strategic PERFORMANCE student must be able to: Discussion Tasks Presentation
performance measurement MEASUREMENT AND 1. Understand the  Class  Case  Homework
and transfer pricing concepts. TRANSFER PRICING importance of Activity Problem  Quizzes
a. Performance performance evaluation exercises Solving  Recitation
Evaluation and Control and control  Multimedia  Case Study
b. Basic concepts in 2. Describe the basic Presentation Report
Strategic Performance concepts of strategic
Measurement performance
c. Decentralization and measurement
Segment Reporting 3. Differentiate
d. Responsibility centralization from
Accounting decentralization
e. Transfer Price defined 4. Understand the
f. Alternative Transfer importance of
Pricing Schemes Responsibility
  Minimum transfer accounting in an
price organization
 Market based 5. Identify and explain the
transfer price different alternative
 Cost based transfer transfer pricing schemes
price 6. Define the concept of
 Negotiated transfer Distress Pricing
price
g. Distress Pricing
h. Transfer price for
services
i. Multinational transfer
pricing

Week 18 FINALS Major Examination

(3 hours)

REFERENCES:

Cabrera, Ma. Elenita B. (2019) Strategic Cost Management 2019-2020 ed, GIC Enterprises & Co. Inc
Deleon, Norma D. (2019) Cost Accounting and Control 2019 ed.. GIC Enterprises & Co. Inc.
Drury, C (2015). Management and Cost Accounting (8th Edition). Andover: Cengage Learning
Weygandt, Jerry et al., (2017), Weygandt's Managerial Accounting: Tools for Business Decision Making, 1st Edition, Global Edition, Wiley
Raiborn, J. (2015) Cost Accounting 2nd Edition, Cennage Learning

COURSE REQUIREMENTS
Attendance/Class Participation - All students are expected to arrive/ connect on time, in proper attire, stay and attend the course throughout the sessions
and by completing all course assignments (cases, readings, oral reports, assignments, activity outputs) in an academic
manner with complete preparation for active participation in the class, absences will result in a negative score.
Professional Conduct – Please turn off/ put in a silent mode/ unmute all your laptops/ net books/ cell phones during the class. Refrain from texting, emailing
or web surfing during the session. Respectful communication of each student as a professional behavior is expected
throughout the class. During discussions, civil discourse should be maintained at all times and comments should be
aimed at moving the discussion forward.

Deadlines – Submission of all assignments, case analysis, online research work and other required task are strictly imposed. Please observe utmost compliance.

GRADING SYSTEM

Major Examinations: 30%

Midterm/ Finals

Class Average and Participation 60%

Quizzes/ seatwork/ Homework/
Recitation/ Class Presentation/
Case Problems/ analysis

Attendance 10%
100%

Prepared by: Checked by: Approved by:

Dr Rolando E. Robledo Mrs. Jennifer Charangerro Dr. Leonora Fernande