Master in Business Administration

MBA 2020
School Year 2019-2020
Course Outline

School W. Sycip Graduate School of Business (GSB)

Course Title Managing Cost and Profit 1
Units 1
Term 1
Faculty John Balce, CPA, CFA
Email Address jbalce@aim.edu
Consultation
By appointment
Hours
Faculty
Celine Mercado Program Staff Lot G. Aramil
Assoc./Asst.
Email Address cmercado@aim.edu Email Address laramil@aim.edu
Extension Extension
3105 1804
Number Number

A. Course Description and Goals

Managing costs is one of the key ways to maximize profit. A business earning high revenues
can still fail if the costs are high and unmanaged. To be successful and remain in business, it is
critical that a manager has a firm grasp of the tools and techniques in managing costs and
driving profitability.

Managing Cost and Profit 1 covers various tools and techniques needed by managers to
understand the nature of costs, estimate costs of products/service, analyze cost behaviors and
learn the relationship between costs, volume and profits. This course provides students a
working knowledge on the use of break-even point analysis, sensitivity or “what-if” analysis and
segment profitability analysis in improving the financial performance of the company. Different
approaches to product/service costing will be discussed: the conventional method, activity-
based costing (ABC), joint costing, and target costing.

Cost information, determined through the tools and techniques to be discussed in this course,
are particularly useful in product / service pricing, operations management, and overall strategy
formulation. This course therefore will be relevant as students take on other courses such as
marketing, operations management and strategic management.

B. Pre-requisites
None

C. Course Learning Outcomes

At the end of the course, students will be able to:
1. Explain the scope, importance, and attributes of cost management and how it can
contribute to value creation of a business organization;
2. Explain the behavior of cost;

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 3. Differentiate between variable, fixed and mixed costs;
4. Calculate the correct costs of a business transaction or event for use in business
planning, control, and decision-making; and
5. Evaluate alternative courses of actions based on the cost and other relevant data and
communicate financial decisions to intended users.

D. Contribution to Program Learning Goals

Course
Learning Program Learning Goals
Outcomes
1 1. Students will be analytical, critical, and logical thinkers
1-5 2. Students will be effective communicators
1-5 3. Students will be effective and ethical leaders and team players
4. Students will effectively manage the interaction of various functional
5
areas
5. Students will have adequate understanding of Asian and global
4-5
businesses
1-5 6. Students will be numerate

E. Learning Methodology
This course will use a combination of the following learning methods and approaches:
▪ Lectures, and Question and Answer Questions:
These will be used regularly to ensure consistent understanding of the topics.
▪ Case and Problem Solving:
This will be the main mode of class discussions. Students are expected to come in
prepared for participation in the discussions.
▪ Examinations:
▪ Examinations will take the form of the mid-term and final exams.

F. Grading Criteria Weight

Mid-Term Exam 20%
Final Exam 20%
Cases and Problem Solving 40%
Class Participation (Students are required to attend at least 80% of the total
20%
number of class sessions in order to get a passing grade.
Total 100%

G. Student Responsibilities and Conduct

Students are expected to conduct themselves with the utmost professionalism in all classes.
Information and policies on student responsibilities and conduct, including dysfunctional
behavior (such as attendance, plagiarism, cheating, etc) and grievance procedures are in the
Student Handbook.

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 H. Course Schedule
Learning or Case Requirements or
Session Topic Copyright date Readings
Materials Submissions
1 How MA can help to Exercise 2 – 24, p. 62 2015 Chapter 1 - 2:
achieve the SDGs? Hilton* Hilton*
Mon
(Nov. 4) The changing role of MA in Case 2 – 60, p.76 Hilton*
a dynamic business
environment.
6:30pm-
9:20pm
Brief Cost Management
Concepts

2 Product costing & cost Case 3-61 – KidCo, Inc., 2015 Chapter 3: Hilton*
accumulation in a batch pp. 128-129, Hilton*
production environment Problem 3 – 48, pp. 119 -
Thurs
120, Hilton*
(Nov. 7) Case 3-62 – Opticom,
Inc. pp. 129-130
6:30pm-
9:20pm

3 Process Costing and Problem 4 – 30, pp. 157 – 2015 Chapter 4: Hilton*
Hybrid Product-Costing 158, Hilton
Systems
Mon
Case 4-39 – Lycoming
(Nov.11)
Leather Company, pp.
163
6:30pm-
9:20pm

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 4 Activity-Based costing and Case 5-68 - Cincinnati 2015 Chapter 5: Hilton*
Management Cycle Company, pp. 220-
Thurs
221* Case 5-69 – Madison
Electric Pump
(Nov 14) Corporation, pp. 221-
222*
6:30pm-
9:20pm
5 Activity Analysis, Cost
Behavior, and Cost
Estimation
Mon Problem 6-39 – Manitoba Problem 6-45 –
(Nov 18) Manufacturing Company, p. 2015 Chapter 6: Hilton* Randolph Dana, pp.
258, Hilton* 261-262
6:30pm-
9:20pm
Nov. 20 Mid Term Exam
6 Cost-Volume-Profit Problem 7-46 – Saturn 2015 Chapter 7: Hilton*
Analysis Game Company, p. 308,
Hilton*
Thurs Problem 7-50,
(Nov 21) required #1-5 only, p.
310, Hilton*
6:30pm-
9:20pm
7 Variable costing and the Case 8-42 – Huron Chalk 2015 Chapter 8: Hilton*
costs of quality and Company, p. 348, Hilton*
Mon
Sustainability Case 8-43 – Huron
Chalk Company
(Nov 25) (continuation), pp.
348-349
6:30pm-
9:20pm

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 8 Decision Making: Relevant Problem 14-44 – 2015 Chapter 14: Hilton*
Costs and Benefits Contemporary Trends, pp.
532 – 533, Hilton*
Thurs Problem 14-54 –
Problem 14-46, Chef PennTech
(Nov 28)
Gourmet, Inc., p. 534, Corporation, p. 628
Hilton*
6:30pm-
9:20pm
9 Target Costing and Cost Problem 15-49 – Suburban 2015 Chapter 15: Hilton*
Analysis for Pricing Heating, Inc., p. 669 Hilton*
Decisions Problem 15-44 – Maritime
Mon
Services Corporation, p. Case 15 – 49, pp.676
(Dec 2) – 677, Hilton*
672, Hilton*

6:30pm-
9:20pm
10 Joint Costing Problem 17-28 – Le Monde 2015 Chapter 17: Hilton*
Company, p. 755, Hilton*
Thurs Problem 17-29, Gleed Case 17-35, Tropics
Company, pp. 756, Hilton* Fruit Company, pp.
(Dec 5)
758-759, Hilton*
6:30pm-
9:20pm]
Dec 7 FINAL EXAM

References
▪ *Managerial Accounting: Creating Value in a Dynamic Business Environment, 10th Edition, 2015 Global Edition, Hilton & Platt

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