Eig 13

Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION

Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
Page No.: Page 1 of 76
DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE
Prepared by: DCAVRKMI
QUALITY FORM Reviewed by: QMR
Approved by: President

College of Business and Accountancy
University Site, Barangay Ibabang Dupay, Lucena City
AN ANALYSIS OF THE COST MANAGEMENT SYSTEM

OF AVE COCONUT PRODUCTS
An Undergraduate Thesis Presented to the Faculty of the

Manuel S. Enverga University Foundation
Lucena City
In Partial Fulfilment of the Requirements

for the Degree of Bachelor of Science in Accountancy
Aime Jane P. Mediarito

Via Nicole H. Rodil
Evelyn T. Ursolino
Exequiel M. Zoleta
December 2018
APPROVAL SHEET
This thesis hereto entitled:
AN ANALYSIS OF COST MANAGEMENT SYSTEM

OF AVE COCONUT PRODUCTS
prepared and submitted by Aime Jane P. Mediarito, Via Nicole H. Rodil, Evelyn T.
Ursolino, and Exequiel M. Zoleta in partial fulfillment of the requirements for the
degree of Bachelor of Science in Accountancy has been examined and recommended
for acceptance and approved for ORAL EXAMINATION.
CARLITO M. RODRIGUEZ
Adviser
PANEL OF EXAMINERS
Approved by the Committee on Oral Examination with a grade of ______________.
FLORMANDO BALDOVINO
JUSTINIANO SANTOS CATHERINE M. LIMJUCO
Accepted in Partial fulfillment of the requirements for the Degree of Bachelor of

Science in Accountancy.
CATHERINE M. LIMJUCO, CPA, MBA

Acting Dean, College of Business and Accountancy
DECEMBER 2018
Table of Contents (DO NOT PRINT PAGE 3 & 4)
Title Page……………………………………………………………………………..………….1
Approval Sheet…………………………………………………………………………….…….2
Table of Contents………….......………………………………………………..………………3
List of Tables………………………………………………………………...…..………………5
Acknowledgement……………………………………………………………..………….
…….6Abstract..
……………………………………………………………………………………...….7
1. Background of the Study.........................................................................................
a. Rationale of the Research...................................................................................
b. Purpose of the Research.....................................................................................
c. Theoretical Framework........................................................................................
d. Literature Survey..................................................................................................
e. Significance of the Research...............................................................................
f. Statement of Desired Outcomes..........................................................................
g. Major Final Output……………………………………………………………….

h. Target Beneficiaries of Research Results………………………………………...
i. Definition of Terms………………………………………………………………
j. Scope and Limitation of the Study……………………………………………….
2. Description of Method or Approach……………………………………………………
a. Research Design/Research Instrument/Data Gathering Procedures…………...
b. Respondents/Units of Analysis/Subjects of the Study……………………………
c. Sampling Design and Procedures………………………………………………..
d. Hypotheses……………………………………………………..
e. Data Analysis Plan………………………………………………………………
f. Conceptual Framework…………………………………….
3. Results and Discussion………………………………………………………………...
4. Conclusions……………………………………………………………………………
5. Recommendations……………………………………………………………………..
6. References……………………………………………………………………………..
Appendices……………………………………………………………………………...
Curriculum Vitae of the Researcher…………………………………………….
Research Instruments…………………………………………………………...
List of Tables
Table 1 Planning
Table 2 Budgeting
Table 3 Controlling
Table 4 Product Costing

ACKNOWLEDGMENTS
The researchers would like to express their sincerest appreciation to the
following who guided them in finishing this study.
Their Parents for their unconditional love, understanding and support for the
researchers ‘needs;
Their thesis adviser, Mr. Carlito M. Rodriguez for his guidance in conducting
this study;
Their panelists in their preliminary and final defense, Mr. Flormando Baldovino,
Ms. Catherine Limjuco, and Mr. Justiniano Santos, for their generosity to share their
knowledge in order to improve the study;
Mr. Flormando Baldovino, for helping them in employing appropriate statistical
treatment to their gathered data;
Lastly, to Almighty God for his never-ending love and for His Divine intercession
that made everything possible.
AJPM
VNHR
ETU
EMZ
Research Title: An Analysis of the Cost Management System of AVE Coconut Products
Name of Researcher: Mediarito, Aime Jane P.
Bachelor of Science in Accountancy
Rodil, Via Nicole H.
Ursolino, Evelyn T.
Zoleta, Exequiel M.
Name of Research Adviser: Mr. Carlito M. Rodriguez

1. Abstract
A cost management system is part of an overall management information
and control system. A cost management system (CMS) consists of a set of formal
methods developed for planning and controlling an organization’s cost-generating
activities. The study is focused on analyzing the Cost Management System of AVE
Coconut Products. The purpose of the research is to identify the strengths and
weaknesses of the current cost management system of the business and determine if
there is an association between planning, budgeting and controlling of costs and
product costing. Weighted mean formula was used to find out the strengths and
weaknesses of the cost management system and the chi-square test is used to
determine if there is an association between planning, budgeting and controlling of
costs and product costing. The data are processed and analyzed. The results can be
interpreted as the two highest weighted mean represent the strengths while the two
lowest weighted mean represent the weaknesses. The result also implied that the
respondent’s perception on each dimension is not independent with their perception
on the other dimensions. The alternative hypothesis is accepted indicating that there
is a significant association between planning, budgeting, and controlling of costs and
product costing. Overall, the cost management system is adequate for the company.
2. Background
a. Rationale of the research
Hilton (2008) said that a revolution is transforming the world of business.
Not since the mid-19th century have we seen changes as sweeping and dramatic.
The growths of international competition, the breakneck pace of technological
innovation, and startling advances in computerized systems have created a new
playing field for manufacturers around the globe. Some manufacturers have emerged
as world-class producers, while others have fallen by the wayside. Added domestic
and foreign competition is forcing manufacturers to strive for a better understanding
of their cost structures. Moreover, the cost structures of many manufacturers have
changed significantly over the past decade.
Cost management is the use of cost accounting systems and methods to
guide current and future operations toward specified objectives; the analysis and
interpretation of cost data is critical to the decision-making process.
According to Hilton (2008), cost management system should provide the
means to develop accurate product or service costs. This requires that the system be
designed to use cost driver information to trace costs to products and services. A cost
management system should help managers comprehend business processes and
organizational activities.
AVE Coconut Products is a social enterprise company based and engaged
in manufacturing and processing high value coconut products for food, neutraceutical
and cosmetic applications such as VCO, coconut sugar, and other high value
coconut-based products. The founder, Mr. Juan Dela Cruz a COCOFED Scholar, was
raised by coconut farming livelihood in the remote island of Quezon Province. Being
the innovator and initiator, he was the first to introduce “Kakang Gata”, a ready-made
coconut milk in 1989.
In 1992 the founder CEO become a vendor in Lucena public market, 2003
it started the VCO processing with the started Capital of P50,000.00; 2006 adopted
VCO NHS Process; 2009 it is officially registered AVE; 2013 promoted village VCO
processing and established standardization plant; 2014 As a social enterprise entered
partnership with Peace & Equity Foundation.
In the year 2015, AVE Coconut Products became an organic certified
institution by international accrediting bodies (EU, JAS, USDA-NOP), and finally start
to export after this, and secure other compliances such as HALAL, Kosher and Fair
TSA. In 2016, AVE Coconut Products started to diversify high value coconut-based
products, especially on sap products such as Coconut Sugar and Coconut Sap
Vinegar.
From the very beginning, AVE Coconut Products use their own
management system that causes a lack in planning and controlling of costs and this
becomes the primary reason in conducting the study. Using an appropriate cost
management system, the company can firmly estimate the cost elements of the
operation that may provide information in the company's cost management decision.
This can help form a budget plan on future costs that the company may incur and
adjust erroneous computation of the cost of a product. It shall be able to identify and
eliminate production processes that are inefficient and allocate processing concepts
that lead to the very same part at a better yield.
Since AVE Coconut Products indicates extensive discussions highlighting
the need for improvements in cost management, therefore, a study has been carried
out to apply an appropriate cost management system in order to derive maximum
advantage in a manufacturing setup through this; the researchers can help to
improve the cost management system of the company. Having an appropriate cost
management system will aid the company in enhancing its level of efficiency in the
use of its budget. Application and compliance to appropriate cost management
system can lead to more successful transactions in business of AVE Coconut
Products for the nine years of existing in the industry & to the future.
b. Purpose of the research
This study primarily aims to analyze the cost management system of AVE Coconut
Products.
Specifically, these are the following questions that the researchers would like to
answer:
1. What is the business profile of AVE Coconut Products in terms of:
a) Nature of business
b) Size of business
c) Years of existence
d) Type of products
e) Capitalization
2. What are the strength and weaknesses of the current cost management
system for optimization of costs in terms of:
a) Planning
b) Budgeting and;
c) Controlling
d) Product costing
3. Is there an association between planning, budgeting and controlling of costs
and product costing?
c. Theoretical Framework
The theoretical framework was based on the field study analyzing the cost
management system practices of three Japanese firms (Tokyo - Yokohama –
Kamakura) in the same supplier chain identified the development of inter-
organizational cost management systems. These systems are designed to create
downward cost pressures on the entire supplier chain. This pressure is achieved
through several different mechanisms including target costing systems, minimum cost
investigations, and quality-price-functionality tradeoffs. These mechanisms relieve
sales of the responsibility for pressuring manufacturing on cost and allow them to
focus on other areas of coordination between the functions.
According to Cooper & Yoshikawa, the objective of these inter-
organizational systems is to identify innovative ways to reduce the cost of the
products supplied by the chain. In theory, these mechanisms should result in lower
cost products by allowing all of the firms in the chain to share information. This
sharing leads to better solutions to the cost reduction problem. By designing products
jointly, the firms can try to reach a global minimum cost instead of a series of local
minimum costs.
Archie Lockamy III (2003) said that firms have searched for better ways
to align their cost management systems with the realities of their business
environments. The advent of accelerated global competitiveness, reduced
product life cycles, rapid technological advancements, and inter‐organizational
supply chains have drastically increased the need for more effective approaches
to cost management. In recent years, activity‐based, constraint‐based, and hybrid
cost management systems have been adopted by some firms to dampen the
effects of their traditional (full‐absorption) costing methodologies. However, a
holistic approach is needed to facilitate strategic cost management based upon
organizational objectives, organizational needs and capabilities, and customer
requirements.
The framework is founded on the idea that identifying the strengths and
weaknesses of the cost management system will substantially help the operation of
the business by ensuring that the costs are properly accounted for by sufficient
planning and efficiently controlled by the management
d. Literature Survey
Hilton (2008) said that a revolution is transforming the world of business.
Not since the mid-19th century have we seen changes as sweeping and dramatic.
The growths of international competition, the breakneck pace of technological

innovation, and startling advances in computerized systems have created a new
playing field for manufacturers around the globe. Some manufacturers have emerged
as world-class producers, while others have fallen by the wayside. Added domestic
and foreign competition is forcing manufacturers to strive for a better understanding
of their cost structures. Moreover, the cost structures of many manufacturers have
changed significantly over the past decade. To shape the future, businesses need to
establish and build relationships with customers. Coulson-Thomas (2004)
Rushe and Waples (2008), Corporation must be able to adapt to evolve if
they wish to survive. Business operates with the knowledge that their competitor will
inevitably come to the market with the product that changes the basis of competition.
The ability to change and adapt is essential to survival.
Cost Management Systems (CMS) are often prescribed to assist in cost
planning and control in manufacturing organizations. According to the study of
Andreas Nicolaou, the specific manufacturing strategy of a firm influences the
effective management of costs and the design of cost management systems (CMS).
The effective design and use of CMS should therefore assist in the successful
implementation of manufacturing strategy.
A cost management system is part of an overall management information
and control system. A cost management system (CMS) consists of a set of formal
methods developed for planning and controlling an organization’s cost-generating

activities. Business entities face two major challenges: achieving profitability in the
short run and maintaining a competitive position in the long run. An effective cost
management system must provide managers the information needed to meet both of
these challenges.
Shanmuganathan and Baskar (2016), cost management techniques like
cost flow forecasting, cost planning & control and estimate having highest relative
importance is the important one to control the cost.
Cost management systems are important, but equally important is to know
how and when to apply them to achieve long-term success. Cost management
systems help managers understand cost structure and behavior. Therefore, they can
make decisions that will enable the organization to achieve or exploit a strategic
competitive advantage (Buckingham and Loomba 2001:12). In taking a strategic
emphasis, cost management looks to the long-term competitive success of the firm.
Cost management is considered as a key point that enables to decrease projection
costs of product and its processes. (Kurunsaari et al,2003:318)
Cost control is concerned with an element of marginal cost which involves
the determination of unit cost, measurement and correction of the performance of
subordinates to make sure that the objective of the enterprises and the means to
obtain them are accomplished effectively and economically. (Lockey, 2002) Cost
control is the regulation of cost of operating a business and is concerned with

keeping costs within acceptable limits. These will usually be specified as a standard
cost or target cost limits in formal operational plan.
Cost control techniques refer to the various methods applied in controlling
Cost control techniques refer to the various methods applied in controlling cost by
various organizations. The techniques are evolved by the account department with
cost and management section at the core of implementation. It includes the following;
budgetary control, standard costing and material control.
In business, a budget may be defined as a formal expression of the
expected income and expenditure for a definite future time. Lucey (2002) defines a
budget as the expression of a firm`s plan in financial form for a period of time in future
while a budgetary control is concerned with the efficient use of resources to achieve a
previously determined objectives or set of objectives contained with a plan.
Budgetary control is a system whereby the budgets are used as a means
of planning and controlling costs. Budgeting is laid down as to what is attained and
how it is to be attained while control ensures that the objectives are realized and
actual results do not deviate from the planned course more than necessary.
Budgetary control system is a system of controlling costs which include the
preparation of budgets, co-coordinating the department and establishing
responsibilities, comparing actual performance with the budgeted and acting upon
results to achieve maximum profitability. ACCA Study Text (n.d.) defines budgetary
control as the establishment of budgets relating to the responsibilities of executives to
the requirement of a policy and the continuous comparison of actual with budgeted
results, either to secure by individual action the objective of that policy or to provide a
basis of revision. From this definition, it is clear that budgetary control operates
through different budgets.
The technique of standard costing is applied in order to overcome the
various limitation of historical costing. Historical costing which refers to the
ascertainment of costs after they have been incurred provides the management with
an account of what has occurred. Standard costing technique involves the
preparation and use of standard costs, their comparison with actual costs and the
analysis of the deviations to their causes so as to provide for corrective action (Sikka,
2003).
Standard costing is therefore defined by Nweze (2010) as a system of
accounting which makes use of predetermined costs relating to each element of cost
layout, materials and overhead for each line of product manufactured or service
supplied. Technique therefore represents an integral part of management accounting
control technique which will also include budgeting system and responsibility
accounting statement.
Basically, standard costing is a technique of cost control under which cost
data for activity are pre-determined on the basis of normal levels of operation. The
efficiency and costs incurred at actual performance are compared with pre-
determined standards and deviation or variance, if any is ascertained, an analysis of
variance is made with reference to their causes with a view to fix the responsibility of
the particular executive. A report on such analysis is submitted to the management to
enable to take corrective measures to ensure that actual costs are consistence with
standard costs in future.
In an average manufacturing concern, the cost of material constitutes a
large proportion of the total product cost and as such there should be a proper
system of material control to ensure economy in the cost of production. Material
control is a system which ensures the provision of the required quantity of material of
the required quality at the required time with the minimum amount of capital
investment (Sikka, 2003).
A complex business requires frequent information about the operation in
order to plan for the future, to control present activities and to examine the past
effectiveness of the manager, employees, and related business segment (Cooper et
al., 2000). To achieve, management runs the activities of its people in the operation of
the business according to pre-determined goals and objectives. Cooper et al. (2000)
also stated that, behavioral management deals with the attitude and actions of
employee behavior which ultimately impacts on success.

Cost control work should enhance the efficiency of management and if
necessary, should result in action being taken to reduce the cost for profit purposes
and to prevent fraud and efficiency (Dury, 1985). Some of these benefits are as
follows: (1) a simple control can be expressed over all operation from the purchase of
goods to account for sales; (2) an efficient cost control with reveal possible sources of
economy and result in a rational utilization of material and labor; (3) cost control
makes policy decisions by management very easy; (4) it ensures adequate
production and prevent over stocking of material.
According to Hilton (2008), cost management system should provide the
means to develop accurate product or service costs. This requires that the system be
designed to use cost driver information to trace costs to products and services. A cost
management system should help managers comprehend business processes and
organizational activities. Managers of a company desiring to implement new
technology or production systems must recognize what costs and benefits will flow
from such actions; these assessments can be made only if the managers understand
how the processes and activities will differ after the change.
The importance of having the knowledge of cost management system
related terms will help the company provide an understanding the concept of cost
management system. These will help the business understand whether the current
cost management system has been properly employed to the business.

e. Significance of the Research
The research will contribute to the improvement of the cost management
system that will help develop an appropriate costing for the production of the
company:
To AVE Coconut Products, this will provide as a foundation for the proper
costing of products and improvement of the current cost management system of the
company.
To other manufacturing companies, this research will be used as a basis
for companies as they will utilize the findings of the study for improving their own cost
management system.
To the government, the results of the research shall provide an accurate
computation of income. Through this, proper taxes can be determined by the
respective agencies.
To suppliers, this will be a significant guide in deciding the number to be
supplied and determining the correct pricing of the products.

To managers and employees, the findings of the research will help in
budgeting for the overall factors of production of the company.
To future researchers, this will serve as their guide on continuing the
same study and this will also assist the future researchers to conduct further study.
f. Statement of Desired Outcomes
The researchers are expecting the following in conducting the research about the
Analysis of the Cost Management System of AVE Coconut Products:
 Be able to know the business profile of AVE Coconut Products.
 Be able to identify the strength and weaknesses of the current cost
management system
 Be able to determine if there is an association between planning,
budgeting, controlling and product costing.
 Be able to recommend improvements on the current cost management
system.
g. Major Final Output

The researchers were able to identify the strength and weaknesses of the
cost management system strength and weaknesses of the current cost management
system for optimization of costs in terms of planning, budgeting, controlling and
product costing. The alternative hypothesis is accepted indicating that there is a
significant association between planning, budgeting, and controlling of costs and
product costing. Overall, the cost management system is adequate for the company.
There is clearly some good financial practice in place, but still plenty of room for
improvement. Low weighted mean sections require immediate attention from
managers.
h. Target Beneficiaries of Research Results
Target Beneficiaries Total

1. AVE Coconut Products 1
2.Management and employees 10-20
3. Other manufacturing companies Uncertain
4. Future researchers Uncertain
The target beneficiaries of the study are the AVE Coconut Products
including its management and employees, other manufacturing companies and future
researchers. AVE Coconut Products and its management and employees will be
benefited because the study is primarily focused on the company’s cost management
system. The research will provide other companies a basis for similar improvements
regarding their own cost management system. For future researchers, the study will
serve as guide for further studies to improve upon the data that were acquired during
the conduct of the study.
i. Definition of Terms
Actual Cost. An actual amount paid or incurred, as opposed to estimated
cost or standard cost.
Administrative Expense. An expense incurred by an organization in
controlling and directing but not directly identifiable with financing, marketing or
production operation expense.
Budget. An estimate of costs, revenues, and over a specified period,
reflecting a reading of future financial conditions and goals.
Budgeted Cost. An expense that has been planned for in advance and for
which funds are typically side aside by business.
Chi-square test is used to determine whether there is a significant
association between the variables.
Control. The process of monitoring the company’s operations and
determining whether the objectives identified in the planning process are being
accomplished.
Cost. An amount that has to be paid or given up in order to get something.

Cost Accounting. Measures, analyzes, and reports financial and
nonfinancial information relating to the costs of acquiring or using resources in an
organization.
Cost budgeting. Consists of collecting the estimated costs of individual
activities or work items to determine an authorized cost baseline.
Cost Control. The application of procedures to monitor expenditures and
performance against progress of projects or manufacturing operations; to measure
variance from authorized budgets and allow effective action to be taken to achieve
minimum costs.
Cost estimate. A quantitative prediction of the actual cost expected to
occur for various resources throughout the project/product.
Cost Management. The process of effectively planning and controlling the
costs involved in a business.
Cost Reduction. The process of looking finding and removing
unwarranted expenses from business to uptrend profits without having a negative
impact on product.
Direct Material. All items such as raw materials, standards and
specialization parts, and sub-assemblies required to assemble or manufacture a
product.
Direct Labor. Include all labor costs directly involved in the production of
goods or services for specific work performed on products that can be conveniently
and economically traced to end products.
Expenditure. Payment of cash or cash-equivalent for goods or services, or
a charge against available funds in settlement of an obligation.
Indirect Labor. A cost of work performed by people which is an indirect
cost or aggregate of such costs.
Indirect Materials. A cost of materials or supplies used which is an indirect
cost or an aggregate of such costs.
Likert Scale is a statistical method ascribing quantitative value to
quantitative data, to make it amendable to statistical analysis. The numerical value is
assigned to each potential choice and a mean figure for all the responses is
computed at the end of the evaluation or survey.
Manufacturing. The process of converting raw materials into finished
goods that meet a customer's expectations or specifications.
Marketing or Selling Expense. Include all cost necessary to secure
customer orders and get the finished product or service into the hands of the
customer.
Overhead costs, often referred to as overhead or operating expenses,
refer to those expenses associated with running a business that can’t be linked to
creating or producing a product or service. (indirect expense, indirect labor cost or
indirect material cost)
Planning. Management function involving formulation of one or more
detailed plans to achieve demands with the available resources.
Product. Any output that has a positive total sales value (or an output that
enables an organization to avoid incurring costs.)
Product Cost. Sum of the cost assigned to a product for a specific
purpose.
Production. Acquiring, coordinating, and assembling resources to produce
a product or deliver a service.
Revenue is the income that a business has from its normal business
activities.
j. Scope and Limitation of the Study
The study is concerned in describing and in the analysis of the strengths
and weaknesses of the current cost management system for optimization of costs
and in addition, it also tackles the association between planning and controlling the
budget and product costing of AVE Coconut Products. The data gathered were based
on the authorized persons of AVE Coconut Products. The respondents are the
owner/CEO of the company, manager, accountant, operations officer and finance
officer. The study was conducted throughout February to November 2018.
The scope of this study is the information on the activities conducted by the
company regarding the cost management. The questions used to gather data are
formulated by the researchers through the application of their technical knowledge in
the field of cost management and were validated by several CPAs.
3. Description of Method or Approach
a. Research Design/Research Instrument/Data Gathering Procedures
The research objectives posted at the beginning of the study were
answered through a descriptive research design. The design is concentrated on
analyzing the current cost management system of the company. Its other purpose
were to identify the strengths and weaknesses of the current cost management
system for optimization of costs in terms of planning, budgeting, controlling and
product costing and to determine if there is an association among them.
In this study, the researchers used primary data. A survey was used in
primary data gathering. The researchers used the survey questionnaire as the main
instrument in primary data collection. This questionnaire is composed of two parts
that was answered by the people who are responsible for the cost management of
AVE Coconut Products. The first part of the questionnaire refers to the business
profile of the company in terms of nature and size of the business, years of existence,
type of products and capitalization. The second part is composed of the statements
pertaining to the current cost management system in optimizing costs in terms of
planning, budgeting, controlling and product costing. The researchers used a five-
point Likert Scale for the company’s evaluation. A scale of 5 will be used for Strongly
Agree and a scale of 4 represents for Agree. A scale of 3 represents Neither agree
nor disagree. For scale 2 represents for Disagree and a scale of 1 is used for
Strongly Disagree.
b. Description of Respondents
In choosing the company, the researchers chose from several
manufacturing companies situated in Quezon Province for accessibility. The
researchers also considered whether the company is willing to accommodate the
questions prepared by the researchers and is willing to release internal information
about the business. In order to acquire substantial information, the key informants
required are the owner, accountant, overall manager, operations manager and the
finance officer of AVE Coconut Products who possess relevant information regarding
the cost management system of the company.
c. Sampling Design and Procedures

The study aims to analyze the cost management system of AVE Coconut
Products. whereas the matter of the study is very technical, the researchers decided
to use judgmental sampling. Since judgmental sampling involves selecting
respondent/s believed to be in the best position most knowledgeable to provide the
necessary information, it was applied to choose a company and to select the
respondents from the company itself. From the company, the respondents are the
following: the owner, accountant, overall manager, operations manager and the
finance officer.
d. Hypotheses
For the application of chi-square test, these are the hypotheses:

Ho: There is no significant association between planning, budgeting and controlling
of costs and product costing.

Ha: There is a significant association between planning, budgeting and controlling of
costs and product costing.
e. Data analysis plan
Weighted mean is the average wherein every quantity to be average has a
corresponding weight. These weights represent the significance of each quantity to
the average. To compute for the weighted mean, each value must be multiplied by its
weight. Products should then be added to obtain the total value. The total weight
should also be computed by adding all the weights. The total value is then divided by
the total weight.
The weighted mean formula was used to identify the strengths and
weaknesses of the current cost management system for optimization of costs in
terms of planning, budgeting and controlling and product costing. Weightings are the
equivalent of having that many like items with the same value involved in the
average. Statistically, the weighted mean is calculated using the following formula:
5 f 5  4 f 4  3 f 3  2 f 2  1 f1
Wm 
n
Where: Wm = weighted mean
f = to the frequency
n = number of respondents
INTERVAL SCALE POINT SCALE VERBAL DESCRIPTION
1.00 – 1.75 1 Strongly Disagree
1.80 – 2.59 2 Disagree
2.60 – 3.39 3 Neither agree nor disagree

3.4 – 4.19 4 Agree
4.20 – 5.0 5 Strongly Agree
A chi-square test is used to determine whether there is a significant
association between the variables. It was the statistical used to determine whether
there is an association between planning, budgeting, controlling of costs and product
costing.
Formula:
Degrees of freedom. The degrees of freedom (DF) is equal to:
Where r is the number of levels for one categorical variable, and c is the number of
levels for the other categorical variable.
Expected frequencies. The expected frequency counts are computed separately for
each level of one categorical variable at each level of the other categorical variable.
Compute r*c expected frequencies, according to the following formula.

Where Er,c is the expected frequency count for level r of Variable A and level c of
Variable B, nr is the total number of sample observations at level r of Variable A, nc is
the total number of sample observations at level c of Variable B, and n is the total
sample size.
Test statistic. The test statistic is a chi-square random variable (Χ2) defined by the
following equation.
Where Or,c is the observed frequency count at level r of Variable A and level c of
Variable B, and Er,c is the expected frequency count at level r of Variable A and level
c of Variable B.
P-value. The P-value is the probability of observing a sample statistic as extreme as
the test statistic.
f. Conceptual Framework
The researchers illustrated the independent, moderating and dependent
variables to analyze the cost management system of AVE Coconut Products.
For the independent variable, the researchers considered the planning,
budgeting and controlling of costs. The moderating variable is the practices involved
in planning, budgeting and controlling of costs which are mentioned in the research
instrument utilized by the researchers. The cost management system is the
dependent variable.
4. Results and Discussion

Relevant data are presented tabular form with their corresponding analysis
and interpretation. The research findings are presented following the sequence stated
in the purpose of the research.

There are 5 individuals who are responsible for the cost management
system of AVE Coconut Products and the researchers obtained 5 respondents;
therefore, achieving a 100% response rate.
PART I. BUSINESS PROFILE

The name of the business is AVE Coconut Products which
manufacture/export different types of coconut products like Organic Virgin Coconut
Oil, Virgin Coconut Oil Cosmetic Grade, Refined Coconut Oil, Organic Culinary Virgin
Coconut Oil - natural aroma, Organic Coconut Vinegar, etc. The business was
established in 2009 and conducting its business for almost 10 years and the capital
invested was less than P 100,000.00. Regarding cost management, the owner,
accountant, overall manager, operations manager and finance officer is responsible.
The company did not disclose its annual revenue and expenses; number of
employees and trainees.
PART II.
Planning
Table 1
VERBAL
5 4 3 2 1 WAM
DESCRIPTION
Planning
1. Address and illustrate the business itself.

Consider including a mission & vision
5 0 0 0 0 5.0 Strongly Agree
statement with objectives detailing how the
business satisfies the need in the market.
2. The business employs a strategy on how best
to reach the company goals.
3. When planning the budget, all departments,
board and advisers of the business utilize 4 0 1 0 0 4.60 Strongly Agree
their expertise and experiences.
4. The management considers the suggestions
of every team member in the planning 4 1 0 0 0 4.80 Strongly Agree
process.
5. The management is able to identify the
business’ strengths, weaknesses, and
opportunities at the beginning of the planning
process.
6. The management identifies the financial and
non-financial measures that will be used to 4 0 0 1 0 4.40 Strongly Agree
assess the viability of the strategy.
7. The management calculates the full cost of
resources needed to estimate a budget.
8. The current status of inventory of the current
resources – capital, raw material, technology, 3 1 0 1 0 4.20 Strongly Agree
and human resources are up to date.
9. The business considers new products that
could be introduced to the current market. 5 0 0 0 0 5.0 Strongly Agree
VERBAL
5 4 3 2 1 WAM
DESCRIPTION
Planning
10. Management sets criteria that will be used to
evaluate a new product.
11. Marketing department identifies its target
market and customers.
12. The current product market areas are
recognized in which emphasis would be 3 2 0 0 0 4.60 Strongly Agree
placed.
13. The finalized plan is approved by the owner or
the board. 4 1 0 0 0 4.80 Strongly Agree
The respondents strongly agree that the business is capable to address
itself with a mission & vision statement that details on how the business satisfies its
needs and how it is able to plan for the introduction of new products in the market as
it yielded a highest weighted average mean of 5.0. The respondents also strongly
agree that the business employs strategies that help best reach company goals, take
into consideration the suggestions of every team member in the planning process
(4.80). They also strongly agree that the business is able to identify the strengths,
weaknesses, and opportunities at the planning process and how its marketing
department is able to identify its target market; as well as the finalized plan is
approved by the owner or the board. With a yield of a weighted average mean of
4.60, the respondents strongly agree that when they utilize the expertise and
experiences of all the departments, board and advisers of the business. They also
strongly agree that the business sets criteria when evaluating a new product as well
as recognizing current product market areas which emphasis should be placed.
Respondents strongly agree as well in its ability to identify financial and non-financial
measures that will be used in assessing a viable strategy and in calculating the full
cost of resources needed to estimate a budget. The lowest weighted average mean
of 4.20 shows that the respondents strongly agree that the current status of inventory
of the current resources – capital, raw material, technology, and human resources are
up to date.
Table 2
Budgeting
VERBAL
5 4 3 2 1 WAM
DESCRIPTION
Budgeting
1. Budgets are prepared in good time for all the
1 0 4 0 0 3.40 Agree
costs of running the company.
2. The business can prepare an expected budget
for the following year.
3. Previous sales and expenditures data are
used as basis in the preparation of the budget
4. Company operation budgets are based on the
1 3 1 0 0 4.0 Agree
costs of planned activities.
5. The budget includes educated estimates to
provide a precise plan for the business’ 4 1 0 0 0 4.80 Strongly Agree
revenues and expenses.
6. A separate budget is prepared for core costs Neither agree
1 0 0 4 0 2.60
(overheads). nor disagree
7. After the estimates are created, budget is
finalized and reviewed by the management.
8. If in need of outside funding, sources and uses
of funds requested are properly identified.
VERBAL
5 4 3 2 1 WAM
DESCRIPTION
Budgeting
9. Company budgets are approved by the Board
of Directors /CEO.
10. The prepared budget includes allowances for
2 0 3 0 0 3.80 Agree
any unplanned expenditures.
11. Actual expenses exceed budgeted expenses. Neither agree
1 0 1 3 0 2.80
nor disagree
12. The trend in the company’s sales for the past
three years is considered in preparing the 2 0 3 0 0 3.80 Agree
sales budget.
13. Administrative, Finance and Operation
personnel are involved in setting budgets.
14. Budget worksheets include explanatory notes Neither agree
0 0 5 0 0 3.0
and clear calculations. nor disagree
15. All planned operational costs are adequately
0 5 0 0 0 4.0 Agree
funded.
In regard to budgeting, the respondents strongly agree that the company
budgets are approved by the Board of Directors /CEO and that Administrative,
Finance and Operation personnel are involved in setting budgets as evidenced
obtaining a highest weighted average mean of 5.0. They also strongly agree that the
budget includes educated estimates to provide a precise plan for the business’
revenues and expenses (4.80). The ability of the business to prepare an expected
budget for the following year, that their previous sales and that expenditure data are
used as basis in the preparation of the budget, and after the estimates are created,
that the budget is finalized and reviewed by the management are strongly agreed
upon by the respondents with a weighted mean of 4.60. The respondents also
strongly agreed that if in need of outside funding, sources and uses of funds
requested are properly identified; provided with a weighted mean of (4.40). The
respondents only agree that company operation budgets are based on the costs of
planned activities and all planned operational costs are adequately funded (4.0) and
that the prepared budget includes allowances for any unplanned expenditures and
the trend in the company’s sales for the past three years is considered in preparing
the sales budget (3.80). Having a weighted average mean of 3.40, they also agree
that the budgets are prepared in good time for all the costs of running the company.
The respondents neither agree nor disagree with the following activities; that the
budget worksheets include explanatory notes (3.0) and clear calculations, actual
expenses exceed budgeted (2.80) and a separate budget is prepared for core costs
(2.60).
Table 3
Controlling
VERBAL
5 4 3 2 1 WAM
DESCRIPTION
Controlling
1. There is an overstatement or understatement Neither agree
1 1 1 2 0 3.20
in the budget that requires control. nor disagree
2. All related activities are supervised by the
management.
3. The person in charge of cost management
investigates the reasons for cost variations
and takes action if any discrepancies are
detected.
4. The uses of resources are monitored properly. 3 1 0 1 0 4.20 Strongly Agree
5. Non-manufacturing expenses are reduced
whenever possible. 3 1 0 1 0 4.20 Strongly Agree
6. The business seeks available alternatives that

will reduce manufacturing cost. 4 0 1 0 0 4.60 Strongly Agree
7. Cash is kept safely in a locked cashbox or Neither agree
0 0 5 0 0 3.0
safe, in the custody of one individual. nor disagree
8. All cheques are signed by at least two
authorized signatories.
9. There is a written policy detailing who can
Neither agree
authorize expenditure of different types or 0 1 0 5 0 2.80
nor disagree
value.
10. All transactions are properly authorized. 5 0 0 0 0 5.0 Strongly Agree
11. Different steps in the procurement process,
(e.g. ordering, receiving and paying) are 0 5 0 0 0 4.0 Agree
shared among different people.
12. Expenses claims for employees advances are
Neither agree
checked by the same person who authorized 0 0 5 0 0 3.0
nor disagree
the advance.
13. Salaries (including advances and loans
Neither agree
deductions) are checked each month by a 0 0 5 0 0 3.0
nor disagree
senior manager.
VERBAL
5 4 3 2 1 WAM
DESCRIPTION
Controlling
14. All fixed assets (ex. vehicles, computers,
Neither agree
equipment) of the company are insured and 0 0 5 0 0 3.0
nor disagree
controlled using a fixed assets register.
15. There is an approved policies and procedures
manual in place which is relevant to the 0 5 0 0 0 4.0 Agree
company.
As to controlling, it is strongly agreed upon by the respondents that all
cheques are signed by at least two authorized signatories and that all transactions
are properly authorized are supported having a weighted average mean of 5.0. The
respondents also strongly agree that business seeks available alternatives that will
reduce manufacturing cost (4.60), that all related activities are supervised by the
management (4.40), that the person in charge of cost management investigates the
reasons for cost variations and takes action if any discrepancies are detected, and
that the uses of resources are monitored properly and non-manufacturing expenses
are reduced whenever possible (4.20).

Different steps in the procurement process are shared among different
people and there are approved policies and procedures manual in place which is
relevant to the company is agreed upon by the respondents with a weighted average
mean 4.0.The respondents, however neither agree nor disagree that there is an
overstatement or understatement in the budget that requires control (3.2), that cash is
kept safely in a locked cashbox or safe, in the custody of one individual, that
expenses claim for employees advances are checked by the same person who
authorized the advance and salaries are checked each month by a senior manager,
and all fixed assets of the company are insured and controlled using a fixed assets
register each one (3.0), and there is a written policy detailing who can authorize
expenditure of different types or value (2.8).
Table 4
Product Costing
VERBAL
5 4 3 2 1 WAM
DESCRIPTION
Product Costing
Product Costing
1. Materials are classified as direct or indirect. 3 1 1 0 0 4.40 Strongly Agree
2. Labor is classified as direct or indirect. 3 2 0 0 0 4.60 Strongly Agree
3. Indirect costs are part of the overhead costs. 3 2 0 0 0 4.60 Strongly Agree
4. Total cost of the product includes: 3 1 1 0 0 4.40
1. Direct material costs
Strongly Agree
2. Direct labor costs
3. Overhead costs
5. Product costs are developed through 1 1 1 0 2 2.80
Neither agree
recommendations by the operation and
nor disagree
marketing departments.
6. General and administrative expenses are 4 1 0 0 0 4.80
Strongly Agree
included in the total cost.
7. Some components that should be part of the 2 1 0 0 2 3.20 Neither agree
product cost are considered expenses. nor disagree
The respondents strongly agree that general and administrative expenses
should be included in the total cost and selling price of the product must comprise of
total cost and some percentage of mark-up; labor should be classified as direct or
indirect and indirect costs should be part of the overhead costs having the highest
weighted means of 4.80 and 4.60, respectively. They also strongly agree that total
cost of the product should include direct material costs, direct labor costs and
overhead costs and material should be classified as direct or indirect with a weighted
mean of 4.40. On the other hand, the respondents neither agree nor disagree that
some components of the product cost are considered expenses and the product
costs should be developed through recommendations by the operation and marketing
departments; obtaining the lowest weighted means of 3.20 and 2.80, respectively.
 Association between planning, budgeting, controlling of costs and product
costing:
 Computing for the chi-square manually would be exhausting since there are
51 variables involved. The computation was software-aided and resulted in a
p-value of 0.000.
 The alternative hypothesis is accepted and the researchers concluded that
there is a significant association between planning, budgeting, and controlling
of costs and product costing.
5. Conclusions
Based on the gathered data and findings of the study, the following
conclusions were derived:
1. The strengths of the cost management system in terms of planning are the
ability of the business to address itself with a mission and vision statement
that details on how the business satisfies its needs and how it is able to plan
to introduce new products to the market. Employing strategies that help to
reach the company goals, taking into consideration the suggestions of every
team member in planning, identifying the strengths, weaknesses, and
opportunities at the planning process and how its marketing department is
able to identify its target market; as well as the finalized plan is approved by
the owner or the board are considered also as strengths. It depicts that AVE
Coconut Products is able to align its’ company goals with the plans and be
able to become innovative. Being able to know the business itself and having
proper management in every department helps the company to be effective
on planning.
However, AVE Coconut Products is shown to be lacking in the financial and
non-financial measures that are used in identifying the viability of a business
strategy and in calculating the full cost of resources in the estimation of the
budget and the current status of current resources such as capital, raw
material, technology, and human resources are not up to date. This
represents as weaknesses of the cost management system.
2. Regarding budgeting, the following activities are considered as strengths: the
company budgets being approved by the CEO/Board of Directors, involving
the personnel of the administrative, finance and operations departments in
setting the budget and including educated estimates that provide a precise
plan regarding revenues and expenses in the budget. In addition, when the
actual expenses did not exceed budgeted expenses is also considered as
strength. It shows that proper authorization, active participation of
departments and educated estimates help the business to prepare an
accurate budget.
The apparent weakness in budgeting is that the business is unable to
prepare a separate budget needed for core costs. This may cause a
significant problem when the actual overhead costs exceed those of the
budgeted costs more so when the management does not prepare a budget
for these kinds of expenses. Budgeted worksheets are also lacking as
management is indifferent toward providing explanatory notes and clear
calculations for the budget which can help the management improve
decision making; as the information contained in the worksheets is
condensed for the management to easily comprehend.
3. In terms of controlling, the business is able to implement good control on its
costs with regard to controlling checks and authorizing transactions as it
requires two authorized signatories. This means that the business is able to
keep track of checks and transactions that it has accumulated. The
management is also determined in reducing the costs in order to increase its
profits by actively seeking alternatives in reducing manufacturing costs.
The business having no written policy detailing on who can authorize
expenditures of different types or value indicates a weakness in controlling.
This can lead to poor control on how much would be spent on a certain
expenditures, thus costing the business valuable resources as the
individuals with authority is not properly identified by the management and it
would be difficult to identify the who authorized a transaction and hold them
accountable. The management being indifferent towards the internal control
regarding on the responsibility of safekeeping cash and managing the
salaries and advances of employees are also considered as weaknesses on
the cost management system of the company. This may pose a problem
when managing their cash as it would be difficult as to hold accountable in
the safekeeping of its cash. It would be beneficial if further attention was

given as it would help the management keep better track of its payroll to be
given to its employees to eliminate any possible discrepancies or conflicts of
interest among its employees.
4. As to product costing, being able to properly identify the costs to be included
in the total cost and set a selling price that comprises both total cost along
with a percentage mark-up and being able to distinguish product costs from
expenses which in effect avoid any discrepancies on its product costing are
considered to be the strengths of the cost management system.
The business, however, is indifferent in considering the recommendations of
operation and marketing departments in the development of product costs
that shows as a weakness on the product costing. This passes up the
opportunity for the business to acquire input in terms for costing as the
responsible departments can provide valuable feedback for management to
consider as these departments possess knowledge in their respective fields
that can further improve the product costing decisions of the business.
5. Being able to identify the strength and weaknesses of the cost management
system strength and weaknesses of the current cost management system for
optimization of costs in terms of planning, budgeting, controlling and product
costing. The alternative hypothesis is accepted indicating that there is a

significant association between planning, budgeting, and controlling of costs
and product costing. Overall, the cost management system is adequate for
the company. There is clearly some good financial practice in place, but still
plenty of room for improvement. Low weighted mean sections require
immediate attention from managers.
6. Recommendations
After the analysis of the findings and deriving of conclusions, the
researchers come up with the following recommendations:

1. AVE Coconut Products must continue conducting and improve those
activities that represents as strengths of its cost management system in optimization
of costs in terms of planning, budgeting, controlling and product costing. These
strengths may help them to achieve an effective cost management system that can
help the business to manage all costs and related activities.

2. AVE Coconut Products may discuss how the weaknesses of its cost
management system can be improved. They must give attention to those activities
that the business is lacking and implement the necessary action in order to convert
the weaknesses into strengths.

AVE Coconut Products should properly address the various activities that
they are indifferent from. Improving these said, activities can help in developing these
the cost management system.

3. The various departments of AVE Coconut Products should improve upon
the communication each other to better relay and disseminate information among
themselves.
5. For future researchers, it is suggested to interview more respondents
(companies) and regarding the research instrument, make additional activities that
relate to cost management. Propose possible improvements to develop a more
effective cost management system.
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Appendices
A. Curriculum Vitae of the Researcher
Aime Jane P. Mediarito

7205 San Agustin St., La Milagrosa Subdivision, Brgy. 9, Lucena City
Contact No.: 09158604561
Email: maimejane@yahoo.com
PERSONAL
INFORMATION
Date of Birth: July 20, 1999 Place of Birth: Lucena City
Sex: Female Status: Single
Nationality: Filipino Religion: Roman Catholic
Language Spoken: Tagalog, English
EDUCATIONAL
BACKGROUND
 Tertiary Education: Manuel S. Enverga University Foundation

Address: University Site, Brgy. Ibabang Dupay, Lucena City
Degree Program: Bachelor of Science in Accountancy
Estimated Year to Graduate: 2019
 Secondary Education: Quezon National High School

Address: ML Tagarao St. Ibabang Iyam, Lucena City
Year Graduated: 2015
 Elementary Education: Lucena East 3 Elementary School

Address: Barangay 10, Lucena City
ORGANIZATIONAL
AFFILIATIONS
 National Federation- Junior Philippine Institute of Accountants
Active Member
2015-2018
 Quezon Federation- Junior Philippine Institute of Accountants
Active Member
2015-2018
 Enverga University- Junior Philippine Institute of Accountants
Active Member
2015-2018
AWARDS AND RECOGNITIONS
 Participant in the 24th Philippine Statistics Quiz Regional Championship

DA - STIARC, Marauoy, Lipa City
November 10, 2015
 2015 Philippine Statistics Quiz Provincial Elimination, 4th Place

Lucena City
October 27, 2015
 Participant in 3rd Armando A. Ordinanza Basic Accountancy Challenge

Manuel S. Enverga University Foundation Lucena
September 24, 2015
 College Entrance Test Topnotcher, Rank 2

July 3, 2015
 College Entrance Test Topnotcher

June 24, 2015
SEMINARS AND TRAININGS

ATTENDED
 Road to Success: Building a Firm Foundation for Your Business
Manuel S. Enverga University Foundation, Lucena City
April 27, 2017
 1st Regional Accounting Summit

March 26, 2016
 Integrated Review and Orientation to National Institute of Accounting

Technicians
October 21, 2016
 Social Media: An Avenue of Responsible Human Expression

February 19, 2016
 The Relevance Of Social Sciences To Business

September 28, 2016
 Career Prospects for the 21st Century Business Graduates

CODEB IV-A 9th Annual Business Students' Summit
September 4, 2015
 Volunteerism is a Vital Tool in Achieving Global Competitiveness

July 3, 2015
SKILLS
 Accurate keyboard skills
 Proficient in english
 Competent leader and capable of working individually or as a group
 Have good interpersonal skills
 Computer literate and advance technology skills
 Eager to learn
 Hard working
 Can work under pressure
 Can work independently or in team
 Well Organized
 NC III Bookkeeping Passer
CHARACTER REFERENCES
 Paz L. Bobadilla
Former Dean, CBA Department
09195968953
 Mrs. Remedios M. Cabungcal

Faculty
Quezon National High School
 Mrs. Lorena A. Ibasco

Faculty
Quezon National High School
Via Nicole H. Rodil

Purok 2, Brgy. Duhat, Padre Burgos, Quezon
Contact No.: 09123241164
Email: viarodil@gmail.com
OBJECTIVES
To enhance my knowledge with the intention of securing a professional career with

opportunity for challenges and career advancement, while gaining knowledge of new
skills and expertise.
PERSONAL
INFORMATION
Date of Birth: August 30, 1998 Place of Birth: Silang, Cavite
Sex: Female Status: Single
EDUCATIONAL
BACKGROUND
 Secondary Education: Hinguiwin National High School

Address: Brgy. Hinguiwin, Padre Burgos, Quezon
 Elementary Education: Padre Burgos Central School

Address: Brgy. Burgos, Padre Burgos, Quezon
ORGANIZATIONAL
AFFILIATIONS
Active Member
2015-2018

Active Member
2015-2018

Active Member
2015-2018
 Junior Financial Executives Institute of the Philippines

Active Member
2017-2018
 Dean’s Lister
College of Business and Accountancy and Kappa Delta Omega Sorority
2015-2016, 2016-2017
 CBA Dean’s Cup 2nd Place
College of Business and Accountancy and EU-JPIA

September 28, 2017
 The EU-JPIA Awards Selfie Queen of the Year 3rd Place
Enverga University Junior Philippine Institute of Accountants

March 5, 2016
 JPIA Days Percipi Competition Participant

March 4, 2016
 National Certificate III in Bookkeeping Passer
Technical Education and Skills Development Authority

2015
 Entrance Scholar 1st semester

The Honor Society of Lambda Sigma
2015-2016
 JPIA Days Periodikit Competition 3rd Place

July 24, 2015
 3rd Armando A. Ordinanza Basic Accounting Challenge Participant

September 24, 2015

ATTENDED
 Drug Prevention Seminar
AEC Little Theater, MSEUF, Lucena City

November 20, 2018
 Career 101 GEARing up for the World of Work
University Gymnasium, Lucena City

October 24, 2018
 SK Mandatory Training Program

National Youth Commission, Department of the Interior and Local Government,
Local Government Academy
Queen Margarette Hotel Main, Domoit, Lucena City
May 23, 2018
 20th General Assembly

National Federation of Junior Philippine Institute of Accountants
Region IV Council
Recoletos 4th Centennial Gymnasium, San Roque, Cavite City
October 1, 2017
 PICPA Seminar
Philippine Institute of Certified Public Accountants
St. Anne College of the Pacific Gymnasium, Lucena City
July 29, 2017

Technicians
RBA Hall
October 21, 2016
 CALABARZON Meet the CPA Examiners Forum

National Association of CPAs in Education
University Gymnasium, MSEUF, Lucena City
September 10, 2016
 Social Media

EMRC 1, AEC Building, MSEUF, Lucena City
February 19, 2016
 Rodolfo B. Abadilla Lecture Series XV

RBA Hall, CET Building, MSEUF, Lucena City
September 28, 2015
 4th Tutorial Series 2 – Basic Accounting & College Algebra

College of Business and Accountancy and CBA Academic Circle
Office Simulation Room, CET Building, MSEUF, Lucena City
September 5, 2015
 CODEB IV-A 9th Annual Business Students’ Summit

Council of Deans and Educators of Business Region IV-A
Manuel S. Enverga University Foundation Gym, Lucena City
September 4, 2015
SKILLS
 Good communicating skills
 Ability to work in a team
 NC III BookkeepIng Passer

09195968953
 Mr. Justiniano Santos
Faculty, CBA Department

 Mrs. Lorena P. Ilag
Guidance Counselor
Hinguiwin National High School
09168904824
EVELYN T. URSOLINO
Brgy. Guinhawa Quezon, Quezon
Contact No.:09561244360/09287937674
Email: eveursolino22@gmail.com
PERSONAL
INFORMATION
Date of Birth: July 06, 1985 Place of Birth: Alamada, Cotabato
Sex: Female Status: Married
Language Spoken: Bisaya,Tagalog, English,
EDUCATIONAL
BACKGROUND

 Tertiary Education: Southern Christian College

Address: Midsayap North Cotabato
2014-2016
 Tertiary Education: Southern Christian College

Address: Midsayap North Cotabato
Degree Program: Junior Secretarial Course
 Secondary Education: Alamada National High School

Address: Alamada, Cotabato
 Elementary Education: Macabasa Elementary School

Address: Macabasa Alamada, Cotabato
ORGANIZATIONAL
AFFILIATIONS
 National Institute of Accounting Technician
Member (Certified Bookkeeper)
2016- Present

Active Member
2014-Present

Active Member
2015-Present

Active Member
2015-Present
 Junior Financial Executives Institute of the Philippines

Active Member
2017-Present
 Rotaract Club of Lucena University District

Active Member
2017-Present
 Dean’s Honor List

College of Business and Accountancy-Kappa Delta Omega Sorority
S. Y 2016-2018
 College Scholar
Manuel S. Enverga University Foundation-Office of Student Affairs
2nd Semester S.Y, 2016-2017
 Dean’s Honor List

College of Business and Accountancy-Kappa Delta Omega Sorority
1st semester 2015-2016
 Certified Bookkeeper
National Institute of Accounting Technicians
June 13, 2016-Present

ATTENDED
 Drug Prevention Seminar
AEC Little Theater, MSEUF, Lucena City
November 20, 2018
 Career 101 GEARing up for the world of Work

University Gymnasium, Lucena City
October 24, 2018
 1st JFINEX CONFERENCE 2018 FUTURE BUSINESS & FINANCE LEADERS

Mall of Asia Arena
September 17, 2018
 Data Analysis and Interpretation Seminar year 4

MSEUF Research Club
AEC little Theater, MSEUF, Lucena City
April 4, 2018
 Scholars and Leaders as Navigators of Success of Today’s Generation

The Honor Society of Lambda Sigma
AEC little Theater, MSEUF, Lucena City
October 28, 2017
 Road to Success: Building a Firm Foundation for your Business

MSEUF, College of Business and Accountancy
RBA Hall, CET Building, MSEUF, Lucena City
April 27, 2017
 MSEUF Research and Innovation Day 2017

University gymnasium, Lucena City
May 12-13, 2017
 CALABARZON Meet the Examiner’s Forum

National association of Certified Public Accountant in the Education
MSEUF gymnasium, Lucena City
September 16, 2016

Technicians
Rodolfo Abadilla Hall MSEUF, Lucena City
October 21, 2016
SKILLS
 Able to work under pressure

 Ability to meet deadlines
 Responsible for all task assigned
 Accurate keyboarding skills
 Certified Bookkeeper (NIAT)
09195968953
 Nathalia S. Hapa
Accounts Receivables Supervisor
Fronteo Financial Company
+639778442802
Exequiel M. Zoleta
67 Rizal St. Brgy. Castillo Pagbilao, Quezon
Contact No.: 09279537348
Email: exequiel.maryhill@gmail.com
PERSONAL
INFORMATION
Date of Birth: January 01, 1996 Place of Birth: Lucena City
Sex: Male Status: Single
EDUCATIONAL
BACKGROUND
University of Sto.Tomas
Address: Sampaloc, Manila
Degree Program: Bachelor of Science in Electrical Engineering
2012 - 2015
- Secondary Education: Maryhill College

Address: Lucena City
 Elementary Education: Maryhill College

Address: Lucena City
ORGANIZATIONAL
AFFILIATIONS
Active Member
2015-2018

Active Member
2015-2018

Active Member
2015-2018

 Career Service Professional Eligibility
Career Service Examination (Professional)
2016
 JPIA Day Celebration Poster Making Contest, 1st Place

2016
 QFEST Poster Making Contest, 2nd Place

Manuel S. Enverga University Foundation Candelaria
September 24, 2015

ATTENDED
 Road to Success: Building a Firm Foundation for Your Business
April 27, 2017
 1st Regional Accounting Summit

March 26, 2016

Technicians
October 21, 2016
 Social Media: An Avenue of Responsible Human Expression

February 19, 2016
 The Relevance Of Social Sciences To Business

September 28, 2016
SKILLS
 Proficient in english
 Competent leader and capable of working individually or as a group
 Have good interpersonal skills
 Computer literate and advance technology skills
 Eager to learn
 Hard working
 Can work under pressure
 Can work independently or in team
 Well Organized
 NC III Bookkeeping Passer
 Dean Paz L. Bobadilla
Dean, CBA Department

09195968953
 Mr. Jacinto A. Piñon
Municipal Councilor
Pagbilao, Quezon
09238590225
 Mrs. Cristina E. Bosque
Municipal Mayor
Polilio, Quezon
09178216861
B. Research Instruments
PART I
BUSINESS PROFILE
Directions: Write the answers on the space provided. Put a checkmark (/) on the box
corresponding to your answer.
Name of Business:
1.1. What is the nature of the business? Size of the business?

:
1.2. How and when was the business established?
1.3. How long has your company been in business?

Less than one (1) year to 1 year Two (2)
Two (4) Five (5)
Three (3) Six (6) or more
1.4. How much was the capital invested?

Less than P 100,000.00
P 100,000.00 – P 500,000.00
P 501,000.00 – P 999,999.00
P 1,000,000.00 – P 2,000,000.00
More than P 2,000,000.00
1.5. Annual Revenue and Expenses
 Revenue
 Expenses
1.6. How many are the employees? Do they have On-the-Job trainee/s?
 Number of employees
 Number of trainee/s
1.7. What are the types of product they produce?
1.8. How do you market your products? How are people aware of your business?
1.9. Who is responsible for cost management?

Part II
Direction: Please put a checkmark (/) and rate based on what the company actually
does on the given statements.
Scale:
5 – Strongly Agree 4 – Agree 3 – Neither agree nor disagree 2 – Disagree
1 – Strongly Disagree
5 4 3 2 1
Planning
1. Address and illustrate the business itself. Consider
including a mission & vision statement with
objectives detailing how the business satisfies the
need in the market.
2. The business employs a strategy on how best to
reach the company goals.
3. When planning the budget, all departments, board
and advisers of the business utilize their expertise
and experiences.
4. The management considers the suggestions of
every team member in the planning process.
5. The management is able to identify the business’
strengths, weaknesses, and opportunities at the
beginning of the planning process.
6. The management identifies the financial and non-
financial measures that will be used to assess the
viability of the strategy.
7. The management calculates the full cost of
resources needed to estimate a budget.
8. The current status of inventory of the current
resources – capital, raw material, technology, and
human resources are up to date.
9. The business considers new products that could be
introduced to the current market.
10. Management sets criteria that will be used to
evaluate a new product.
11. Marketing department identifies its target market
and customers.
12. The current product market areas are recognized in
which emphasis would be placed.
13. The finalized plan is approved by the owner or the
board.
5 4 3 2 1
Budgeting
1. Budgets are prepared in good time for all the costs
of running the company.
2. The business can prepare an expected budget for
the following year.
3. Previous sales and expenditures data are used as
basis in the preparation of the budget
4. Company operation budgets are based on the
costs of planned activities.
5. The budget includes educated estimates to provide
a precise plan for the business’ revenues and
expenses.
6. A separate budget is prepared for core costs
(overheads).
7. After the estimates are created, budget is finalized
and reviewed by the management.
8. If in need of outside funding, sources and uses of
funds requested are properly identified.
9. Company budgets are approved by the Board of
Directors /CEO.
10. The prepared budget includes allowances for any
unplanned expenditures
11. Actual expenses exceed budgeted expenses.
12. The trend in the company’s sales for the past three
years is considered in preparing the sales budget.
13. Administrative, Finance and Operation personnel
are involved in setting budgets.
14. Budget worksheets include explanatory notes and
clear calculations.
15. All planned operational costs are adequately
funded.
5 4 3 2 1
Controlling
There is an overstatement or understatement in the
budget that requires control.
1. All related activities are supervised by the
management.
2. The person in charge of cost management
investigates the reasons for cost variations and
takes action if any discrepancies are detected.
3. The uses of resources are monitored properly.
4. Non-manufacturing expenses are reduced
whenever possible.
5. The business seeks available alternatives that will
reduce manufacturing cost.
6. Cash is kept safely in a locked cashbox or safe, in
the custody of one individual.
7. All cheques are signed by at least two authorized
signatories.
8. There is a written policy detailing who can
authorize expenditure of different types or value.
9. All transactions are properly authorized.
10. Different steps in the procurement process, (eg
ordering, receiving and paying) are shared among
different people.
11. Expenses claims for employees advances are
checked by the same person who authorized the
advance.
12. Salaries (including advances and loans deductions)
are checked each month by a senior manager.
13. All fixed assets (ex. vehicles, computers,
equipment) of the company are insured and
controlled using a fixed assets register.
14. There is an approved policies and procedures
manual in place which is relevant to the company.
5 4 3 2 1
Product Costing
6. Materials are classified as direct or indirect.
7. Labor is classified as direct or indirect.
8. Indirect costs are part of the overhead costs.
9. Total cost of the product includes:
1. Direct material costs
2. Direct labor costs
3. Overhead costs
10. Product costs are developed through
recommendations by the operation and marketing
departments.
11. General and administrative expenses are included
in the total cost.
12. Some components that should be part of the
product cost are considered expenses.
13. Selling price of the product comprise of total cost
and some percentage of mark-up.

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MANUEL S. ENVERGA UNIVERSITY FOUNDATION

MANUEL S. ENVERGA UNIVERSITY FOUNDATION

AN ANALYSIS OF THE COST MANAGEMENT SYSTEM

An Undergraduate Thesis Presented to the Faculty of the

In Partial Fulfilment of the Requirements

Aime Jane P. Mediarito

This thesis hereto entitled:

AN ANALYSIS OF COST MANAGEMENT SYSTEM

Approved by the Committee on Oral Examination with a grade of ______________.

JUSTINIANO SANTOS CATHERINE M. LIMJUCO

Accepted in Partial fulfillment of the requirements for the Degree of Bachelor of

CATHERINE M. LIMJUCO, CPA, MBA

1. Background of the Study.........................................................................................

a. Rationale of the Research...................................................................................

b. Purpose of the Research.....................................................................................

e. Significance of the Research...............................................................................

f. Statement of Desired Outcomes..........................................................................

g. Major Final Output……………………………………………………………….

h. Target Beneficiaries of Research Results………………………………………...

j. Scope and Limitation of the Study……………………………………………….

2. Description of Method or Approach……………………………………………………

a. Research Design/Research Instrument/Data Gathering Procedures…………...

b. Respondents/Units of Analysis/Subjects of the Study……………………………

c. Sampling Design and Procedures………………………………………………..

e. Data Analysis Plan………………………………………………………………

3. Results and Discussion………………………………………………………………...

Curriculum Vitae of the Researcher…………………………………………….

Table 4 Product Costing

The researchers would like to express their sincerest appreciation to the

following who guided them in finishing this study.

knowledge in order to improve the study;

Mr. Flormando Baldovino, for helping them in employing appropriate statistical

treatment to their gathered data;

that made everything possible.

Name of Researcher: Mediarito, Aime Jane P.

Bachelor of Science in Accountancy

Rodil, Via Nicole H.

Bachelor of Science in Accountancy

Bachelor of Science in Accountancy

Bachelor of Science in Accountancy

Name of Research Adviser: Mr. Carlito M. Rodriguez

A cost management system is part of an overall management information

methods developed for planning and controlling an organization’s cost-generating

there is an association between planning, budgeting and controlling of costs and

determine if there is an association between planning, budgeting and controlling of

respondent’s perception on each dimension is not independent with their perception

is a significant association between planning, budgeting, and controlling of costs and

a. Rationale of the research

Hilton (2008) said that a revolution is transforming the world of business.

The growths of international competition, the breakneck pace of technological

innovation, and startling advances in computerized systems have created a new

and foreign competition is forcing manufacturers to strive for a better understanding

changed significantly over the past decade.

Cost management is the use of cost accounting systems and methods to

interpretation of cost data is critical to the decision-making process.

According to Hilton (2008), cost management system should provide the

management system should help managers comprehend business processes and