METHODOLOGY

This chapter presents the research design used by the researchers for this study.
Researchers will explain all the methodology used in this study. It includes the research
instrument used for data collection, participants in the study, steps on data gathering procedure
and statistical methods used in processing data.
Research Design
This study utilizes the descriptive research design. Calderon and Gonzales (2007) defined
descriptive research as a description and interpretation of what is. Descriptive is often combined
with comparison and contrast involving measurements, classifications, interpretation and
evaluation (p.61). But according to James P. Key (1997), descriptive research is a process to
obtain information concerning the status of the phenomena to describe what exists with respect
to variables or conditions in a situation.
The researchers will use the descriptive research design to identify the determinants of
accounting policies and practices on depreciable assets appliedby beverage manufacturers in
Bacolod City. This will include principles, rules and practices that the manufacturers applied to
their depreciable assets. This research study will employ methods of analyzing the relationship
between the policies and practices use by a manufacturer and the factors that influences
managers in their decisions.

Sources of Data
Primary
The researchers decide to directly obtain data from the beverage manufacturers here in
Bacolod City. The main objective of this is to identify on what method the companies are using
when computing for their depreciable assets. These are the following companies the researchers
chose to study:

San Miguel Brewery Inc.

Pepsi-Cola Products Philippines, Inc.
Coca-Cola FEMSA Philippines Inc.
Zest-O Corporation
Cosmos Bottling Corporation.
Through the information that will be obtained from these companies, the researchers can

perform the study well. It is important to get data directly from these companies so to know
first-hand on what method they are using when depreciating their depreciable assets.
Secondary
To know the list of the beverage manufacturers, the researchers have decided to go to the
Business Permits and Licensing Office (BPLO) located in New Government Center, Bacolod
City to obtain information from them. The BPLO provides centralized system of processing,
issuance and renewal of business permits and licenses.

Participants of the Study

The study will have participants directly from the beverage manufacturers in Bacolod
City. It has been determined that the population composed only of five (5) companies, which are:
San Miguel Brewery, Inc. located in Sta. Fe Burgos Ext., Brgy. Granada; Coca-Cola FEMSA
Philippines, Inc. located in Murcia Road, Brgy. Mansilingan; Pepsi-Cola Products Philippines,
Inc. located in Prk. Pepsi, Brgy. Bata; Cosmos Bottling Corporation located in Murcia Road,
Brgy. Mansilingan; and Zest O Corporation located in Unit 1 Alfonso S. Cu Bldg., Prk. Himaya
Hernaez Ext., Brgy. Mansilingan. All of these companies will be subjected to the study since the
population of the respondents have a number of less than the minimum required number of
population thus, the researchers do not need to do computations in solving the sample size.
Specifically, the accounting department of the said companies will act as their representatives.
They are the ones who are knowledgeable enough to answer the problems posed in the study.
The participants will answer the questions that will be provided by the researchers through an
interview schedule.
Research Instrument
The researchers design a standardized interview schedule for the data gathering process
to obtain qualitative and quantitative data. This aims to determine what accounting policies and
principles the manufacturers apply to their depreciable assets. The use of structured interview
schedule requires clear understanding of the topic. This is why researchers will create questions
prior to the interview.
Questions will be based on the order and formulation of objectives of the study. These
objectives are created from general to specific query. Primarily, the researchers aim to know the
socio-economic profile of the beverage manufacturers in Bacolod City. Included would be

related questions like companies years of operations and yearly income. The researchers would
include what depreciable assets the manufacturers use in their operations, current accounting
policies, and what compel the managers decision in choosing such policies and practices.
Through these questions, the researchers will be able to know information that are within
the scope of the study. The responses that will be gathered from the participants of this study
would be used in the analysis of the data which will lead to the attainment of the objectives.
Data Gathering Procedures
There will be series of actions to be conducted by the researchers in gathering data from
the respondents. First, the researchers will ask for all the list of manufacturers in Bacolod City
from the Business Permits and Licensing Office. Then, they will be able to choose the beverage
industry and classify the companies that will be considered as the participants of the study.
Communication letters will be made and then, these will be sent to the chosen beverage
manufacturers indicating the intention of asking information about their business, specifically the
accounting policies and practices they apply on their depreciable assets. Once the letter has been
approved, the researchers will inquire for the available time of the respondents to have the
interview. The researchers will be divided into three (3) groups with two (2) persons each to go
to their assigned companies to interview. Structured questions will be created to ensure
uniformity, to avoid wasting of time and to acquire complete data. Each of the companys
representatives will be asked to answer these questions which will be mostly related to the
objectives of the study. During the interview, the researchers will be allowed to raise follow up
questions for clarity and completeness of information needed in the study. Therefore, there will
be a direct interaction between the researchers and the managers or the personnel under the

accounting department of San Miguel Brewery Inc., Pepsi-Cola Products Philippines, Inc., CocaCola Bottlers Philippines Inc., Zest-O Corporation and Cosmos Bottling Corporation. The
researchers will surely keep the information that they will be getting from the respondents
confidential. The limited time and availability of the respondents and the researchers for the
interview will be the main problems that will be encountered in completing this study.
Statistical Treatment of Data
The researchers will use descriptive statistics only in analyzing the data to be gathered
during the study, since there is no need to draw some conclusions in the data in a descriptive
research design and the sample size is the same with the population. Descriptive statistics is use
in describing the population or the sample being studied. The results to be generated from the
collection of data will help the researchers to organize and describe the data statistically. Thus, it
cannot be used in generalizing any larger groups (Crossman, n.d.). In this study, frequency and
percentages will be used in all variables in socio-economic profile, depreciable assets they use in
their operation, current accounting policies and practices, and factors they consider in choosing
the accounting policies and practices. It is the best tool to use, since the data to be gathered are
qualitative in nature and frequency will show the number of participants that answer a specific
option.