Imus Institute

College department
Cost Accounting and Management

Kriza S. Matro
III-BSA

ACTIVITY 1

Hernando D. Valmores, Jr
Former manager, CPA

 What characteristics that should be present in a standard cost system to

encourage positive employee motivation

 Performance based merit increase, profit sharing or granting of

employees fringe benefits with the use of scorecard.

 How a standard cost system should be implemented to positively motivate

employees?

 In the setting of goals and targets, employees should be involved

and they should understand the parameters used and these are
acceptable to them.

 What is the meaning of management by exception and how variance analysis

often results in the use of this concept

 Management by exception is when a management devotes some

time in determining the causes or reasons for the significant
 difference between actual results and planned results. The
variance analysis is used to explain the difference between the
actual versus the budget or targets. There could be a variety of
reasons; saturated market, economic profile of the area (CD
markets compared to AB markets), the pricing of the product, etc.

 How employee behavior could be adversely affected when “actual to

standard” comparisons are used as the basis for performance evaluation

 Employees are more productive when there is a measure of

performance used in evaluating his output, especially if it will lead
to his/her promotions, increase in salaries, and awards/citations.

ACTIVITY 2
Standard Hours in Reading books such as books in cost accounting, financial
accounting, Rizal’s works and philosophy, Income taxation, and Law on
Obligation and contract.

Students Standard Hours (5 days) Actual hours

Kriza Matro 15 hours 12 hrs.
Mark Allan Flores 15 hours 10 hrs.
Francis Oliver Millare 15 hours 9 hrs.
Ross Arguelles 15 hours 9 hrs.

a. Using an assumed hourly wage rate of P 164.05, calculate the labor efficiency
variance for your team.

Kriza Matro
Actual Hours 12
Less: Standard Hours 15
Difference -3
x Standard Rate 164.05
labor efficiency variance -492.15
 Mark Allan Flores

Actual Hours 10
Less: Standard Hours 15
Difference -5
x Standard Rate 164.05
labor efficiency variance -820.25

Francis Oliver Millare

Actual Hours 9
Less: Standard Hours 15
Difference -6
x Standard Rate 164.05
labor efficiency variance -984.3
Ross Arguelles

Actual Hours 9
Less: Standard Hours 15
Difference -6
x Standard Rate 164.05
labor efficiency variance -984.3

b. Prepare a list of reasons for the variance.

 Lack of proper time Management.

 Poor scheduling
 Many household chores to do
 Laziness
 Too much time spent in watching television, surfing the net and
playing computer games.
 Too much time is allocated for texting and chatting to the friends.
 Sleepiness

c. How could some of the variance have been avoided?

  Proper Management of time.
 Set priority.
 Lessen leisure time.
 Take a book with you everywhere
 Take advantage of those precious moments that are often wasted.
 Exercise not only the body but also the mind.

ACTIVITY 3
WEB RESEARCH

Perdue Farms Incorporated is the number-one

company of premium chicken in the Eastern
U.S. and is synonymous with quality products
around the globe. They provide food and
agricultural products and services to customers
in more than 100 countries.

It is a family-owned company with a

commitment to quality and innovation. Chairman Jim Perdue is the third
generation Perdue to lead the company. It was built on a foundation of trust
going back to its founding in 1920. Today, its Vision is "To be the most trusted
name in food and agricultural products".
It has a great emphasis on the essence of the value on the success of its
establishment– Quality, Integrity, Teamwork and Stewardship – which are
shared by them for more than 20,000 associates company-wide. Its family and
farm tradition is always in its hearts, while innovative spirit defines its future.
It embraces change, pursue continuous improvement and invest in the
technologies and opportunities that will drive our business forward while
remaining true to its values.

The company provides food product particularly in poultry products. Perdue is

what is known as a vertically integrated agribusiness. That means the
company is involved in every step of the supply chain – from eggs and feed
ingredients all the way through processing, distribution and marketing. This
vertical integration enables them to ensure the quality of our poultry products
at every step. It ensures quality food products. From ready-to-cook whole birds
and parts to prepared foods, it has a full range of products for the home or
commercial kitchen, while its innovative convenience foods provide quality
meal solutions for families on the go.

Its food service poultry products and sliced meats are distributed nationwide
and served almost anywhere food is prepared away from home. Our foodservice
customers include many of the best-known national restaurant chains, the
U.S. military, and the national and regional distributors who sell to local
restaurants and other commercial and institutional customers.

Perdue is committed to environmental stewardship and shares that

commitment with its contract producers. They believe it is possible to preserve
the family farm and provide a safe, abundant and affordable food supply while
protecting its communities and the environment.
Perdue leads the industry in addressing the full range of environmental
challenges related to animal agriculture and food processing, investing millions
of dollars in research, new technology, equipment upgrades and awareness and
education.

It accesses all of its employees to the fullest. And ever since company founder
Arthur Perdue hired his first associate in 1930, the company has recognized
that people are essential to its success. And that philosophy continues to drive
its concern for its associates.

As what the visions, philosophies, how Perdue operated/managed and how

they valued its employee, the company has a lot of opportunity for innovation
and discovery of new product that will lead to its most success. Actually, all of
that opportunities are all in the hands of the company, their only need is to be
more aware and make a various feasible study on that. Their need more study
on what are the needs of the customer on the present time. But the important
is, Perdue is rapidly growing - and changing - food and agricultural products.
They're looking for ambitious, innovative, hard-working people with a
commitment to quality, customer service, integrity and teamwork to help them
fulfill that vision
The company gives great benefits to its employees that will help them to
motivate to do their works. So, the employee must have competitive
characteristics and skills to satisfy the needs of the company. They must know
how to listen to instructions, take responsibility, take initiative, give credit to
others, be responsive, perform duties cheerfully, be dependent, stay healthy, be
self-disciplined and can exceed expectations. These 10 characteristics of a
great employee will surely help the company to achieve its environment’s
necessities.

ACTIVITY 4
 Cost is Life

Learning process in life is like cost

Cost of time, effort and skill at most
It valued much but it is needed
For being naïve will be dead

Our life in Cost Accounting

Sweats and tears are counting
Every time there is a quiz
All of us will be freeze

It is hard as standard costing

We’re everyone needs to meet the standard
Know the cause of every variance afterward
And evaluate oneself for contolling

We’re like direct materials

That undergo in a process to realize
Direct labor that need much time
That doesn’t want to be a scrap

We’re may be Heterogeneous in nature

But Homogenous in goal
To be a CPA in the future
A goal that always need to be recall