Download - Sample Chapter of A Feasibility Study
-
8/12/2019 Sample Chapter of A Feasibility Study
1/24
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
Accounting is a service activity which main function is to provide
quantitative information, primarily financial in nature, about economic entities that
is intended to be useful in making economic decisions, in making reasoned
choices among alternative courses of action.
Since Accounting includes variety of branches and services different
agencies have set out their own definition of the service activity.
The Accounting Standards Council (ASC) provides the following:
Accounting is a service activity. Its function is to provide quantitative information,
primarily financial in nature, about economic entities, that is intended to be useful
in making economic decision.
On the other hand, the Committee on Accounting Terminology of the
American Institute of Certified Public Accountants defines Accounting as follows:
Accounting is the art of recording, classifying and summarizing in a significant
manner and in terms of money, the transactions and events which are in part at
least of a financial character and interpreting the results thereof.
The American Accounting Association in its Statement of Basic
Accounting Theory clearly states the following: Accounting is the process of
-
8/12/2019 Sample Chapter of A Feasibility Study
2/24
-
8/12/2019 Sample Chapter of A Feasibility Study
3/24
operations.During this period, there became a need for more advanced cost
accounting systems, and the development of corporations created much larger
classes of external capital providers - shareholders and bondholders - who were
not part of the firm's management but had a vital interest in its results.
The rising public status of accountants helped to transform Accounting
into a profession, first in the United Kingdom as Edinburgh Society and Glasgow
Institute of Accountants but later reverted to Chartered Accountants and then in
the United States as American Association of Public Accountants.
Due to the increasing demand for accounting services, countless
Accounting standard-setting bodies are instituted to organize and unify the
profession of Accounting across the globe. International accounting organizations
includes the International Accounting Standards Board (IASB), International
Federation of Accountants (IFA), and the IFRS Foundation. Each nation also has
its own standard-setting body that regulates the Accounting profession in its
region. The sole standard-setting body present in the Philippines is the Board of
Accountancy (BOA) which is created under Republic Act No. 9298 and
authorized by law to promulgate rules and regulations affecting the practice of
the accountancy profession in the Philippines.
One of the tasks of the Board of Accountancy in the Philippines is to
implement an education system whose graduates will be able to pass the board
exam for Accounting and meet the demands of the industry in basic accounting
-
8/12/2019 Sample Chapter of A Feasibility Study
4/24
skills such as bookkeeping, tax and payroll accounting, and other miscellaneous
accounting services as such.
An Associates Degree in Accounting covers the basic courses taught in a
bachelors degree. These courses areachieved through completing a number of
classes related to basic accounting principles, taxes, analysis of financial
statements, payroll, statistics, and accounting software and technology.
Familiarity with spreadsheets and bookkeeping will be addressed.
Communication skills will also be taught and practiced to ensure the graduate will
fit into an office or corporate setting. A typical Associates Degree in Accounting
will take two years or four full semesters of course work. The U.S. Bureau of
Labor Statistics (BLS) predicts that over the next 5-6 years, associates degrees
are more and more likely to set applicants apart from those with only a high
school diploma.
To address the issue of job mismatch, thousands of universities and
colleges all over the world offer not only bachelors but also an associate degree
a very practical and highly valuable alternative. With proper lessons and
training from competent teachers, students are job ready after undertaking the
courses provided. It prepares students with entry-level, basic skills, enabling
them to qualify for entry-level technical jobs.
Like any college degree, an associate degree opens doors to higher
income. It guarantees a better-paying job compared with workers whose highest
level of educational attainment was a high school diploma, workers averaged an
-
8/12/2019 Sample Chapter of A Feasibility Study
5/24
extra $128 a week in 2001, according to the Bureau of Labor Statistics (as cited
in Crosby, 2002). People with associate degrees also are more likely to find jobs:
the unemployment rate in 2001 was more than 30 percent lower for associate
degree holders compared with high school graduates. And, according to several
academic studies, advantages in the job market might be even greater for those
just starting their careers and for those who work in a career related to their
degree.
The cost of a two-year program is significantly cheaper than a bachelors
degree which in a way is more convenient for students into having an educational
edge. By parting the time required to obtain the degree, one is able to save
money and still wind up with a valuable education that will land them a good job.
Another good thing, most universities offer associates degree to pursue
bachelors degree in the future.
Since, associatesdegree can be earned in most four-year universities, or
even online. One can pursue a degree while working full- or part-time and have
the flexibility to study what one wants, often when one wants it.
Associates degree programs are available from public community
colleges, private 2-year colleges, for-profit technical institutes, and many 4-year
colleges and universities. Though taking classes from home is more common in
associate degree programs than in any other type of educational credentials
program, with more than 9 percent of associate degree students using distance
learning in 1998, according to the U.S. Department of Education.
-
8/12/2019 Sample Chapter of A Feasibility Study
6/24
Background of the Study
As of today, an Associates Degree in Accounting is widely offered in
different colleges and universities outside the Philippines. Each program is
targeted at a specific service like bookkeepping, cost accounting, tax, or payroll
accounting.
Among the different colleges and universities in the Philippines, Batangas
State University is the only university which offers a 2-year Associate in
Accounting Degree. It is a state university that has ten campuses in the Province
of Batangas particularly in Batangas City, Lipa City, Balayan, Lemery, Lobo,
Malvar,Nasugbu,Rosario, San Juan. Centered in the capital of the province, the
university was ranked 64th among the best performing colleges and universities
of the Philippines.
Seal of Batangas State University
Figure 1
http://en.wikipedia.org/wiki/Balayan,_Batangashttp://en.wikipedia.org/wiki/Lemery,_Batangashttp://en.wikipedia.org/wiki/Nasugbu,_Batangashttp://en.wikipedia.org/wiki/Nasugbu,_Batangashttp://en.wikipedia.org/wiki/Lemery,_Batangashttp://en.wikipedia.org/wiki/Balayan,_Batangas -
8/12/2019 Sample Chapter of A Feasibility Study
7/24
Location of Batangas State University
Figure 2
Batangas State University was founded in 1903 as Manual Training
School under the supervision of an American principal, Mr. Scheer. It was
renamed Batangas Trade School in 1905, whose admission was limited to only
male students. By 1948, the school was rebuilt under the Rehabilitation Act of
1946 and it begun admitting female students in food trades, garment trades and
cosmetology. On 1953, its name was changed to Pablo Borbon Memorial Trade
School in pursuance to Republic Act 746 which bestowed a national status upon
the school. It was again renamed Pablo Borbon Regional School of Arts and
Trades and started offering technical courses under the able stewardship of Mr.
Arsenio Galauran who stoop down in 1963 succeeded by Mr. Rosario De Leon.
Mr. De Leon immediately initiated innovative plans to build-up efficient citizen-
workers with the inclusion of opportunity terminal classes in auto mechanics,
-
8/12/2019 Sample Chapter of A Feasibility Study
8/24
machine shop practice, electronics, radio mechanics, cosmetology and
dressmaking. Republic Act 4872 authorized the offering of the Bachelor of
Science in Industrial Education program in 1965.
On 1968, the school was then converted into a state college by virtue of
Republic Act 5270 known as Pablo Borbon Memorial Institute of Technology. It
was the 23rd state college of the country at the time of conversion having Mr.
Rosario De Leon sworn in as its first president. The college offered Industrial
Teacher Education Engineering courses with specialization in Mechanical and
Electrical Engineering in 1971. On 1974, Civil Engineering was added to the
course offering. The Graduate School was opened with the offering of a master's
program leading to the degree of Master of Arts in Industrial Education, major in
Administration and Supervision. A 200-hour skills training for out-of-school youth
in practical electricity, automotive, mechanics, food trades and woodcraft named
Extension Trade Training Program was introduced in 1977. In the succeeding
year, Master of Management with specialization in Business Management and
Public Management was offered on consortium with the UP College of Public
Administration. By 1984, the College acquired a three-hectare site at Alangilan,
Batangas City through the efforts of the second college president, Mr. Isabelo
Evangelio. On 1986, Dr. Mariano O. Albayalde then vice president was sworn as
third president of the College.
The College continuously grows and expands by offering a variety of new
courses such as a pilot class of the general secondary curriculum with emphasis
on science and mathematics, doctoral program in Industrial Education
-
8/12/2019 Sample Chapter of A Feasibility Study
9/24
Management (Ed. D.) in consortium with TUP, Dual Training System (DTS),
Bachelor of Arts in Development Communication and Bachelor of Science in
Biology, Bachelor of Science in Architecture and Bachelor of Science in
Chemical Engineering, Statistics, Physics, Behavioral Science, Sociology, and
Public Administration and Information System Management. And on 1999, the
School of Accountancy, Business and Economics, Center of Gender and Poverty
Studies and School of Food Science were established. New courses were
offered by the year 2000 namely Environmental and Sanitary Engineering, Fine
Arts, Information System Management, Computer Education, Information
Technology, Marine Biology, Psychology, Peace and Security Studies, Guidance
and Counseling, Business Administration, and Secretarial Administration. Then
finally, on March, 2001, by the virtue of RA 90451 signed by Her Excellency
Former President Gloria Macapagal-Arroyo, Pablo Borbon Memorial Institute of
Technology was elevated into Batangas State University.
Theoretical Framework
Facing trade-offs is one of the four principles that affect individual decision
making. In order to acquire something that one likes, onewill usually have to give
up another in exchange. This being stated puts no mystery to what an economy
is. It is just a group of people dealing with one another as they go about their
lives. Take into consideration the parents deciding how to spend their family
income. They can use it for their childrens education, for their food, for their
clothing, or put in their savings. When they choose to spend an extra Peso on
one of these products, they have one less Peso to spend on some other product.
-
8/12/2019 Sample Chapter of A Feasibility Study
10/24
Or consider the students deciding how to allocate their precious resource which
is time. They may spend their time studying or pursuing a degree in college or
they may look for a job immediately after graduation and start earning. As the old
saying goes, There is no such thing as free lunch. There are things that should
be given up to move on with life.
Cost-Benefit Principle is another principle of individual decision making.
The cost of a product is what you give up to get it. Whether it is looked from the
point of view of the possible consumers (students) or from the investors
(university), the cost and benefit of establishing an Associate in Accounting
Administration degree must be determined to enlighten them of the opportunities
that lie ahead. The benefits of pursuing or offering a two-year course should
overweigh the cost to be incurred or given up.
The Law of Demand and Supply is an economic model of price
determination in a market which states that in a competitive market, the unit price
of a particular good will vary until quantity demanded by consumers at current
price meets with the quantity supplied by producers at current price creating an
economic equilibrium of price and quantity.
The four basic principles of demand and supply are:
1. Other things constant, the quantity demanded of a product falls when the
price of the good rises.
2. Other things constant, the quantity demanded of a product rises when the
price of the good falls.
-
8/12/2019 Sample Chapter of A Feasibility Study
11/24
3. Other things constant, the quantity supplied of a good rises when the
price of a good falls.
4. Other things constant, the quantity supplied of a good falls when the price
of a good rises.
Value pricing is a pricing strategy which offers just the right combination of
quality and good service at a fair price. Tuition fee is the main cost incurred by
students to enrol a course in a university. The cost must be reasonable enough
and at the same time affordable for the possible enrolees without sacrificing the
quality of education offered by the institution.
Societal Marketing Concept is one of the five Marketing Management
Philosophies which concludes that the institution should consider or identify the
consumers wants, needs and interests. In order to sell effectively the new course
offered, the institution must study the current situation of the economy to dig
deeper on the needs and capabilities of the prospective enrolees.
Product concept, another Marketing Management Philosophy, states that
consumers will favor the product that offers good quality and good performance
and features that the institution should therefore devote its energy to making
continuous product improvement.
The significance of these Law, principles, philosophies, and strategy will
be the basis of evaluation of the acceptability of Associate in Accounting
Administration degree. Specifically, the effect of these in the marketing aspect,
-
8/12/2019 Sample Chapter of A Feasibility Study
12/24
-
8/12/2019 Sample Chapter of A Feasibility Study
13/24
Research Paradigm of the Feasibility Study of Associate Degree in AccountingAdministration in CaMaNaVa Area
Figure 3
Figure 3 shows the paradigm of the study. It consists of three boxes
namely: 1.) the input box which contains respondents profile and their perception
on accounting administration as a degree in terms of campus location, campus
layout, and tuition and other miscellaneous fees, 2.) the process box which has
the presentation, analysis, and interpretation of data gathered through the
questionnaire and conducted interviews, and 3.) the output box which contains
the determined profile of the respondents, their determined perception on
accounting administration as a degree and the viability of the proposed degree in
terms of the four aspect such as the management, technical, marketing and
financial.
Statement of the Problem
The purpose of this study is to make, A Feasib ility Study on the
Introduction of Associate in Accounting Administration Degree in the University of
the East- Caloocan: An Evaluation of Acceptability among Graduating Students
from Selected Public High Schools in CaMaNaVa Area. Its aim is to ascertain
whether a business undertaking is viable and feasible.
This study sought to answer specifically the following questions:
-
8/12/2019 Sample Chapter of A Feasibility Study
14/24
1. Is the introduction of Associate in Accounting Administration Degree in the
University of the East-Caloocan is acceptable and feasible in terms of the
following demographic profile of the respondents
1.1 Gender
1.2 Age
1.3 Name of School
1.4 Residential district/Address
1.5 Monthly Family Income
2. How do respondents perceive associate degree in accounting
administration as a course in terms of the following:
2.1 Course preference
2.2 Awareness of Associate degree in accounting administration
2.3 Willingness to take this course
2.4 Quality of Learning?
2.5 Amount willing to spend as to tuition and other school fees
3. What will be the general status of the proposed business in the term of the
following:
3.1 Management Aspects/ Technical Aspects
-
8/12/2019 Sample Chapter of A Feasibility Study
15/24
3.1.1 Form of ownership
3.1.2 Capitalization
3.1.3 Pre-operating activities
3.1.4 Project schedule
3.1.5 Organizational chart of the college of Business
administration
3.1.6 Manpower requirements
3.1.2.1 Job description
3.1.7 Internal Policies
3.1.8 Compensation and benefit
3.2 Technical Aspects
3.2.1 Project Description
3.2.2 Project objectives
3.2.3 Proposed Curriculum
3.2.3 Processes of the Project
3.2.3.1 Admission and Registration
3.2.3.2Grading System
3.2.3.3 Dropping of Subjects
-
8/12/2019 Sample Chapter of A Feasibility Study
16/24
3.2.4 University rules and regulations
3.2.5 Educational facilities and materials needed
3.2.6 Vicinity and Layout
3.2.7 Materials, utilities and labor requirements
3.2.8 Pricing scheme
3.2.8.1 Forecasted Tuition fees
3.2.8.2 Forecasted Miscellaneous fees
3.2.9 Costing Scheme
3.2.9.1 Salaries Expense
3.2.9.2 Pre-operating expenses and advertising expenses
3.2.9.3 Supplies expense
3.2.9.4 Utilities expense
3.3 Marketing Aspect
3.3.1 General Market Description
3.3.1.1 Market Size
3.3.2 General Company Description
3.3.2.1 SWOT analysis
-
8/12/2019 Sample Chapter of A Feasibility Study
17/24
3.3.3.2 Market Segment
3.3.3.2.1 Target Market
3.3.3.2.1 Market positioning
3.3.3.3 Marketing Mix Strategies
3.3.3.3.1 Promotion
3.3.3.3.2 Product
3.3.3.3.3 Place
3.3.3.3.4 Pricing
3.3.3.3.5 People
3.3.3.3.6 Process
3.3.3.3.7 Physical evidence and environment
3.3.3.4 Marketing Program
3.3.3.4.1 School-to-school promotion
3.3.3.4.2 Distribution of leaflets and flyers
3.3.3.4.3 Use of Tarpaulin
3.3.3.4.4 Advertisement at University of the East website
3.3.3.5 Demand Analysis
-
8/12/2019 Sample Chapter of A Feasibility Study
18/24
3.3.3.5.1 Population
3.3.3.5.2 Sample Size
3.3.3.5.3 Survey Results
3.3.3.5.4 Projected Demand
3.3.3.6 Supply analysis
3.3.3.6.1 Historical supply
3.3.3.6.2 Current Supply
3.3.3.6.3 Projected supply
3.3.3.3.7 Competitor analysis
3.4 Financial Aspect
3.4.1 Major Assumptions
3.4.2 Financial ratios
3.4.3 Liquidity Ratio
3.4.4 Acid Test Ratio
3.4.5 Net Working Capital
3.4.6 Profitability Ratio
3.4.7 Return On Assets
-
8/12/2019 Sample Chapter of A Feasibility Study
19/24
3.4.8 Gross Margin Ratio
3.4.9 Net Profit Ratio
3.4.10 Net Profit Ratio
3.4.11 Activity Analysis
3.4.12 Solvency Analysis
3.4.13 Debt Ratio
3.4.14 Time Interest Ratio
3.4.15 Debt Equity Ratio
3.4.16 Break Even Analysis
3.4.17 Break even sales
3.4.18 Payback period
Hypotheses
In line with the statement of the problem of the study, the following
hypotheses were formulated and tested at 0.05 level of significance:
1. There is no significant relationship between media and publicity and
acceptability of associate accounting administration degree.
2. There is no significant relationship between personal interest and
acceptability of associate accounting administration degree.
-
8/12/2019 Sample Chapter of A Feasibility Study
20/24
3. There is no significant relationship between job prospect and acceptability
of associate accounting administration degree.
4. There is no significant relationship between family members and peers
and acceptability of associate accounting administration degree.
Scope of the Study
The study is conducted to determine the acceptability of all graduating
students from twelve (12) selected public high schools in Caloocan, Malabon,
Navotas, and Valenzuela City. The selection was based on the top three most
populated high schools in each city. The following schools, with its address and
total number of graduating students are the following:
SCHOOL NAME ADDRESS
AVERAGE
NO.OF
GRADUATING
STUDENTS
Amparo High School
95 Marang St.,
AmparoSubd.,
Caloocan City
ArkongBato National
High School
San Diego St.,
Valenzuela City
Baesa High School Reparo Rd.,
-
8/12/2019 Sample Chapter of A Feasibility Study
21/24
Baesa, Caloocan
City
Bagong Barrio National
High School
M. De Castro St.,
Bagong Barrio,
Caloocan City
Bignay National High
School
Bignay ES
Compound,
Valenzuela City
CanumayNatioinal High
School
L. Santiago St.,
Valenzuela City
Kaunlaran National High
School
Phase I,
Kaunlaran
Village, Navotas
City
Malabon National High
School
M. Naval St.,
Malabon City
Navotas National High
School
M. Naval St.,
Navotas City
Panghulo National High
School
7 Bautista St.,
Malabon City
-
8/12/2019 Sample Chapter of A Feasibility Study
22/24
Potrero National High
School
Dunwoody St.,
University Hills,
Malabon City
San Rafael
National High School
1 Taliba
St., Navotas City
Selected Schools in CaMaNaVa Area with Address Information and AverageNumber of Graduating Students
Figure 4
Due to time constraint and practical reasons, the researchers did not
classify the data gathered based on sex and age of the participants.
Significance
This study ascertains and evaluates the acceptability of the Associate
degree in accounting administration among the graduating high school student in
the CaMaNaVa area. A good promotional strategy must be set up in order to
promote and provide an awareness of the existence of this course to the
prospective consumers.
Significance to students. This study will help to provide an alternative
option to the students to access education with a lower cost and earn a degree in
a short period of time since it is only a 2-year course. Another significance to this
to students is it is a transferrable degree. Meaning this program will be equivalent
to a first half of bachelors degree so if the student complete this program, he/she
-
8/12/2019 Sample Chapter of A Feasibility Study
23/24
can proceed to another course which is related to this program and earn a
bachelors degree.
Significance to the University.To evaluate if an investment on a project
should be made or not. Also this program will help the university to maximize its
educational resources, and also to keep the university current in the educational
marketplace.
In economic perspective, this study is significant because it will help to
reduce the unemployment rate in the country since compared to high school
graduates, graduates in this program is competitive enough to find a work and
grab a job opportunity. This will also help to reduce the unemployment rate by
avoiding the labor or skill mismatch since not position requires a bachelors
degree, there are still some jobs that require only a specific skill so with study this
can avoid labor mismatch
This study is significant in the corporate world since this study will provide
adequate people equipped with accounting skills in the business industry since
there is a growing demand for accountants and auditors compared to other
occupation in the corporate world.
To other researchers. This will serve as their guide in conducting their
studies related with this topic and can be used as their reference.
Definition of terms
-
8/12/2019 Sample Chapter of A Feasibility Study
24/24
For the purpose of clarity and understanding, the following terms are
conceptually and/or operationally defined by the researchers.
Associate Degree. As defined by Crosby (2002), it is a two-year degree,
prepares students for a career following graduation or allows them to transfer into
a bachelors degree program.
Associate in Accounting Administration Degree. It is a two-year course,
offers students accounting, management, marketing, finance, and economics
subjects that are essential for ones success in a business career.