sample chapter of a feasibility study

8/12/2019 Sample Chapter of A Feasibility Study

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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


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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


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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


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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.


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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


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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,


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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


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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.


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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.


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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,


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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:


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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


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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


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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


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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


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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


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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.


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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.,


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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


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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


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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


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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.

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