Study Notes: Purposive Communication The Power of Words and Images: Multimodality

Lesson 3: Evaluating Messages and Images of • Multimodal Presentation: A message

Different Text Types conveyed through a careful combination of text, images,
color, and other semiotic elements.
Evaluating Messages and Images Reflecting
Different Cultures • Five Key Questions for Evaluating Messages:
• Digital Communication Evolution: Modern 1. What is the message?
communication relies heavily on images and other
2. What is the purpose of the message?
semiotic elements, not just words, due to digital
technology advancements. 3. How is the message conveyed
(text/image)?
• World Englishes:
4. Who is the target audience?
• Definition: Regionally distinct varieties
of English that have developed in areas with a history of 5. What other ways could the message be
English use in education, commerce, and government presented?
(Celce-Murcia, 2014).
• Multimodality:
• Significance: English is a global lingua
franca, leading to local variations. • Definition: A text or output that uses two
or more communication modes to create meaning.
• Examples: Indian English, West African
English, Singapore English, Filipino English. • Components: Involves language,
gestures, images, and other semiotic resources deployed
• Challenge: Intelligibility issues between across visual, aural, somatic, etc., modalities.
different varieties.
• Focus: Highlights interaction and
• Example: "Having here, or take integration in constructing a coherent text.
away?" (Singapore) vs. "Dine in, or take out?"
(Philippines). • Types of Multimodal Texts:

• Kirkpatrick's Scale (Identity vs. • Paper: Books, comics, posters,

Intelligibility): brochures.

• Extreme 1 (Identity): Using a regional • Digital: Slide presentations, blogs, web

variety to affirm national/ethnic identity (e.g., Filipinos pages, social media, animation, film, video games.
using terms like "senatoriable," "bedspacer" among • Live: Performances, events.
themselves).
• Transmedia: A story told across
• Extreme 2 (Intelligibility): Adapting to multiple platforms (comics, film, games) with a unified
a more internationally understood form for global message.
participation (e.g., using "bin" instead of "trash can" or
"lift" instead of "elevator" when communicating with • Creating Multimodal Texts: Requires a
users of other English varieties). creative design concept that orchestrates text, color,
photos, sound, spatial design, language, gestures,
• Balancing Identity and Intelligibility: The key animations, and other semiotics to bring meaning to life.
challenge is finding a balance between these two
extremes. • Key Considerations for Multimodal Text
Creation:
• Code-Switching: Speakers may switch between
English and another language, or use different registers • Purpose: Clarity on the message and the
of English (e.g., a local Filipino English for Filipinos, a reason for delivery.
more formal/weaker version for international • Audience: Understanding their interests,
audiences). sensitivities, and cultural backgrounds to avoid offense.
• Context: Delivering the message 1. Treat Others with Dignity: Apply the
effectively through various semiotic resources, Golden Rule.
considering how and where it will be received.
2. No Harassment or Bullying: Do not use
Lesson 4: The Rise of New Media and Technology online platforms to demean or spread rumors.
Aids in Communication
3. Assume Public Visibility: Anything
Learning Outcomes: posted can be seen by anyone, anytime, regardless of
privacy settings. "Pause before you post, think before
• Identify strategies for communication using
you click."
social media and technology.
4. Protect Your Reputation: Be mindful of
• Evaluate language use in new media and adopt
how posts affect friendships and future job prospects, as
appropriate practices.
employers often check social media.
• Appreciate the importance of proper
English Language and the New Media
communication planning.
• New Media: Highly interactive digital
Social Media Use
technology that is easily processed, stored, transformed,
• Impact: Social media has fundamentally altered retrieved, hyper-linked, searched, and accessed (e.g.,
how people relate and communicate in social, economic, Blogs, Social Media, Online Newspapers, Virtual
and political spheres. Reality, Computer Games).

• Evolution: From early platforms in the 90s to • Language in New Media: Often referred to as
interactive sites like MySpace (2004) and the Computer-Mediated Communication (CMC), Netspeak,
exponential growth of platforms like TikTok (launched Digital Discourse, etc.
2016, 800M+ users by mid-2020).
• Characteristics of CMC:
• Survival of Platforms: Successful platforms
• Vernacular: Uses common language,
continuously evolve and respond to user needs (e.g.,
often with acronyms (LOL, YOLO), initialisms (ATM,
Twitter adding video/image uploads).
BRB), emoticons/emojis, expressive punctuation, and
• Enabling Technologies: Computers, laptops, respellings (cu, 2nyt). This increases tolerance for
smartphones facilitate FAST, CONVENIENT, typographical "errors."
INTERACTIVE communication.
• Interpersonal: Relationship-focused,
• Statistics (as of July 2020): characterized by turn-taking, topic development, back-
channels, and repairs. Evidenced by numerous group
• Global Digital Population: 4.57 billion chats.
active internet users.
• Spontaneous: Usually unplanned,
• Active Social Media Users: 3.96 billion. unstructured, and impulsive, leading to net neologisms
• Most Popular Networks: Facebook (trolls, meme, hashtag) and lexical creativity.
(2.6B), YouTube (2.0B), WhatsApp (2.0B), etc. • Dialogical: Carries an expectation of
• Philippines: 76 million Facebook users. continuous exchange, facilitated by "Reply" or
"Comment" options.
• Reasons for Social Media Use: Staying in touch
with friends, news updates, filling spare time, • Characteristics of English in New Media:
networking, entertainment, sharing opinions, research. • Brief: Emphasis on brevity due to reader
Responsible Use of Social Media attention spans (e.g., "2 MIN READ" indicators).

• Social Responsibility: Users are 100% • Multimodal: Layering of different

responsible for all content on their accounts. digital media (text, photos, videos) to enhance
interactivity.
• Best Practices:
• Ideologically-Motivated: Used for 6. Use Large Lettering: Ensure text is
control or resistance, representing or manipulating users, easily readable from a distance, with minimal serifs.
especially "digital natives." Avoid excessive text.
Communication Planning
• Definition: The process of defining information
to deliver, recipients, format, and timing to ensure the
right message reaches the right people at the right time.
• Purposes: To inform, persuade, prevent
misunderstanding, present a point of view, or reduce
barriers.
• Steps:
1. Research and analyze the current
situation.
2. Establish goals and objectives.
3. Identify the target audience.
4. Conceptualize key messages.
5. Strategize communication styles and
platforms.
6. Evaluate and anticipate outcomes.
Communication Strategies in Tech-Based
Communication
• Multimedia Presentations: Utilize technology
for visually-oriented presentations that allow
multimodality (text, graphics, photos, audio, animations,
video).
• Factors to Consider When Using Technology:
1. Keep it Simple: Avoid overwhelming
graphics/slides; ensure the message is immediate and
clear.
2. Emphasize Key Ideas: Graphics should
clearly illustrate essential points.
3. Show, Don't Just Tell: Use visuals to
convey information difficult to describe orally or in text.
4. Manageable Number of Images: Avoid
audience fatigue; aim for 8-10 images maximum.
5. Combine Variety with
Coherence: Vary designs for interest but maintain
aesthetic consistency.
Study Notes: Intellectual Revolutions that Defined • Phenomena occurred due to purpose
Society rather than cause.
I. The Copernican Revolution: Reshaping Our • Featured concentric orbs with natural,
Understanding of the Cosmos fixed, uniform, circular motion.
A. Astronomy Before Copernicus 2. Ptolemaic Model:
• Early Uses of Astronomy: • Also geocentric, but provided a
compelling mathematical model to
• Timekeeping
explain observations.
• Determining seasons
• Used epicycles (smaller circles) moving
• Calendar creation around deferents (larger circles) to
explain the retrograde motion of planets.
• Navigation
• Included an Equant point to account for
• Predicting celestial events (eclipses, non-uniform motion.
rainfall)
• Remarkably accurate for its predictive
• Greek Scientific Approach: power, it was used for approximately
• Emphasized mathematics, logic, and 1500 years.
reasoning over supernatural C. The Copernican Revolution (Heliocentric - Sun-
explanations. Centered)
• Developed scientific models to explain • Context: Renaissance scholars rediscovered
celestial phenomena. Greek texts that contradicted Aristotle, fostering
• Influenced by Mesopotamian star skepticism and the need for new theories.
cataloging. • Nicolaus Copernicus (1473-1543):
• Ancient Egyptians aligned pyramids with • Proposed a heliocentric model where
stars and incorporated astronomical planets orbit the Sun.
objects into their religion.
• This idea, though ancient (traced to
• Much Greek knowledge was lost with the Aristarchus of Samos), was revived to
burning of the Library of Alexandria. describe physical reality more accurately
• Arabic Science: than the Ptolemaic model.

• Continued astronomical development • Removed Earth from the center, set

during Europe's Dark Ages, drawing heavenly bodies rotating around the Sun,
from Chinese, Indian, and Greek and introduced Earth's daily rotation.
traditions. • His work sparked the "Copernican
• Advanced mathematics, including the Revolution" but required further
development of Algebra and algorithms. refinement.

• Many star names have Arabic origins • Tycho Brahe (1546-1601):

(e.g., Alberio, Algol). • A passionate empiricist, he found
B. Geocentric Models (Earth-Centered) Copernicus's model had a high margin of
error.
1. Aristotelian Model:
• Proposed a geo-heliocentric system:
• Believed the universe was perfect and Sun and Moon orbit Earth, while other
Earth-centered (Geocentric). planets orbit the Sun. This offered a
 compromise for those hesitant about forms became extinct due to successive floods,
heliocentrism and religious objections. with new forms replacing them.
• Johannes Kepler (1571-1630): • Charles Lyell (1797-1875): Revived Hutton's
principle of gradual geological change over
• Used Tycho Brahe's precise data to
millions of years. His work on deep time made
support his solar hypothesis.
the idea of gradual biological change (evolution)
• Developed Three Laws of Planetary more plausible.
Motion:
• Immutability of Species: The prevailing belief
1. Planets revolve in elliptical orbits that species remained unchanged throughout
with the Sun at one focus. history. Animal husbandry demonstrated that
inherited traits could vary, challenging this idea.
2. The line joining a planet and the
Sun sweeps out equal areas in B. Charles Darwin (1809-1882) and the Darwinian
equal intervals of time ("area Revolution
law").
• Voyage of the HMS Beagle (1831-1836):
3. The square of the orbital period of
• Explored the Galápagos Islands and other
a planet is directly proportional to
regions.
the cube of the semi-major axis of
its orbit ("harmonic law"). • Observed diversification of species with
shared common characteristics (e.g.,
• Galileo Galilei (1564-1642):
finches with varied beaks adapted to
• Known as the "Father of Observational different food sources).
Astronomy."
• "The Origin of Species" (1859):
• Improved the telescope and used it for
• Introduced the concept of "Descent with
astronomical observations.
Modification," commonly known
• Championed heliocentrism based on his as evolution.
findings (e.g., phases of Venus, moons of
• Proposed that all life forms are related
Jupiter).
through a distant common ancestor.
• Argued that the Bible was an authority on
• Natural Selection: The primary
faith and morals, not science, in response
mechanism driving evolution. Organisms
to biblical objections.
with traits better suited to their
II. The Darwinian Revolution: Evolution and environment are more likely to survive
Natural Selection and reproduce.

A. Biology Before Darwin • Adaptation: The process by which

organisms become better suited to their
• Jean-Baptiste Lamarck (1744-1829): Proposed environment over time.
the "Inheritance of Acquired Characteristics,"
suggesting traits acquired during an organism's • Key Principles of Natural Selection:
life could be passed to offspring.
1. Overproduction: Organisms produce more
• Thomas Robert Malthus (1766-1834): Argued offspring than can possibly survive.
that populations tend to outgrow their resources,
2. Struggle for Survival: Competition for limited
a concept that heavily influenced Darwin's ideas
resources leads to a struggle for existence.
on struggle for existence.
3. Variability: Individuals within a population
• Georges Cuvier (1769-1832): A leading figure
exhibit variations in their traits.
in paleontology, he suggested that ancient life
4. Differential Survival and • Emphasizes unconscious motivation.
Reproduction: Individuals with advantageous
• Therapy aims to provide insight by
variations are more likely to survive and pass those traits
exposing and interpreting unconscious
to their offspring.
motives and conflicts.
• Evidence for Evolution:
C. Freud's Model of the Mind
• Geographic Proximity: Similar but
1. Levels of Consciousness:
distinct species found in nearby regions.
• Conscious Mind: All thoughts, feelings,
• Homologies: Similar structures
and sensations currently aware of.
(anatomical, developmental, genetic) in
different species that suggest common • Preconscious Mind: Information not
ancestry (e.g., limb structures of currently conscious but easily retrievable
mammals). (e.g., memories, phone numbers).
• Law of Succession: Species in a given • Unconscious Mind: Contains
region are succeeded by similar species unacceptable thoughts, wishes, feelings,
in the fossil record. and memories. These exert influence on
conscious behavior without awareness.
• Fossil Record: Evidence of extinct
species and transitional forms. • Dreams: Considered the "royal
road to the unconscious"
• Vestigial Traits: Remnants of structures
(manifest content vs. latent
that had a function in ancestors but are
content).
reduced or non-functional in modern
organisms (e.g., human tailbone). • Freudian Slip: An error in
speech revealing an unconscious
III. The Freudian Revolution: Unconscious Mind and
wish or preoccupation.
Personality
• Free Association: A technique
A. Psychology Before Freud
where a person relaxes and says
• Early Beginnings: Focused on the relationship whatever comes to mind to
between mind and body, and the formation of explore the unconscious.
ideas.
2. Structural Model of Personality:
• Psychology Today: Defined as the scientific
• Id:
study of behavior and mental processes.
• The primal, instinctual part of
• Personality: An individual's unique patterns of
personality, present from birth.
thinking, feeling, and behaving. Personality
theories attempt to explain these patterns. • Operates on the "pleasure
principle": seeks immediate
B. Sigmund Freud (1856-1939) and Psychoanalysis
gratification of basic drives (sex,
• Founder of Psychoanalysis: Developed the first aggression).
comprehensive theory of personality.
• Sources of energy: Eros (life
• Core Idea: Thoughts and behaviors stem from instinct) and Thanatos (death
unconscious motives and unresolved childhood instinct); Libido (sexual energy).
conflicts.
• Does not distinguish between
• Psychoanalysis: reality and fantasy.
• A therapeutic approach and personality • Ego:
theory.
• Develops from the Id in infancy.
 • Operates on the "reality 2. Denial: Refusing to acknowledge an
principle": mediates between the unpleasant reality.
Id's demands and the constraints
• Example: An alcoholic denying
of reality and the Superego.
their addiction.
• Responsible for self-preservation
3. Regression: Retreating to an earlier,
and balancing pleasure with pain.
more comfortable stage of development.
• Can repress desires that cannot be
• Example: A child wetting the bed
met acceptably.
after a stressful event.
• Superego:
4. Reaction Formation: Behaving in a way
• Develops around ages 5-6. that is the opposite of one's true,
unacceptable feelings.
• Internalizes society's and parental
moral standards; represents • Example: Overly friendly
conscience. behavior towards someone one
dislikes.
• Focuses on what one "should" do.
5. Projection: Attributing one's own
• Can be punitive, leading to guilt
unacceptable impulses or problems onto
or shame.
others.
• Composed of
• Example: Accusing a coworker
the conscience (morals) and
of being jealous when you are
the ideal self (aspirations).
actually jealous of them.
D. Freud's Stages of Psychosexual Development
6. Rationalization: Creating comforting
• Freud proposed five stages (Oral, Anal, Phallic, but false justifications for one's actions or
Latency, Genital) where libido is focused on failures.
different erogenous zones.
• Example: Claiming a rejection
• Fixation: If a person becomes "stuck" in a stage from a university was a good
due to unresolved conflict, it can lead to specific thing because the college was too
personality traits in adulthood. competitive.

• Oedipus Complex (Boys) & Electra Complex 7. Displacement: Shifting unacceptable

(Girls): Unconscious desires for the parent of the impulses from their original target to a
opposite sex and rivalry with the parent of the safer, less threatening one.
same sex, leading to identification and
• Example: Yelling at a family
development of gender identity. Includes
member after a bad day at work.
castration anxiety (boys) and penis envy (girls).
8. Sublimation: Channeling unacceptable
E. Freud's Defense Mechanisms
urges (especially sexual) into socially
• Unconscious strategies employed by the Ego to valued activities.
protect itself from anxiety arising from conflicts
• Example: Pursuing a demanding
between the Id, Ego, and Superego. They distort
career or artistic endeavor.
reality to reduce tension.
9. Undoing: Performing an action to
1. Repression: Pushing anxiety-producing
symbolically cancel out a previous
thoughts/memories into the unconscious.
unacceptable thought or action.
(Basis for all other mechanisms).
• Example: Forgetting details of a
traumatic event.
 • Example: Making an excessive • Examples: Gramophone records,
charitable donation after cheating magnetic tapes, cassettes, CDs, DVDs.
on taxes.
3. Cinema (Film): Conveying stories through
F. Erik Erikson's Psychosocial Theory moving images.
• While similar to Freud's stages, Erikson's theory • Since ~1900: Development of film.
emphasizes social and cultural influences.
• Mechanism: Rapid sequence of
• Each of his eight stages involves a psychosocial photographs (frames) played back at a
crisis/task. specific frame rate creates the illusion of
motion.
• Successful resolution leads to a healthy
personality, but failure does not preclude later 4. Radio: One-way transmission over radio waves
development or change. to a wide audience.
The Information Age • 1886: Heinrich Hertz discovered radio
waves.
• ~1895-1896: Guglielmo Marconi
Intellectual Revolutions that Defined Society
developed practical radio transmitters
Revolution: A fundamental change in perspective or and receivers.
view, involving a paradigm shift.
• ~1900: Commercial use began.
The Information Age
5. Television: Transmitting and receiving moving
Key Concepts images (usually with sound).

• Network Externality Effect: The value of a • Term coined by: Constantin Perskyi.
good or service increases as more people use it.
• Since ~1950: Became a primary medium
• "If nobody has one, it’s useless." for influencing public opinion.

• "If everyone has one, it’s indispensable." The Internet

Evolution of Mass Media • Definition: A global system of interconnected

computer networks that communicate between
1. Print Media: Mass-produced text and images networks and devices.
from a master form.
• Key Developments:
• ~220 AD: Woodblock printing in China.
• 1960s: Packet switching development;
• 1040 AD: Movable type invented by Bi US Department of Defense research for
Sheng (China). time-sharing.
• 15th Century: Printing press invented • 1970s: ARPANET served as a backbone
by Johannes Gutenberg (Europe). for academic and military networks.
• Used oil-based ink and absorbent • 1980s: National Science Foundation
paper. Network (NSFNET) became a new
• Faster and more durable than backbone; private funding led to
predecessors. commercial extensions and worldwide
participation.
2. Recordings: Media for re-accessing
audio/visual content. Mobile Phones

• Late 19th Century: First used. • Functionality: Enables mobile phone calls
across wide geographic areas.
 • Characteristics: • Considered the first computer
programmer.
• Personal mass media.
• Recorded information and diagrams;
• "Always on."
wrote programs for the Analytical
• Built-in payment mechanisms. Engine.

• Accurate audience measurement. • George Boole:

History of Communication and Computing • Boolean Algebra: Based on the premise

that everything can be expressed as
Early Communication Methods true/false.
• Fire Beacons: Defensive communication using • Foundation for binary arithmetic in
fire signals to warn of approaching enemies. computers.
• Alphabetic Codes: • Herman Hollerith:
• 150 BC: Polybius documented the first • Invented machines using punched cards
known system for transmitting arbitrary to speed up the US Census.
messages.
• Reduced census time significantly (e.g.,
Early Counting and Computing Devices 1890 Census from projected 11 years to
• Counting Methods: Chalkmarks, Roman 2.5 years).
Numerals, Decimal system. • Founded the Tabulating Machine
• Computing Aids: Company, which became IBM.

• Counting Board: Rocks on grooves or • Atanasoff-Berry Computer (ABC):

stone tablets. • Invented by John V. Atanasoff and
• Abacus: Positional mathematics. Clifford Berry.

• Napier's Bones: Calculation of products • Recognized as the "First Electronic

and quotients. Digital Computer" (post-lawsuit in
1973).
Pioneers of Computing
• ENIAC (Electronic Numerical Integrator And
• Charles Babbage (The Father of the Calculator):
Computer):
• Developed by John Mauchly and J.
• Analytical Engine: First government- Presper Eckert.
sponsored computer research project.
• Direct ancestor to modern computers.
• Introduced the concept of a "stored
program." • Programmed by patch cords.

• Designed with input, output, control unit, • Capable of solving a large class of
internal storage, and processor. numerical problems through
reprogramming.
• Unfinished due to technological
limitations. Architectural Concepts

• Ada Lovelace (The Mother of Programming): • Von Neumann Architecture:

• Recognized the Analytical Engine's • Data and instructions share the same
potential for processing symbols. memory.
• All operations go through the Central
Processing Unit (CPU).
 • CPU components: Arithmetic Logic Unit • Invented by Edward Roberts.
(ALU) and Control Unit (CU).
• Featured an 8080 CPU and 256
• Control Unit includes Program Counter characters of memory.
and Instruction Register.
Apple Computers
• EDSAC (Electronic Delay Storage Automatic
• Founders: Steve Wozniak, Steve Jobs, Ronald
Computer):
Wayne.
• First computer to store a program in
• Early Involvement: Active in computer clubs.
memory (built by Maurice Wilkes).
• Marketing Strategy: Donating computers to
• UNIVAC (Universal Automatic Computer):
schools to drive home adoption.
• First commercialized computer.
Notable Firsts in Computing & Software
• Used by the Census Bureau and GE
• 1971: "Floppy" disk.
Engineering.
• 1978: VisiCalc (electronic spreadsheet).
• Considered a "first-generation"
computer. • 1979: WordStar (commercial word processor).
Computer Generations and Microprocessors • 1981: IBM Personal Computer shipping rate
increased significantly.
Microprocessors
• 1983: Lotus 1-2-3 released.
• Definition: A "computer on a chip"; an
integrated circuit containing all CPU functions. Microprocessors as a Catalyst
• Inventors: Marcian "Ted" Hoff was a key • The advent of microprocessors dramatically
inventor. increased computer sales worldwide (from
~30,000 in 1968 to 260 million in 2019).
• Innovation: High integration of components.
• PC sales are declining as smartphone usage
Moore's Law
increases.
• Statement: The number of transistors on a
Glossary of Key Terms
microchip doubles approximately every two
years, while the cost of computers is halved. • Paradigm Shift: A fundamental change in
approach or underlying assumptions.
• Limitations: Predicted to reach physical limits
in the 2020s due to transistor heat and energy • Network Externality: A phenomenon where the
consumption for cooling. value of a product or service increases with the
number of users.
Early Personal Computers
• Woodblock Printing: A technique where an
• Xerox Alto (1975):
entire page is carved into a block of wood, inked,
• Expensive, but a prototype for future and pressed onto paper.
personal computers.
• Movable Type: Individual characters or
• Introduced: Graphical User Interface symbols that can be arranged and rearranged to
(GUI), Object-Oriented Programming, form text.
Networking.
• Printing Press: A machine for printing text or
• Inspired Macintosh and Windows. pictures from type or plates.
• Altair 8800: • Gramophone Records: Discs used to store and
play back sound.
• First popular microcomputer sold for
personal use.
• Magnetic Tapes: A medium for storing data, • Integrated Circuit (IC): A set of electronic
often audio or video, using magnetic properties. circuits on one small flat piece (or "chip") of
semiconductor material, usually silicon.
• CD/DVD: Optical discs used for storing digital
data, including audio, video, and software. • GUI (Graphical User Interface): A type of user
interface that allows users to interact with
• Film: A sequence of still images that, when
electronic devices through graphical icons and
projected rapidly, create the illusion of motion.
visual indicators.
• Radio Waves: Electromagnetic waves used for
broadcasting and communication.
• Packet Switching: A method of transmitting
data by breaking it into small packets, sending
them independently, and reassembling them at
the destination.
• ARPANET: Advanced Research Projects
Agency Network, an early packet-switching
network and the first network to implement
TCP/IP.
• NSFNET: National Science Foundation
Network, a high-speed computer network that
was a precursor to the modern Internet.
• Punched Cards: Thick paper cards with holes
punched in them to represent data, used as an
input medium for early computers.
• Boolean Algebra: A branch of algebra in which
the values of variables are the truth values, 'true'
and 'false', usually denoted 1 and 0.
• Electronic Digital Computer: A computer that
uses discrete, digital signals to represent data and
perform calculations.
• CPU (Central Processing Unit): The primary
component of a computer that performs most of
the processing.
• ALU (Arithmetic Logic Unit): Part of the CPU
that performs arithmetic and logical operations.
• Control Unit (CU): Part of the CPU that directs
the operation of the processor.
• Program Counter: A register in the CPU that
holds the address of the next instruction to be
executed.
• Instruction Register: A register in the CPU that
holds the instruction currently being executed.
• Microprocessor: A single integrated circuit that
contains the CPU.
Rizal's Educational Journey: From Calamba to • Academic Excellence:
Europe
• Became the best student in
This study guide outlines the key stages and significant school, surpassing his peers in
aspects of Jose Rizal's educational development, Spanish, Latin, and other
highlighting his early learning, academic achievements, subjects.
and the influences that shaped his intellectual growth.
• Experienced jealousy from
I. Early Education in Calamba and Biñan (June 1864 classmates, leading to false
- 1869) accusations and punishments
from the teacher (whippings,
Rizal's foundational education began at home,
strokes from the ferrule).
demonstrating early signs of his artistic and intellectual
talents. II. Education in Manila
• Early Literacy: Rizal's formal schooling in Manila marked significant
advancements in his academic career.
• Learned the alphabet from his mother at
age 3. A. Ateneo Municipal de Manila (Age 11 onwards)
• Showed artistic inclinations at age 5, • Enrollment: Entered Ateneo Municipal de
excelling in pencil drawings, sketches, Manila at age 11.
and clay molding.
• Academic Achievements:
• Home Tutoring:
• Graduated with a Bachelor of Arts degree
• Parents employed private tutors: Maestro in 1877 at age 16.
Celestino and Maestro Lucas Padua.
• Graduated as one of nine students
• Later tutored by Leon Monroy (a former declared sobresaliente (outstanding).
classmate of his father) in Spanish and
• Continued studies to obtain a degree in
Latin. Monroy passed away five months
land surveying and assessor.
into his tutelage.
• Extracurricular Involvement:
• Poetic Expression:
• Member of the Academy of Spanish
• At age 8, wrote the Tagalog poem "Sa
Literature and the Academy of Natural
Aking Mga Kabata," emphasizing love
Sciences.
for one's language.
• Literary Works:
• Biñan Schooling:
• Wrote "Mi Primera Inspiración" (My
• Sent to a private school in Biñan after
First Inspiration), dedicated to his
Monroy's death.
mother.
• Enrolled by his brother Paciano under
• Authored religious poems like "Al Niño
Maestro Justiniano Aquino Cruz.
Jesus" (To the Child Jesus) and "A La
• First Day Encounters: Virgen Maria" (To the Virgin Mary),
demonstrating devotion.
• Faced a bully named Pedro,
whom he defeated in a wrestling • Wrote "The Intimate Alliance Between
match using skills learned from Religion and Good Education," stressing
his uncle Tio Manuel. the importance of religion in education.
• Lost an arm-wrestling match to B. University of Santo Tomas (UST) (1877-1882)
Andres Salandanan, highlighting
• Initial Studies:
a physical challenge.
 • Studied Philosophy and Letters during Paterno's "Ninay" later partly fulfilled
his first year. this purpose).
• Shifted to Medicine, specializing in B. Paris, France
Ophthalmology, upon learning his
• Specialization: Went to Paris in 1885 to study
mother was going blind.
ophthalmology.
• Challenges Faced:
• Clinical Training: Registered at the clinic of the
• Experienced discrimination as a Filipino renowned Dr. Louis Wecker.
student.
C. Heidelberg, Germany
• Felt hostility from Dominican professors.
• Ophthalmology Specialization:
• Suffered racial discrimination from
• Completed his eye specialization in 1887
Spaniards.
under Professor Otto Becker.
• Found the method of instruction obsolete
• Literary Output:
and repressive.
• Left Heidelberg with the poem "A las
• Decision to Study Abroad: Due to rampant
Flores de Heidelberg," a prayer for his
bigotry, discrimination, and hostility, Rizal
native land and a reflection on East-West
decided to pursue further studies in Spain after
values.
completing his fourth year of medical studies.
D. Other European Universities and Societies
III. Education in Europe (May 1882 onwards)
• Universities: Studied at the University of Paris
Rizal's time in Europe was crucial for his advanced
and the University of Heidelberg.
studies, personal growth, and the realization of his
nationalistic ambitions. • Doctorate: Earned a second doctorate in Europe.
A. Madrid, Spain • Societies:
• Arrival: Arrived in Madrid in May 1882. • Inducted as a member of the Berlin
Ethnological Society.
• University Studies:
• Inducted as a member of the Berlin
• Continued his medical studies at the
Anthropological Society, under the
Universidad Central de Madrid.
patronage of pathologist Rudolf Virchow.
• Degrees Earned:
IV. Rizal's Life and Achievements in Europe (10
• Degree of Licentiate in Medicine Years)
(1884).
Rizal spent a decade in Europe, immersing himself in
• Degree of Philosophy and Letters various fields and contributing significantly to Filipino
(1885). literature and national consciousness.
• Realization and Nationalistic Awakening: • Linguistic Prowess: Could converse in more
than 10 different languages.
• Madrid served as a venue for realizing his
dreams and broadening his vision. • Diverse Skills: Excelled in martial arts, fencing,
sculpture, painting, teaching, anthropology, and
• Developed a deeper understanding of
journalism.
human nature and the needs of his people.
• Literary Masterpiece:
• Proposed the publication of a book by
members of the Circulo-Hispano- • Began writing novels during his
Filipino to discuss Philippine life, though European sojourn.
it was not realized at the time. (Pedro
 • Completed his first novel, Noli Me • Profile: Physician, scholar, scientist, writer. The
Tángere, in Spanish in 1887. most outstanding Propagandist.
• Written in parts: half in Madrid, a • Dual Role:
quarter in Paris, and the rest in
• Leader & Spokesman: Among Filipino
Germany.
student communities in Europe.
• Published with the financial
• Scholar: Engaged with European
assistance of his friend, Maximo
science and scholarship (especially
Viola.
anthropology), refuting stereotypes of
• The novel addressed the social Filipino inferiority.
and political conditions of the
• Major Works & Impact:
Philippines.
• Noli Me Tangere (Touch Me Not,
V. Conclusion
1886): Published in Germany. Exposed
Rizal's educational journey was marked by a relentless colonial injustices and social ills. Caused
pursuit of knowledge, overcoming significant challenges significant furor in the Philippines,
like discrimination, and a deep commitment to his leading to its ban and Rizal's brief exile.
country. His experiences abroad not only honed his skills
• El Filibusterismo (The Reign of Greed,
and intellect but also solidified his resolve to advocate
1891): Published in Ghent, Belgium. A
for his people's welfare, culminating in his influential
sequel to Noli Me Tangere, depicting a
literary works.
more radical path.
Study Notes: Jose Rizal and the Propaganda
• Annotated Edition of Morga's Sucesos
Movement
de las Islas Filipinas: Published in Paris
I. Introduction: The Genesis of National (1890). Provided historical accounts of
Consciousness pre-Christian Philippines, highlighting its
advanced civilization.
• Time Period: 1872 - 1892
• Later Activities:
• Context: Growing national consciousness
among Filipino émigrés in Europe. • Returned to the Philippines in 1892.
• Catalyst: The freer atmosphere of Europe • Established the Liga Filipina
allowed exiled liberals and students to organize. (Philippine League) in July 1892 – a
national, non-violent organization.
II. The Propaganda Movement (1872-1892)
• Arrested and exiled to Dapitan,
• Nature: Primarily literary and cultural, aiming
Mindanao, shortly after the Liga's
to influence Spanish perception and foster a
formation.
better relationship with the Philippines.
B. Graciano López Jaena (1856-1896)
• Goals:
• Profile: Noted orator and pamphleteer.
• "Awaken the sleeping intellect of the
Spaniard to the needs of our country." • Key Work:
• Create a closer, more equal association • Fray Botod (Brother Fatso): A satirical
between the Philippines and Spain. novel exposing the character of
provincial friars. Led to his exile from the
• Membership: Upper-class Filipinos from all
Philippines in 1880.
lowland Christian areas.
• La Solidaridad: Established a biweekly
III. Key Figures and Their Contributions
newspaper in Barcelona in 1889, which became
A. José Rizal (1861-1896)
 the principal organ of the Propaganda • Admitted to the British Museum.
Movement.
• Copied and planned to annotate Antonio
C. Marcelo H. del Pilar (1850-1896) de Morga's Sucesos de las Islas Filipinas.
• Profile: Reform-minded lawyer. • Researched Philippine history.
• Activities: Active in the anti-friar movement in • Corresponded with family, patriots, and
the Philippines until forced to flee to Spain in Blumentritt.
1888.
• Europe (1888-1890): Shuttled between London
• Role in La Solidaridad: Became editor of the and Paris, writing studies and articles. Visited
newspaper and assumed leadership of the Spain, meeting fellow intellectuals.
Filipino community in Spain.
• Belgium/Ghent (1891): Finished and published
D. Dr. Ferdinand Blumentritt El Filibusterismo.
• Profile: Austrian geographer and ethnologist. • Hong Kong (after Europe): Practiced
medicine, planned settlement in Borneo.
• Connection: Met Rizal in Germany and became
a close friend and collaborator. Contributed to La • Philippines (June 1892): Final return.
Solidaridad. Planned an association of Philippine
VI. The Decline of the Propaganda Movement
scholars with Rizal.
• Rizal's Arrest & Exile (July 1892): Led to the
IV. La Solidaridad: The Movement's Voice
dissolution of the Liga Filipina and weakened the
• Established: 1889 in Barcelona by Graciano movement.
López Jaena.
• La Solidaridad's Closure (November 1895).
• Function: Principal organ of the Propaganda
• Deaths of Key Figures: Graciano López Jaena
Movement.
and Marcelo H. del Pilar died in Barcelona in
• Audience: Spain and the Philippines. 1896, due to poverty and disappointment.
• Contributors: Included Rizal, Blumentritt, and • Internal Division: The national movement split
Marcelo H. del Pilar. between:
• Cessation: Went out of business in November • Compromisarios: Ilustrados advocating
1895. for reform and peaceful evolution.
V. Rizal's Travels and Research • Plebeian Constituency: Demanding
revolution and national independence.
• Spain (1882 onwards): Studied medicine at
Universidad Central de Madrid. • Spanish Refusal of Reform: The Spanish
government's unwillingness to implement
• France (1883): Observed medical practices.
genuine reforms shifted the initiative from
• Germany (1886): Published Noli Me Tangere. reformists to revolutionaries.

• Philippines (1887): Brief return, met with VII. Glossary of Key Terms
opposition due to Noli.
• Émigrés: People who have left their country for
• Hong Kong & Macau (late 1887/1888): Left political reasons.
Philippines due to pressure.
• Propaganda Movement: A Filipino intellectual
• Japan (1888): Traveled extensively. movement in Europe during the late 19th century
that aimed to reform Spanish colonial rule in the
• America (April 1888): Visited San Francisco Philippines.
and other states, noting observations.
• England (May 1888 onwards):
• Ilustrados: The educated Filipino class during
the Spanish colonial period.
• Friars: Members of Roman Catholic religious
orders, often holding significant power and land
in the Philippines.
• Liga Filipina: A civic organization founded by
Jose Rizal in 1892, advocating for reforms and
unity among Filipinos.
• Katipunan: A secret revolutionary society
founded in 1892 that sought independence from
Spain through armed revolt.
Study Notes: Standard Costing and Variance • Financial/Non-Financial: Can be
Analysis quantitative or qualitative.
This document provides study notes on Standard Costing • Quantitative Standards: Preferred for
and Variance Analysis, designed to enhance objectivity in measurement. Used across
understanding of key concepts, calculations, and departments (accounting, engineering,
applications. HR, etc.).
Chapter Objectives: • Industry-Specific: International
Financial Reporting Standards (IFRS) in
Upon completion of this material, you should be able to:
financial accounting, tax laws in taxation.
1. Discuss the concept of standards and standard-
Relevance to Management Functions:
setting.
• Planning: Standards serve as a basis for
2. Explain the relevance of different capacity levels
forecasting and projecting expected outcomes.
in standard-setting.
They help determine necessary inputs (costs) for
3. Interrelate standards with planning, organizing, a given output.
directing, and controlling.
• Organizing & Directing: Standards act as
4. Determine and analyze cost variances for direct indicators to monitor production yield,
materials, direct labor, variable overhead, and conformity to policies, and personnel efficiency.
fixed overhead. They guide performance relative to expectations.

5. Compute materials mix and yield variances. • Controlling: Standards are crucial for cost
variance analysis, enabling on-line monitoring,
6. Explain various methods for disposing of cost adjustments, and end-of-line evaluation for
variances. remedial actions.
1. Concept of Standards and Standard-Setting Standard-Setting:
What are Standards? • Nature: Strategic.
• Definition: Expected levels of performance • Who Sets Standards?
established to institute order, discipline,
expectations, and normalcy. • Management

• Usage: Employed by various organizations • Outsourced from independent entities

(manufacturing, service, non-profit, financial) in
• Industrial engineering departments
terms of costs or quantities.
• Involvement of lower-level managers and
• Examples:
personnel (leads to more realistic
• Auto service centers: Set labor time standards).
standards for tasks.
• Impact of Standard Setting:
• Fast-food outlets (e.g., McDonald's):
• Motivation: Can motivate or de-
Standards for meat quantity and cost.
motivate employees. Standards set too
• Hospitals: Standard costs for laboratory high can lead to dysfunctional behavior;
tests, food, laundry per occupied bed. standards set too low can result in
mediocre performance.
• Forms of Standards:
• Relevance of Work: Can give meaning
• Societal Standards: Ethics, values, or insignificance to tasks.
culture, laws.
• Performance Level: Can produce
• Organizational Standards: Policies, excellent or mediocre results.
procedures, rules, manuals.
 • Key Principle: Standards set with the • Description: Provide maximum
participation of those directly involved in allowances for inefficiencies and
operations are more realistic and likely to be met. ineffectiveness. Do not aim for
reasonable output.
2. Relevance of Capacity Levels in Standard-Setting
• Cons: Slows down activities, reduces
Standards can be set at different levels of capacity, each
competitiveness, and is not self-
with implications for planning and control.
sustaining.
Standard Levels:
Capacity Discussion & Formulas:
• Theoretical Standards (Ideal/Maximum
• Budgeted Capacity / Expected Actual
Efficiency/Perfection Standards):
Capacity:
• Description: Set at the highest possible
• Definition: The estimated level of
capacity with no allowances for waste,
performance the company plans to
spoilage, inefficiencies, breakdowns, or
achieve in the next 12 months.
downtimes. Assumes ideal conditions,
most skilled workers, and most efficient • Formula: Budgeted Quantity =
machines. Budgeted Unit of Production × Standard
Quantity per Unit.
• Pros: Can foster a positive attitude
towards quality and excellence if • Standard Capacity:
employees are motivated.
• Definition: The estimated capacity
• Cons: Often unattainable, leading to that should have been used for actual
negative employee reactions and capacity.
defeating motivational purposes.
• Formula: Standard Quantity = Actual
• Usage: Adopted by companies with Total Production (in units) × Standard Quantity
Quality Management (TQM) principles, Rate per Unit Produced.
but often replaced by practical standards
• Normal Capacity / Normal Volume:
for financial planning and control due to
reliability concerns. • Definition: The average production level
over the budget period, often based on
• Practical Standards (Currently Attainable
average sales demand, engineering
Standards):
estimates, or technical specifications. It's
• Description: "Light but attainable." a basis for determining the fixed
Represents normal and expected actual overhead rate.
standards. Includes allowances for
• Formula: Standard Fixed Overhead Rate
normal machine breakdowns,
= Budgeted Fixed Overhead / Normal
downtimes, inefficiencies, waste, and
Capacity.
spoilage. Requires utmost efficiency
under normal circumstances. Capacity vs. Quantity:
• Pros: Reasonable and attainable. • Capacity: Refers to the number of units to be
Variances from these standards are highly produced or actually produced.
useful for management as they signal
deviations needing attention. • Quantity: Refers to the required inputs (e.g.,
pounds, hours, kilograms) to produce such
• Usage: Most commonly used for capacity.
financial planning and control.
3. Interrelating Standards with Management
• Lax Standards (Slack Standards): Functions
Standards are integral to the planning, organizing, • Investigation: Variances should be investigated,
directing, and controlling functions of management. analyzed, and understood to prevent recurrence.
• Planning: Standards provide a benchmark for • Favorable (F) vs. Unfavorable (UF):
setting targets, forecasting costs, and
• Unfavorable (UF): Actual cost >
determining resource needs for planned
Standard cost (overspending). Also
production levels.
called a Debit Variance.
• Organizing: Standards help in structuring
• Favorable (F): Actual cost < Standard
departments and assigning responsibilities based
cost (saving). Also called a Credit
on expected performance levels.
Variance.
• Directing: Standards guide day-to-day
Tolerable/Normal Deviation:
operations by setting performance expectations
for employees and processes. They serve as a • Management establishes a normal range of
compass for operational activities. deviation (e.g., ±5%) around an average
expectation.
• Controlling: This is where standards are most
actively used. By comparing actual results to • Normal Variance: Within the normal deviation
standard costs and quantities, management can range. Typically delegated to junior managers for
identify variances. These variances highlight analysis and action.
areas of inefficiency or exceptional performance,
enabling corrective actions and continuous • Exceptional Variance: Outside the normal
improvement. deviation range. Considered material and
requires top management attention (Management
4. Determining and Analyzing Cost Variances by Exception).
Variances are the differences between actual Production Cost Variances:
costs/quantities and standard costs/quantities. They are
essential for performance evaluation and cost control. Production costs are composed of direct materials, direct
labor, and factory overhead. Each has specific variances.
Types of Budgets for Variance Analysis:
a) Direct Materials Variances:
• Static (Master) Budget Variance: Compares
actual results to the static budget. It's the broadest • Factors: Quantity used and price paid.
type. • 2-Way Analysis:
• Flexible Budget Variance: Compares actual • Materials Price Variance
costs to the standard costs for the actual level of (MPV): (Actual Price - Standard Price) ×
activity. This is the primary focus for operational Actual Quantity Purchased (or Used, if
control. silent).
• Flexible Budget Variance = Actual • Responsibility: Primarily
Costs - Standard Costs (at actual Purchasing Department. Can be
activity level) influenced by Production (rush
• Sales Volume Variance: The difference orders, specific brands).
between the flexible budget and the static • Materials Quantity Variance (MQV) /
budget, reflecting changes in sales Usage Variance: (Actual Quantity Used
volume. - Standard Quantity Allowed) × Standard
Understanding Variances: Price.

• Definition: The difference between actual and • Responsibility: Production

standard cost is a "variance," sometimes called a Department.
"planning gap." • 3-Way Analysis:
 • Materials Price Variance: (Actual Price • Joint Labor Variance: (Actual Rate -
- Standard Price) × Standard Quantity Standard Rate) × (Actual Hours Worked
Purchased (or Used). - Standard Hours Allowed).
• Materials Quantity Variance: (Actual • Key Considerations:
Quantity Used - Standard Quantity
• Standard Hours: Gross basis (including
Allowed) × Standard Price.
allowances).
• Joint Materials Variance: (Actual Price
• Standard Rate: Net basis.
- Standard Price) × (Actual Quantity
Used - Standard Quantity Allowed). c) Factory Overhead Variances:
• Key Considerations: Factory overhead can be variable or fixed, leading to
different variance analyses.
• Price Variance Timing: Ideally
determined at the date of purchase for • Variable Overhead (VOH) Variances: Similar
better control. If silent, use purchase data. to direct materials and labor as VOH is variable.
• Standard Quantity: Should be set on • VOH Spending Variance: (Actual VOH
a gross basis (including allowances for Rate - Standard VOH Rate) × Actual
spoilage, breakdowns). Hours Worked.
• Standard Price: Should be set on a net • Responsibility: Supervisors
basis (e.g., net of discounts). responsible for VOH costs.
b) Direct Labor Variances: • VOH Efficiency Variance: (Actual
Hours Worked - Standard Hours
• Factors: Hours worked and rate per hour.
Allowed) × Standard VOH Rate.
• 2-Way Analysis:
• Responsibility: Production
• Labor Rate Variance (LRV): (Actual Manager (related to labor
Rate - Standard Rate) × Actual Hours efficiency).
Worked.
• Fixed Overhead (FOH) Variances:
• Responsibility: HR Manager,
• FOH Spending Variance: Actual Fixed
Production Supervisor.
Overhead - Budgeted Fixed Overhead (at
• Labor Efficiency Variance normal capacity or standard hours).
(LEV): (Actual Hours Worked -
• Responsibility: Management
Standard Hours Allowed) × Standard
responsible for FOH costs.
Rate.
• FOH Volume Variance (or Capacity
• Responsibility: Production
Variance): Budgeted Fixed Overhead -
Manager.
Standard Fixed Overhead (based on
• 3-Way Analysis: actual hours).
• Labor Rate Variance: (Actual Rate - • Responsibility: Management
Standard Rate) × Standard Hours (reflects utilization of capacity).
Worked.
• Calculation: (Normal Hours -
• Labor Efficiency Variance: (Actual Standard Hours) × Standard
Hours Worked - Standard Hours Fixed Overhead Rate.
Allowed) × Standard Rate.
Multiple-Way Overhead Variance Analysis:
• 2-Way Analysis (Controllable - Volume):
 • Controllable Variance: Actual Factory • Concept: Measures the impact of using a
Overhead - Budgeted Allowance on different proportion (mix) of materials
Standard Hours (BASH). than planned.
• Volume Variance: Budgeted Allowance • Calculation: Compares the cost of actual
on Standard Hours (BASH) - Standard materials used at the standard mix ratio to
Factory Overhead (SH x SR). the cost of actual materials used at the
actual mix ratio.
• 3-Way Analysis (Spending - Efficiency -
Volume): • Formula: (Actual Quantity @ Standard
Mix - Actual Quantity @ Actual Mix) ×
• Spending (Budget) Variance: Actual
Standard Price (or Average Standard
Factory Overhead - Budgeted Allowance
Cost).
on Actual Hours (BAAH).
• Materials Yield Variance:
• Efficiency Variance: Budgeted
Allowance on Actual Hours (BAAH) - • Concept: Measures the impact of
Budgeted Allowance on Standard Hours producing a different total output
(BASH). (Primarily VOH Efficiency). quantity than expected from a given
quantity of materials input.
• Volume Variance: Budgeted Allowance
on Standard Hours (BASH) - Standard • Calculation: Compares the standard cost
Factory Overhead (SH x SR). of actual output to the standard cost of
expected output from the actual materials
• 4-Way Analysis: Splits the Spending Variance
used.
into Fixed Spending Variance and Variable
Spending Variance. • Formula: (Actual Output @ Standard
Yield Rate - Expected Output @ Standard
• Fixed Spending Variance: Actual Fixed
Yield Rate) × Average Standard Output
Overhead - Budgeted Fixed Overhead.
Cost.
• Variable Spending Variance: Actual
• Standard Yield Rate: Standard Output /
Variable Overhead - (Actual Hours ×
Standard Input Quantity.
Standard VOH Rate).
Relationship: Materials Mix Variance + Materials Yield
• Variable Efficiency Variance: (Actual
Variance = Total Materials Quantity Variance.
Hours - Standard Hours) × Standard
VOH Rate. 6. Explaining the Disposition of Cost Variances
• Volume Variance: (Normal Hours - How variances are treated impacts the financial
Standard Hours) × Standard FOH Rate. statements.
• 5-Way Analysis: Further splits the Volume • Normal Variances:
Variance into Capacity Variance and Fixed
• Treatment: Adjusted to Cost of Goods
Efficiency Variance (less common in standard
Sold (COGS) in the period they occur.
costing, more in applied costing).
Treated as period costs.
5. Computing Materials Mix and Yield Variances
• Journal Entry: Variances are closed to
These variances are used when multiple materials are COGS. Favorable variances are debited,
used in production, and they represent components of the unfavorable variances are credited.
materials quantity variance.
• Exceptional (Abnormal) Variances:
• Materials Mix Variance:
• Treatment: Traditionally, allocated
among Work-in-Process Inventory,
Finished Goods Inventory, and COGS.
 • Modern Approach • VOH Efficiency Variance: (AH - SH) ×
(IFRS/GAAP): Abnormal variances are SVOHR
typically expensed in the period incurred,
• FOH Spending Variance: Actual FOH -
charged directly against revenues, similar
Budgeted FOH (at normal capacity)
to period costs.
• FOH Volume Variance: Budgeted FOH (at
• Direct Labor & Overhead: Exceptional
normal capacity) - Standard FOH (at actual
variances are usually allocated to WIP,
hours)
FG, and COGS, or expensed.
• Variance: Actual Cost - Standard Cost.
Summary of Variance Disposition:
• Unfavorable (UF): Actual > Standard.
| Variance Type | Treatment | | :---------------- | :-----------
------------------------------------------------------------------- • Favorable (F): Actual < Standard.
---------------------- | | Normal | Closed to Cost of Goods
Sold (COGS). | | Exceptional | Traditionally: Allocated
to WIP, FG, COGS. <br> Modern/IFRS: Expensed in
the period incurred. |
Uses of Standard Costs:
1. Profit Planning & Cost-Volume-Profit
Analysis: Forecasting scenarios, sensitivity
analysis.
2. Responsibility Accounting: Assigning
controllable costs to managers.
3. Budgeting: Reliable basis for anticipating
budgeted costs.
4. Performance Evaluation: Benchmarks for
evaluating actual performance (variance
analysis).
5. Pricing: Setting sales prices and bid prices.
6. Interim Reporting: Comparing actual costs for
decision-making.
Key Definitions & Formulas Recap:
• Standard Cost: Standard Quantity × Standard
Price.
• Materials Price Variance (MPV): (AP - SP) ×
AQ
• Materials Quantity Variance (MQV): (AQ -
SQ) × SP
• Labor Rate Variance (LRV): (AR - SR) × AH
• Labor Efficiency Variance (LEV): (AH - SH)
× SR
• VOH Spending Variance: (AVOHR - SVOHR)
× AH