1. How does a company determine and implement its mission?

A company determine and implement its mission by knowing their goals, purpose, their
working environment, and knowing where they are good at and where they need to improve by
gathering cost management information, etc. These things will help a company to decide where they
should focus and develop strategies that they will implement to achieve their mission. Their mission
and strategies will be disseminated to the whole company to have a proper coordination and
participation.

2. How have firms responded to changes in business?

Firms respond to changes by adapting to the changes. Firms changes their management
organization in respond to the changes and they also improve their working environment by having
technologies that can help them to keep up on the vast changes happening in the business
environment. And now, firms are not only confined about their financial aspect but also to the
nonfinancial aspects because it is becoming more important today. They also now being proactive
than reactive so whatever circumstances happens, they are prepared.

3. Contrast the use of strategic financial measures with the use of strategic nonfinancial measures.

Strategic financial measures are used to determine the success of performance through
revenues, cost, cashflow, and other related to financially while the strategic nonfinancial measures
are used to know the performance through the quality, productivity, service, etc.

4. What are some of the factors in the contemporary business environment that are causing changes
in business firms and other organization, and how are the changes affecting the way those firms and
organizations use cost management information?

How the changes affect the way those

Factors that are causing changes in the
contemporary business environment
1. Increase in global competition
2. Advances in manufacturing technologies
3. Advances in information technologies, the easily obtained and accessed by the
internet and e-commerce
4. Greater focus on the customers
5. New forms of management organization
firms and organizations use cost
management information
Since there is an increase in global
competition, firms used cost management
information to sustain competitiveness.
With this, cost management information
regarding production is more on about the
machineries (whether to replace, repair or
not) rather than the labor work performance.
Cost management information are now
individuals within the firm and the business
environment.
Firms focuses more on nonfinancial
information because the new business
process focuses on the satisfaction of
customers.
a new form of organization has a lot
changes such as focusing more on quality,
on critical success factors and firms take
importance on the nonfinancial information.
 The changes on the three environments are
6. Changes in the political, social and more on the nonfinancial aspects thus,
cultural environment making nonfinancial information important
for firms