NAME: Garde, Lovelen E. SECTION: BSBA FM 1-B DATE: Sep.

21, 2022

Module 2 – Basic Cost Management Concepts

Activity 2 – Self Test Exercises

A. Multiple Choice
1. D
2. D
3. B
4. A
5. B
6. A
7. D
8. C
9. A
10. C

C. Case Problem 1
Question: If you were Josie, how would you respond to Gavino’s remarks?

Answer: If I was Josie, I would convince him that he should definitely return to
school. No matter how expensive it is, it is worth the degree and the salary of having a
permanent job. If Gavino would take the full-time position, no matter how hard he
works nor how hard the labor he is doing. His P 1,500 a month isn’t going to cover his
expenses if he ever gets sick due to the said hard labor or any medical emergencies.
Taking these computations, you would get:

Full-time=P1,500x12(months) =P18,000(salary per year)

School expenses
Tuition-------------2, 200
Books-------------- 300
Room & Board----3, 700
Car & Clothes-----2, 400
Other-------------- 3, 000__
TOTAL P11, 600 Salary per year-School expenses=Money left
P18,000-P11,600=P6,400(Money left)
P6,400÷12=P533(money left per month)

Based on the money left, if Gavino took the full-time job he would have an extra
P533 per month given his salary minus his school expenses. It isn’t much to cover his
bills or buying his everyday necessities (groceries, shampoo, etc.). I would say that
taking the full-time position is not of value if you have taken education, got a degree
and took a white collar job like in the offices or businesses where you can physically
work less and avoid hazards working in an open environment.