PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY

Old Nalsian Road, Nalsian, Calasiao, Pangasinan, Philippines 2418

Tel. No. (075)522-8032/Fax No. (075)523-0894/Website: www.philcst.edu.ph
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Philippine Association of Maritime Institutions (PAMI)

ASSIGNMENT 2 to TOPIC 1
CAE24 (Strategic Cost Management)

INSTRUCTIONS:
1. Copy the question below and type your answer in a MSWord file;
2. Save the file as PDF file (so that it cannot be edited once it is submitted);
3. Save it in your Google Drive (create your personal Google Drive if you don’t have one);
4. Link the assignment file in the Online Text of the PhilCST LMS (do not forget to
check the share permission in your Google Drive);
5. Assignments that will not follow the first four (4) instructions will not be accepted
by the LMS / or will not be credited (corrected) by the instructor. Limit your
answer to two hundred (200) words or less;
6. Submit your assignment on or before the deadline (the PhilCST LMS will not accept any
assignment after the deadline); and,
7. Please observe academic honesty (do not submit files that were already submitted by your
classmates).

QUESTION:
In your own opinion can you discuss further the one of the advantages of
Strategic Cost Management which is to provide a framework for
decisionmaking? Cite an example.

In competitive environment, businesses make decision everyday to have a better

position in comparison to its competitors. And for that to happen, businesses must
have a competitive strategy. One of the advantages of Strategic cost management is
it provides a framework for decision-making. It enhances the decision making by
providing more structured concepts and data for better result. It reminds all staffs and
 executives about their single goal, shaping the brighter future of the company. For
example, For example, the decisions to outsource a
component could result in a number of activities causing additional overhead. A
sophisticated understanding of costs would enable manager to outsource only parts
that are not strategically significant or are easy for outsiders to manufacture
It provides a framework for decision-making by owners and managers.

Cost management is far more concerned with management's use of cost information for decision-making.

ASSESSMENT:
The essay question will be assessed with a maximum score of 30 points. The rubric
below will guide you on how your answer will be rated.
Needs
Excellent Very Good Average Unacceptable
Improvement
(5) (4) (3) (1)
(2)
Most of the
The idea has
The answer is ideas are The answer The idea is not
no clear
clear and focused and contains ideas well-defined
IDEAS sense of
focused. have some which are basic and has too
purpose or
good and general many topics.
central theme.
details.
The writing
The order The The sentences lacks a clear
structure of organization is within the sense of
Most of the direction. There
information is ideas good with little paragraph
ORGANIZATION compelling and confusion. make sense is no
presented are identifiable
is well organized. but are not in
organized. order. internal
structure.
A number of A number of
So many
spelling, spelling,
spelling,
punctuation, punctuation,
Virtually no Few spelling, punctuation,
and and
spelling, punctuations, and
SENTENCE grammatical grammatical
punctuation, or and minor grammatical
STRUCTURE errors are errors are
grammatical grammatical errors that
present but do present that
error. errors. interfere with
not really affect already affects
the thought.
the thought. the thought.