CHRISTIAN KING S.

ILARDE
MBA 206 – COST ACCOUNTING FOR MANAGERS

1. If you have the opportunity to put up a new business, what would it be?
If I have the chance to put up a new business, It would be a Boarding House Business, the
demand for boarding houses specially for students is constant, although it requires huge
amount of capital outlay payback period is more likely assured. A long term investment such as
investment in property provides high returns in the future.

2. Who are the customers you are trying to reach? Which segment do they belong?
Tuguegarao is the center of business and schools not just in Cagayan province but the whole
Cagayan Valley Region, undoubtedly, a lot of students from different parts of the region came
and study here. One of the issues of students as well as their parents is the place where they can
stay and study comfortably.
3. What customer needs/wants/desires that you wish you would provide/satisfy?
As students, greater time is allocated on their studies. In a boarding house were several
students live in, I am looking for a separate space for study and reading. This will help students
focus more on their studies.

4. Why do you wish to provide what the customer needs?

Focus is everything in college. Students need to focus on their readings and studies, so a space
where they can study has a huge impact on their endeavour. This will not only give them
comfort but also focus on study.

5. How will you satisfy such customers?

To satisfy this desire, I must provide them a space for learning and knowledge for them. Equip
with study tables and chairs, fast wifi and books that will help them in their studies.

6. What strategies will you adopt? Why do you think such strategies are appropriate?
As comfort also entails cost, in line with this I will charge them just amount to cover expenses
and give me profit.

7. Which cost concepts are most appropriate for such business?

Cost Volume Profit Analysis will help me determine my pricing and costing strategy. As most of
my equipment and cost in general as to behaviour are fixed cost.