SANAO, Krizia Nicole P.

ACCN22B: Assignment
BSBA-MA 302 14TH March 2023
Question 1: (12 points)

Give four examples of firms you believe would be significant users of cost management
information and explain why. 

There are various examples of firms or any other business organizations that significantly uses
Cost Management Information. The following are the few examples:

1. Oracle Cloud Infrastructure: Oracle Cloud Infrastructure provides various billing and

cost management tools that make it easy to manage your service costs. Their customers
can estimate costs, create budgets to set spending thresholds, view usage, and visualize
their spending with charts and reports. They can view the subscription details, invoices,
payment history, manage your payment method, and earn rewards.

2. Microsoft: Microsoft’s cost management is a suite of tools that help organizations

monitor, allocate, and optimize the cost of their Microsoft Cloud workloads. Cost
Management is available to anyone with access to a billing or resource management
scope.

3. Procter & Gamble: Procter & Gamble uses cost management information to analyze the
relative profitability of its different products.

4. Small canteen in the school: Using cost management, the canteen will be able to provide
food for students that are cheaper outside the school. These will be an option for those
who bring their food to the school since it will cost them or their parents time. The small
canteen should plan its strategy on how to get the students or customers to buy their
products.

Question 2: (9 point)

Give three examples of firms you believe would require somewhat unique types of cost
management information because of their unique competitive strategy and explain why.  

1. Google: this kind of multinational technology company that competes with other
companies by innovation and forming unique strategies. They must apply cost
management since information technology is useful these days and most people use it.

2. Gucci: this kind of high fashion brand company competes with other companies by
remodeling and product leadership. Using cost management, the company will be able to
budget the cost of the product with a good quality and high fashion style. Attracting
customers to its new ideas is the key to competitive success.
 3. Walmart: Walmart’s accounting system focuses on inventory and cost management,
used to measure its liquidity and profitability. They uses different costing methods in
order to reduce inventory costs and providing accurate product costs. These costing
methods are “Last in First Out” (LIFO) and “First In First Out” (FIFO).

Question 3: (4 points)

What does the term cost management mean? Who in the typical firm or organization is
responsible for cost management. 

According to Cabrera 2020, cost management is a practice of accounting whereas

accountants develop the uses of cost management information. For instance, it is the process of
planning and controlling the costs associated with running a business including collecting,
analyzing and reporting cost information to more effectively budget, forecast and monitor costs.
Hence, Project managers are the one who are responsible for cost management because they are
observant throughout the cost management process to ensure the budget will stay remain and
improve the profitability. Otherwise, their responsibility is to estimate the total costs, plan the
budget, monitor the spendings, and prepare for potential risk.