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Document Code: DCAVRKMI-F-URFR

MANUEL S. ENVERGA UNIVERSITY FOUNDATION


Lucena City Document Title: Undergraduate Research Final Report
An Autonomous University Page No.: Page 1 of 3
Revision No.: 0
DR. CESAR A. VILLARIBA RESEARCH AND Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE Prepared by: DCAVRKMI
Reviewed by: QMR
QUALITY FORM Approved by: President

PART II

CURRENT PRACTICES REGARDING COST MANAGEMENT SYSTEM

1.1. What are the activities conducted by the company with regards to planning?

-Review of past financial data to provide as supporting data in preparation of the managerial

decisions to be made for the current period.

- Consider recommendations of managers of respective managers of each department in

preparation of the plan.

- Take into account the availability of materials to be procured from suppliers to estimate

production to be made for the current year.

1.2. What are the factors considered in preparing the budget?

- Consider the trend in the market and the capacity of the suppliers to produce raw

materials to be used in the production.

- Expenses to be incurred during the whole period must be taken into account.

- Take into factor if the business is sufficiently funded to support the planned operations for

the current period

1.3. After budgeting, how does the company control its costs?

- Separate personnel are to be assigned so that no one person is responsible for

authorization of the disbursement of funds.

- Eliminate activities that do not contribute to the cost of the product


Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final Report
An Autonomous University Page No.: Page 2 of 3
Revision No.: 0
DR. CESAR A. VILLARIBA RESEARCH AND Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE Prepared by: DCAVRKMI
Reviewed by: QMR
QUALITY FORM Approved by: President

- All activities are properly supervised and communicated to the management

- Cost of activities that deviate from the planned budget are given attention by the

management

1.4. Does the company’s budget allocate unexpected expenses?

- In the preparation of the annual budget; funds are allocated for any unexpected expenses

the business might incur during the operation for the said period.

1.5. Are there any unpredictable events to consider? If so, how does the company address

these changes?

- Yes. Since in the preparation of the annual budget, unforeseen events are taken into

consideration by the company.

- With regard to a possible shortage of raw materials, a separate stock of materials for any

unexpected shortages is included in the procurement of raw materials to be used in the

production.

1.6. When does the business purchase goods for restocking?

- When a budget is prepared and approved by the management, goods are purchased for

the restocking of the supplies of the business. A level for supplies is determined by the

management on when to resupply for materials to be used for production.


Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final Report
An Autonomous University Page No.: Page 3 of 3
Revision No.: 0
DR. CESAR A. VILLARIBA RESEARCH AND Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE Prepared by: DCAVRKMI
Reviewed by: QMR
QUALITY FORM Approved by: President

1.7. Explain how the business calculates for the cost of each product manufactured.

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