HORNGREN COST ACCT NON-MAJORS W/ACCESS
HORNGREN COST ACCT NON-MAJORS W/ACCESS
17th Edition
ISBN: 9781323703748
Author: Datar
Publisher: Pearson Custom Publishing
Question
Chapter 1, Problem 1.30P

1.

To determine

Planning and Control Decision:

Planning decisions involves selecting organization goals, estimating results under different alternative ways to attain those goals, and deciding how to achieve the expected goals. It involves communicating the goals and how to attain them to the entire firm.

Control decisions involve taking actions to implement planning decisions, and deciding on how to evaluate performance and providing feedback and learning to improve future decision making.

To state: Whether the firm is following a cost leadership or a product differentiation strategy for each firm.

2.

To determine

To provide: The information the management accountant can provide about the source of competitive advantage for the firms for each decision.

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Strategic decisions and management accounting. Consider the following series of independent situations in which a firm is about to make a strategic decision. Decisions A running shoe manufacturer is weighing whether to purchase leather from a cheaper supplier in order to compete with lower priced competitors. An office supply store is considering adding a delivery service that its competitors do not have. A regional retailer is deciding whether to install self-check-out counters. This technology will reduce the number of check-out clerks required in the store. A local florist is considering hiring a horticulture specialist to help customers with gardening questions. For each decision, state whether the company is following a cost leadership or a product differentiation strategy. 2.  For each decision, discuss what information the managerial accountant can provide about the source of competitive advantage for these firms.
Consider the following series of independentsituations in which a firm is about to make a strategic decision.Decisionsa. A running shoe manufacturer is weighing whether to purchase leather from a cheaper supplier in orderto compete with lower priced competitors.b. An office supply store is considering adding a delivery service that its competitors do not have.c. A regional retailer is deciding whether to install self-check-out counters. This technology will reducethe number of check-out clerks required in the store.d. A local florist is considering hiring a horticulture specialist to help customers with gardening questions.1. For each decision, state whether the company is following a cost leadership or a product differentiationstrategy.2. For each decision, discuss what information the managerial accountant can provide about the sourceof competitive advantage for these firms.
Strategic decisions and management accounting. Consider the following series of independent situations in which a firm is about to make a strategic decision. Decisions Julian Phones is about to decide whether to launch production and sale of a cell phone with standard features. Flint Computers is trying to decide whether to produce and sell a new home computer software package that includes the ability to interface with a thermostat and a refrigerator. There is no such software currently on the market. Maria Cosmetics has been asked to provide a “store brand” facial cream that will be sold at discount retail stores. Jansen Computers is considering developing a special line of computers that can be both a tablet and a computer. For each decision, state whether the company is following a cost leadership or a product differentiation strategy. For each decision, discuss what information the management accountant can provide about the source of competitive advantage for these firms.

Chapter 1 Solutions

HORNGREN COST ACCT NON-MAJORS W/ACCESS

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