Five-step decision-making role of relevant accounting information. Garnicki Foods makes frozen dinners that it sells through grocery stores. Typical products include turkey dinners, pot roast, fried chicken, and meatloaf. The managers at Garnicki have recently introduced a line of frozen chicken pies. They take the following actions with regard to this decision.
REQUIRED
Classify each action (1–7 below) as a step in the five-step decision-making process (identify the problem and uncertainties; obtain information; make predictions about the future; decide on one of the available alternatives; implement the decision, evaluate performance, and learn). The actions below are not listed in the order they are performed.
1. Garnicki performs a taste test at the local shopping mall to see if consumers like the taste of its proposed new chicken pie product.
2. Garnicki sales managers estimate they will sell more meat pies in their northern sales territory than in their southern sales territory.
3. Garnicki managers discuss the possibility of introducing a new product.
4. Garnicki managers compare actual costs of making chicken pies with their budgeted costs.
5. Costs for making chicken pies are budgeted.
6. Garnicki decides to make chicken pies.
7. The purchasing manager calls a supplier to check the prices of chicken.