Each of the following scenarios requires the use of accounting information to carry out one or more of the following managerial activities: planning, controlling (including performance evaluation), or decision making. Identify the managerial activity or activities applicable for each scenario, and indicate the role of accounting information in the activity.

A. MANAGER: "A supplier approached me recently and offered to sell us a gear that we use in our engines for $20 each. We currently manufacture these gears. I need to know what costs we will avoid if we buy the gear from the supplier."

B. MANAGER: "This report indicates that we have spent 18 percent more on electricity than originally planned. An investigation into the cause has revealed the problem. We have a large number of new employees who lack proper training on the use of our power equip¬

ment. Thus, more machine hours were used than expected causing a higher than normal us¬

age of electricity. By providing the required training, we can eliminate the excess usage."

C. MANAGER: "Our forecasts indicate that we should sell 15 percent more units in the third and fourth quarters than last year. They also indicate that sales will be down 2 per¬

cent for the first and second quarters. Since 70 percent of our annual sales are usually in the third and fourth quarters, this is good news. But I want a projection of the effect these changes in sales will have on profits. I also want to know our expected cash receipts and cash ex¬

penditures on a month-by-month basis. I have a feeling that some short-term borrowing may be necessary."

D. MANAGER: "We need to increase process quality, decrease cycle time, and decrease the production costs. Currently, we are considering the implementation of two different au¬

tomated manufacturing systems. I need to know the future cash flows associated with each system, the time each takes to produce the process output, and the effect each system has on quality."

E. MANAGER: "At our last executive meeting, the marketing manager indicated that a

$500,000 increase in the advertising budget would increase sales by 10 percent. I need to know the effect of this increase in sales and advertising on profits. If profits are projected to increase, then I will approve the marketing manager's request."

F. MANAGER: "Perhaps the Harrison Medical Clinic should not offer a full range of med¬

ical services. Some services seem to be having a'difficult time showing any kind of profit. I am particularly concerned about the mental health service. It has not shown a profit since the clinic opened. I want to know what costs can be avoided if I drop the service. I also want some assessment of the impact on the other services we offer. Some of our patients may choose this clinic because we offer a full range of services."