Planning and control decisions. Indigo is a book retailing company. The majority of its sales are made
Question:
Planning and control decisions. Indigo is a book retailing company. The majority of its sales are made at its own stores. These stores are often located in shopping malls or in the downtown central business districts of cities. A small but increasing percentage of sales are made via its Internet shopping division.
The following five reports were recently prepared by the management accounting group at Indigo:
1. Annual financial statements included in the annual report sent to its shareholders 2. Weekly report to the vice-president of operations for each Indigo store—includes rev¬
enue, gross margin, and operating costs 3. Study for vice-president of new business development of the expected revenue and expected costs ofthe Indigo Internet Division selling music products (CDs, cassettes, etc.)
as well as books 4. Weekly report to book publishers and trade magazines on the sales of the top-ten fiction and nonfiction books at both its own stores and in the Internet Division 5. Report to insurance company on losses Indigo suffered at its three Toronto stores result¬
ing from a storm.
Required 1. For each report, identify both a planning-decision and a control-decision use by a manager (either at Indigo or another company).
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9780131971905
4th Canadian Edition
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall