During the planning process, a company identifies its goals, its objectives, and its plans for reaching those
Question:
During the planning process, a company identifies its goals, its objectives, and its plans for reaching those goals. To ensure these plans are implemented, managers must control employees'
behavior. One method of control is measuring the outcomes of behavior. Managerial accountants develop accurate and timely measurements of these outcomes.
Match the measurements with the decisions that managers must make.
Measurements:
i. Data that show how reduction in costs will impact revenues ii. Data that show how a product's elimination will affect the company's total profitability iii. Data that show the profitability per unit for each product line and the investments needed to increase production and sales iv. Data that show the costs and revenues of a custom ordered product v. Data that show the costs and revenues for completing a partially completed product Decisions:
a. To continue producing a product or to drop it from a product line
b. To accept or reject a special product order from a customer
c. To complete a product or sell it partially completed at a lower price
d. To produce more of one product or more of another
e. To keep, reduce, or eliminate certain costs
Step by Step Answer:
Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill