Five types of decisions follow. Classify each decision as strategic or operational. Justify your answer. a. A
Question:
Five types of decisions follow. Classify each decision as strategic or operational. Justify your answer.
a. A steel company's managers implement a policy of charging extra handling fees for orders of less than a full truckload. The policy is intended to encourage customers to buy in larger quantities, which will improve the efficiency of the production process.
b. A South American producer of breakfast beverages decides to build a production and distribution facility in the People's Republic of China to service an expanding market.
c. A plant manager decides to use a third shift to increase production, rather than to ask employees to work overtime.
d. An automobile manufacturing company decides to build a new assembly plant. Rather than producing all of the components necessary to make a vehicle, the company decides to buy most of the components from suppliers. This plan permits the company to reduce investment costs for manufacturing equipment.
e. Management for Telxx Communication decides to accept a special order for one of its products at a reduced price because Telxx currently has excess capacity.
Step by Step Answer:
Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill