Rebecca owns several successful coffeehouses. Each one has its own manager and is operated independently of the others. Rebecca meets with the manager of each location each month to review operating results. During this meeting, the manager must present a projection of operations for t he coming month. Rebecca reviews the sales projections and any promotional campaigns and entertainment that the manager is planning to use.

Based on the success of her current coffeehouses, Rebecca is considering opening three new facilities. She has found three locations where long-term leases can be obtained. .All locations are in high traffic areas near a mall or shopping center. Rebecca has determined the cost to furnish the shops with equipment and has obtained approval from a bank that will assist in t he required financing.

Required A. In what ways do the coffeehouses utilize managerial accounting in the operational planning process?

B. Explain how Rebecca utilizes strategic planning.