$1-21$ Strategic decisions and management accounting. Consider the fol$-$

lowing series of independent situations in which a firm is about to make a strategic decision.

Decisions

a$.$ Pedro Phones is about to decide whether to launch production and sale of a cell phone with standard features.

b$.$ Flash Computers is trying to decide whether to produce and sell a new home computer software package

that includes the ability to interface with a sowing machine and a vacuum cleaner. There is no such software

currently on the market.

c$.$ Celine Cosmetics has been asked to provide a "store brand" lip gloss that will be sold at discount retail

stores.

d$.$ Nicholus Meats is considering developing a special line of gourmet bologna made with sun$-$dried tomatoes,

pine nuts, and artichoke hearts.

For each decision, state whether the $$ompany is following a cost leadership or a differentiated product strategy.

For each decision, discuss what information the management accountant can provide about the source of

competitive advantage for these firms.