a.	Annual financial statements included in the annual report sent to its shareholders
b.	Weekly report to the vice-president of operations for each SoftMoc storeincludes revenue, gross margin, and operating costs
c.	Report to insurance company on losses SoftMoc suffered at its new Toronto store resulting from a storm
d.	Weekly report to a new supplier on the sales of that supplier's products both through the SoftMoc stores and by the internet division
e.	Study for vice president of new business development of the expected revenue and expected costs of the SoftMoc internet division selling foot-health products (arch supports, heel inserts, etc.) as well as shoes

SoftMoc is a shoe 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 shopping 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 SoftMoc:

Required

For each report, identify how a manager would use it to make both a planning decision and a control decision (either at SoftMoc or another company).

Question content area bottom

Part 1

Annual financial statements communicate ________(the company's goals/ what was achieved). The annual report is a standardized control report on __________ (customer service/ financial performance/ management style). It is feedback on what the organization _____(accomplished, plans to accomplish/ has for goals in the coming years)

Part 2

b.	Internal periodic reports of financial performance help managers to_______(determine productivity/ find manufacturing flaws/ make informed decisions) and _________(make predictions about the future/evaluate employee morale/ make predictions about the future.)

Part 3

c.

Externally, the insurer will use the report to ________ (estimate the amounts it will reimburse SoftMoc according to the insurance contract/.pay SoftMoc for $1 million of the damages/ reimburse SoftMoc for the maximum value of the damages.) Internally, the managers will use the report to ________( determine whether insurance coverage is needed/ review the adequacy of the insurance coverage relative to its cost.)

Part 4

d.	Managers can compare the results with ________(future results/ last week's results/ the planned numbers) to determine _______ (if the plan was achieved/.the company's future growth prospects/ if the company did better than last week)

Part 5

e.	Studies of new business development opportunities communicate ________(planned costs and revenue/ planned managerial improvements/ planned manufacturing efficiency upgrades/ results of operations from previous years.)