HORNGRENS COST ACCOUNTING W/ACCESS
HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
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Chapter 1, Problem 1.23E

Planning and control decisions. Gavin Adams is the president of Trusted Pool Service. He takes the following actions, not necessarily in the order given. For each action (a–e) state whether it is a planning decision or a control decision.

  1. a. Adams decides to expand service offerings into an adjacent market.
  2. b. Adams calculates material costs of a project that was recently completed.
  3. c. Adams weighs the purchase of an expensive new excavation machine proposed by field managers.
  4. d. Adams estimates the weekly cost of providing maintenance services next year to the city recreation department.
  5. e. Adams compares payroll costs of the past quarter to budgeted costs.
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