1. Explanation Planning and Control Decision: Planning decisions involves selecting organization goals, estimating results under different alternative ways to attain those goals, and deciding how to achieve the expected goals. It involves communicating the goals and how to attain them to the entire firm. Control decisions involve taking actions to implement planning decisions, and deciding on how to evaluate performance and providing feedback and learning to improve future decision making. a. The strategy used is cost leadership and low-priced strategy. The objective is to launch a mobile or cell phone with standard or homogeneous features. Hence, P.P. would prefer to adopt a low-priced strategy to drive sales. To justify a low, P.P. would need to focus on productivity, efficiency, and high quality to reduce its cost, and earn margins. P.P. could even offer discounted prices and sacrifice margins in order to create market with superior quality being the unique selling proposition. b. The strategy used is product differentiation. F.C. would adopt a product differentiation strategy, as it seeks to create a market for its niche product, a computer that can interface with a thermostat and a refrigerator. The key is that there is no such product in the market, so F.C. can create a market for discerning buyers seeking a computer with such unique capabilities... 2. To determine To provide: The information the management accountant can provide about the source of competitive advantage for the firms for each decision.

Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)

15th Edition

ISBN: 9780133781106

Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

Publisher: PEARSON

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Question

Chapter 1, Problem 1.28P

To determine

To state: Whether the firm is following a cost leadership or a product differentiation strategy.

To determine

To provide: The information the management accountant can provide about the source of competitive advantage for the firms for each decision.

Expert Solution & Answer

Chapter 1 Solutions

Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)

Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - What three guidelines help management accountants...

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