Chapter 1, Problem 1.30P

1.

To determine

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.

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

2.

To determine

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