60.1K

Verified Solution

Link Copied!

A.3-FIVE-STEP DECISION-MAKING ROLE OF RELEVANT ACCOUNTING INFORMATION. Honel Foods makes frozen dinners that it sells through grocery stores. Typical products include turkey dinners, pot roast, fried chicken, and meatloaf. The managers at Honel have recently introduced a line of frozen chicken pies. They take the following actions with regard to this decision.

Required Classify each action (1-7 below) as a step in the five-step decision-making process (identify the problem and uncertainties; obtain information; make predictions about the future; decide on one of the available alternatives; implement the decision, evaluate performance, and learn). The actions below are not listed in the order they are performed.

1. Honel performs a taste test at the local shopping mall to see if consumers like the taste of its proposed new chicken pie product.

2. Honel sales managers estimate they will sell more meat pies in their northern sales territory than in their southern sales territory.

3. Honel managers discuss the possibility of introducing a new product.

4. Honel managers compare actual costs of making chicken pies with their budgeted costs.

5. Costs for making chicken pies are budgeted.

6. Honel decides to make chicken pies.

7. The purchasing manager calls a supplier to check the prices of chicken

Answer & Explanation Solved by verified expert

See Answer