(a). Imagine you are the finance director of a company which is planning to open a new supermarket chain. Prepare a chart similar to that shown in Figure 16.2 which sets out key aspects of the planning, decision making and control.

(b). Give two examples of financial objectives and two examples of non-financial objectives which you might expect of the sales manager of the new supermarket chain.

(c). Explain how management accounting skills would be required in providing product costs comparisons when the supermarket chain becomes operational.

Transcribed Image Text:

Identify the objectives of the proposed shop, in terms of target sales, target profit and target return on capital employed. Planning Locate suitable premises to rent or buy. Collect data about excepted customers, similar shops in the area, complementary businesses, access and expected demand. Decision making Evaluate the options and make a decision, having regard to the objectives. Implement the decision. Control Compare the actual outcome with the plan. Decide how to deal with divergences from plan. Figure 16.2 Managing a decision on the location of a new business