Question

Gregor Company makes and sells brooms and mops. It 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.(a) Gregor asks its advertising team to develop fresh advertisements to market its newest product.(b) Gregor calculates customer satisfaction scores after introducing its newest product.(c) Gregor compares costs it actually incurred with costs it expected to incur for the production of the new product.(d) Gregor’s design team proposes a new product to compete directly with the Swiffer.(e) Gregor estimates the costs it will incur to distribute 30,000 units of the new product in the first quarter of next fiscal year.

Answer 1

Planning decision: (a), (d), (e)

Control decision: (b), (c)

Step-by-step explanation:

(a), (d) and (e) are planning decisions because it sets which resources will be applied or which actions will be taken to achieve the company’s objectives. On the other hand, (b) and (c) are control decisions as it evaluates through indicators and measures if the company’s objectives have been achieved.