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helpmeplease1 helpmeplease1
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2 months ago
Juan Ortiz's taco stand in Bomfa, California, specializes in fresh, handmade tacos. While Juan's business does not yet have a national presence, he does have a strong citywide reputation. Recently, Juan has been receiving orders from other parts of the country through the company's website. He is beginning to think about the potential for growing his out-of-city business.

Required:

a.How can managerial accounting information be useful to Juan as he thinks about
growing
his out-of-city business?
b.What decisions might Juan need to make if he decides to grow his out-of-city
business?
c.What managerial accounting information might Juan find useful as he decides how to
grow
his out-of-city business?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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kogilviekogilvie
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2 months ago
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More solutions for this book are available here
Answers will vary.
a.Managerial accounting information can be useful when growing a business. The
information obtained can be used in the areas of planning, controlling, evaluating, and ultimately for decision making. Juan can use managerial information to predict out-of-city demand, additional costs to meet this new demand, and the income generated by the new demand. After sales are made, Juan will be able to assess whether making out-of-city sales is as profitable as he expected.

b.One important decision that Juan would need to make is the rate at which to grow his
business. In what areas and by how much should he increase capacity of operations? Juan would need to decide what type of strategy, product differentiation versus low-cost production, to pursue when growing his business. He will also need to decide how performance will be evaluated.

c.Budgeting is a useful tool when growing a business and is an important part of the
planning function of managerial accountants. Budget information will provide useful information about how resources are to be allocated.

This verified answer contains over 270 words.
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helpmeplease1 Author
wrote...

2 months ago
Helped a lot
Turboturner
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Yesterday
Thank you, thank you, thank you!
byehoe
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2 hours ago
Thanks for your help!!
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