The main functions of management accounting are planning, decision making, and control. Which of the following activities best describes the planning function?
- Mark Smith, the president of ABC Industries, analyzed cost data for ABC”s Toronto plant and determined that increasing costs were due to increases in material costs.
- Anna Choy developed a 2012 budget for her division.
- Noriyasu Tanaka, the financial officer for Great Homes Inc., prepared a variance report that compared actual costs to the budgeted costs for the year.
- Amandeep Singh compared the costs of two different methods of producing Product A: an automated method and a more labour intensive method. Based on the information, Amandeep chose the automated method because it resulted in substantial cost savings.