CHARACTERISTIC OR REQUIREMENT

EXTERNAL FINANCIAL STATEMENTS

PLANNING & CONTROLLING ACTIVITIES OR PROCESSES

SHORT TERM STRATEGIC DECISIONS

LONG TERM STRATEGIC DECISIONS

Audience

1. 
Outside investors, creditors, IRS and SEC.

2. 
Plant, production and operating managers, and workers.

3. 
Marketing, product, business and senior managers.

4.
 Marketing, product, business and senior managers

Type of information required

Aggregated quantitative overall financial results.

Disaggregated quantitative and qualitative non-financial information on specific activities and processes.

Disaggregated quantitative and qualitative financial and non-financial information on specific products, services, customers and suppliers.

Disaggregated quantitative and qualitative financial and non-financial information on specific aspects of the company's competitive strategy.

Reporting interval required

Quarterly.

Real time, hourly or daily.

Annual or life cycle unless product design or process changes.

Special studies performed periodically.

Decision Examples

Should an investor purchase, or dispose of the stock or bonds of this company?

What resources are needed for the period? Are specific processes in control?

Should the company continue producing current products and services? What prices should be charged for products and services?

Should the company replace a machine, build a new plant, reengineer a product or process, convert to a JIT system?

MAAW's Chapter 2

MAAW's Book Main Page