Plan this decision relates to the choice of a

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Chapter 12 / Exercise 1
MIS
Bidgoli
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PlanThis decision relates to the choice of a resource level. Hiring more staff provides greater capacity, allowing Dr. Shapiro to serve more patients, but also commits Dr. Shapiro to greater costs.Prepare a staffing schedule so that at least one hygienist is available during all times the officeis open. ImplementThis action relates to implementing the choice. The associated decision (we could view each possible schedule as a decision option) relates to how resources, in this case hygienists, will be used to deliver services.Track the number of patients seen by each hygienist per week. EvaluateThis on-going control process helps Dr. Shapiro figure out the efficiency and effectiveness with which he is using costly resources. Moreover, because Dr. Shapiro sees each patient during each visit, he also can personally track the quality of work done by each of his hygienists.Re-evaluate the adequacy of current staffing levels.Revise Over several weeks or months, Dr. Shapiro will get a sense of whether his hygienists are fully utilized. He will also determine whether additional hygienists need to be hired or which, if any, of his hygienists need to be let go.This problem illustrates the classical loop between planning and control. We typically begin with a plan that is based on a set of assumptions (in this case, expected patient volume). These assumptions are our beliefs about the unknown future. We then implement our choices. As time passes, we obtain new information about the actual outcomes (in this case, actual patient volume and the quality of work done by each hygienist). On an on-going basis, this new information will cause us to adjust how we implement our plans (e.g., change the schedule for the next week). Over a period, we will accumulate enough information to revise our original set of assumptions, which might cause us to revisit the decision. The overall point is that there is a natural cycle of doing something based on a set of assumptions, comparing actual outcomes with expectations, and then revising our assumptions. In many instances, the broad loop relating to a decision contains smaller loops within it. For instance, we can think of creating each week’s schedule as forming a separate planning and control cycle.1-34
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Chapter 12 / Exercise 1
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Bidgoli
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Accounting: Information for Decision Making6.(LO-3)The following table lists the four stages of the planning and control cycle and the associated decisions/actions. There are many possible decisions for each category.Stage Action/DecisionPlanOne possible decision is whether to price at the same levels as last year or to raise prices by, for example, 10% to account for the higher cost of flowers this year. Other decisions include whether to hire additional help or how much money to spend on advertising.

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