Required a discuss the types of economic decisions

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Required (a) Discuss the types of economic decisions that they will be required to make, and the information that they will need to make those decisions. Distinguishing non-economic and economic information, identify non-economic decisions that they will also be required to make. Discuss why Luigi and Gina may require the services of an accountant. Examples of economic decisions they will need to make include: The cost of leasing suitable premises (long-term or short-term). The cost of purchasing suitable quantities of different types of seafood from local and overseas suppliers. Import and quarantine costs for exotic items. Minimisation of wastage and disposal costs. Storage costs, including cold storage and freezers. Transport facilities to bring merchandise from the markets to the store (e.g. cooling van) and the cost of transport (e.g. petrol). Staff wages and training. Cost of display equipment, refrigerators, cooking equipment, electricity, and cash registers. Selection and development of a suitable accounting system. Tax implications, including income tax, GST, import duties. Assessment of actual financial performance, in relation to budgeted performance. Examples of non-economic decisions they will also be required to make include: Location of the seafood outlet. The range of seafood demanded by their local resident. Where to get best suppliers for fresh products with reasonable price. Import and quarantine policy (e.g. whether there are certain types of seafood that cannot be imported). Where to hire experienced staff. Determination of hours open for business (do they also open on weekends or public holidays?). Whether to have ‘specials’ on certain days to attract more customers. Based on the above list or any appropriate additional items suggested by students, consider the information needed to make such decisions and then discuss in class whether/where accounting may be expected to provide such information. Of the economic decisions that Luigi and Gina need to make as listed above, there might a number of factors that Luigi and Gina have not considered, particularly those related to development of accounting systems, tax issues, and financial performance assessments. Therefore, Luigi and Gina may require the services of an accountant to assist them in decision-making by providing relevant information related to certain issues .
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