ECONOMICS

COST ACCOUNTING

INFORMATION FOR DECISION MAKING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A decision made in response to a situation that is unique, is poorly defined and unstructured, and has important consequences
A
nonprogrammed decision
B
programmed decision
C
rational decision
D
classical decision
Explanation: 

Detailed explanation-1: -Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. Examples are decisions to build a new factory, develop a new product or service, and enter a new geographical market.

Detailed explanation-2: -Unstructured decisions: These decisions require judgment, evaluation, and insight to solve the problem. Unstructured means “decision processes that have not been encountered in quite the same form and for which no predetermined and explicit set of ordered responses exists in the organization”.

Detailed explanation-3: -Programmed decisions are concerned with relatively routine problems. They are structured and repetitive. Decisions that are Non-programmed are concerned with unique decisions and unusual problems that are non-repetitive decisions and ill-defined.

Detailed explanation-4: -However, decisions that are unique and important require conscious thinking, information gathering, and careful consideration of alternatives. These are called nonprogrammed decisions.

Detailed explanation-5: -Some examples of non-programmed decisions include adopting and adapting to new technology, acquiring another organization and improving brand image.

There is 1 question to complete.