COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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maximize his or her decision
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understand his or her position
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accept the truth of a situation
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make any kind of decision
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Detailed explanation-1: -Models that managers use to make decisions include the rational model, the bounded rational model, and the intuitive model. The rational model focuses on being logical and objective. The bounded rational model assumes limitations on the rational model and makes “good enough” decisions.
Detailed explanation-2: -Managers make problem‐solving decisions under three different conditions: certainty, risk, and uncertainty.
Detailed explanation-3: -In decision making, a problem can be defined as a discrepancy between what exists and what the problem solver desires to exist.
Detailed explanation-4: -escalation of commitment. Sticking to a decision despite evidence that it is a mistake is called. Intuition provides a formal analysis method. Which of the following is NOT a way in which intuition guides people who are making decisions?