COST ACCOUNTING
INFORMATION FOR DECISION MAKING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A purchase manager chooses a vendor because he has supplied quality material in the past rather than by the rational way of choosing the vendor with the best price quote. His decision making is through
|
|
Bounded Rationality
|
|
|
Role of Intuition
|
|
|
Rationality
|
|
|
None of the above
|
Explanation:
Detailed explanation-1: -The steps involved in the rational decision-making model are: defining the problem, identifying the decision criteria, allocating weight to criteria, developing alternative solutions, evaluating alternatives, choosing a solution, and implementing it.
Detailed explanation-2: -Rational decision making is the opposite of intuitive decision making. It is a strict procedure utilising objective knowledge and logic. It involves identifying the problem to solve, gathering facts, identifying options and outcomes, analysing them, considering all the relationships and selecting the decision.
There is 1 question to complete.