ECONOMICS

Detailed explanation-1: -An important step in management’s decision-making process is to determine and evaluate possible courses of action. In making decisions, management ordinarily considers both financial and nonfinancial information.

Detailed explanation-2: -Try to clearly define the nature of the decision you must make. This first step is very important. Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it.

Detailed explanation-3: -The first step in management’s decision-making process is, “Determine and evaluate possible courses of action.” False: The first step in management’s decision is to identify the problem and assign responsibility. The final step in management’s decision-making process is to actually make the decision.

Detailed explanation-4: -The course of action followed will produce new data, which should be added to the resources already gathered for analysis and interpretation, leading subsequently to a new decision, thus establishing a continuous feedback loop.

Detailed explanation-5: -Determining and evaluating possible courses of action is a step in management’s decision-making process. In incremental analysis, fixed costs may not change under alternative courses of action, while variable costs may change.