COST ACCOUNTING
INFORMATION FOR DECISION MAKING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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thoroughness
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speed
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total reliability
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fully quantified
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Detailed explanation-1: -Intuition differs from rational decision making in that it is faster and does not follow a linear, logical reasoning process that can be thoroughly recon-structed and explained ex post (Barnard, 1938; Simon, 1987).
Detailed explanation-2: -Compared to the rational model, intuitive decision-making allows for quick decisions to be reached, while a degree of gut feeling means managers can eliminate counter-intuitive ideas when drawing conclusions.
Detailed explanation-3: -Advantages of intuitive decision making Based on intuition, a manager is able to make decisions quick and effectively in complex and new situations. Intuition helps to identify a goal in life. It is a part of the subconscious and therefore can help identify dreams which match personal values and goals.
Detailed explanation-4: -Rational Decision Making: The logical way to solving decision problems. Intuitive Decision Making: The decision making done mentally, without calculations, systems and methods supported.
Detailed explanation-5: -Intuition offers a reduction in overall cognitive load and the ability to respond instantly while providing confidence in our knowledge and decision making – even though it may defy analysis (Hogarth, 2010). Such automatic thinking may benefit from, or be hampered by, experience.