COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Impact on sales to regular customers.
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Have a potential that can lead the company into new sales areas.
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The customer’s ability to maintain an on-going relationship that includes good ordering and paying practices.
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All of the above
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Detailed explanation-1: -Examples of qualitative factors include the reputation and reliability of the suppliers, the long-term outlook regarding production or purchasing the product, and the possibility of changing or altering the decision in the future and the likelihood of changing or reversing the decision at a future date.
Detailed explanation-2: -Qualitative factors that can influence a special order decision are the special order’s impact on sales to regular customers, its potential to lead the company into new sales areas, and the customer’s ability to maintain an ongoing relationship that includes good ordering and paying practices.
Detailed explanation-3: -Qualitative factors are those that data cannot easily quantify or measure. These factors rely on subjective knowledge that comes with understanding the ins and outs of a business and how outside variables can affect them.
Detailed explanation-4: -Quantitative decisions are mostly based on statistical analysis of collected data whereas qualitative decisions are based on many algorithms like type and quality of data, factors that influence collected data, risk assessments etc.