COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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This has proved successful for many entrepreneurs and managers who use their experiences and emotions to make a decision
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Approach is favoured by most businesses making strategic and tactical decisions as it is based on logic and evidence and should reduce the risk of failure
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Decisions at this level are routine and can be taken fairly quickly
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Decision uses facts and data in a systematic way in order to arrive at a logical and evidence based decision
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Detailed explanation-1: -Intuitive decision-making can be described as the process by which information acquired through associated learning and stored in long-term memory is accessed unconsciously to form the basis of a judgment or decision.
Detailed explanation-2: -Intuitive decision-making ability is also known as ‘sixth sense’ and involves being able to gather information that other individuals may miss. It is the opposite of rational decision making, which is when individuals use analytics, facts, and a step-by-step process to come to a decision.
Detailed explanation-3: -Entrepreneurial intuition is the affectively charged recognition and evaluation of a business venturing opportunity arising as a result of involuntary, rapid, non-conscious, associative processing.
Detailed explanation-4: -Typical examples where intuition can play an important role in making decisions are: Choosing your life partner, selecting the right car to buy, evaluation of a job, decision about an education, selecting a meal when eating out, selecting the next book to read, decide how to dress for today, and so on.