COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Certainty
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Risk
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Uncertainty
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Ambiguity
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Detailed explanation-1: -Define risk. Means that a decision has a clear-cut goal and that good information is available but the future outcomes associated with each alternative it are subject to some chance of loss or failure.
Detailed explanation-2: -Decisiveness is the ability to make clear-cut and timely decisions with the appropriate amount of information.
Detailed explanation-3: -Decisions are made under the condition of certainty when the manager has perfect knowledge of all the information needed to make a decision. This condition is ideal for problem solving.
Detailed explanation-4: -Uncertainty means that a decision has clear-cut goals, and that good information is available, but the future outcomes associated with each alternative are subject to chance.