COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a discrepancy between what exists and what the decision maker desires to exist
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a discrepancy between the ideal and the practical
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something that causes irritation
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something that calls for attention
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Detailed explanation-1: -In decision making, a problem can be defined as a discrepancy between what exists and what the problem solver desires to exist. Answer: TRUE Explanation: A problem is a difference between a desired state and an existing state.
Detailed explanation-2: -The first step in the decision-making process is identifying a problem. 3. The final step in the decision-making process is implementing the chosen alternative.
Detailed explanation-3: -Hence, we conclude that changing the desired outcome is NOT one of the steps involved in the decision-making process.
Detailed explanation-4: -Select an alternative-The sixth step involves choosing the best alternative from among those considered. Implement the alternative-Implementation involves conveying the decision to those affected by it and getting their commitment to it.
Detailed explanation-5: -Decision making is the process of identifying and choosing alternative courses of action. While we want to make rational decisions, sometimes we don’t . . . sometimes we make non-rational decisions.