COST ACCOUNTING
INFORMATION FOR DECISION MAKING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following is not true regarding the rational-economic decision-making model?
|
|
Managers have “perfect” information.
|
|
|
Objectives are known and agreed upon.
|
|
|
It is descriptive in nature.
|
|
|
Managers are rational, systematic and logical.
|
|
|
Managers will work in the best interest of the organization.
|
Explanation:
Detailed explanation-1: -Answer and Explanation: The correct option is d. The rational decision-making model assumes that an individual can identify all the relevant options in an unbiased manner.
Detailed explanation-2: -Which of the following statements regarding the rational decision-making model is INCORRECT? The decision maker should generate alternatives before establishing criteria.
Detailed explanation-3: -The rational model of decision-making uses logical steps to select the best possible solution. It involves analyzing multiple alternatives and using credible data or facts to choose among options.
Detailed explanation-4: -The correct answer is Option B) All the alternatives and their consequences are not known.
There is 1 question to complete.