what determinations or decisions can be made with the information reported? course hero

How to make short term decisions?

Relevant Information for Short-Term Decision-Making 1 Identify the objective or goal. For a business, typically the goal is to maximize revenues or minimize costs. 2 Identify alternative courses of action that can achieve the goal or address an obstacle that is hindering goal achievement. 3 Perform a comprehensive analysis of potential solutions. This includes identifying revenues, costs, benefits, and other financial and qualitative variables. 4 Decide, based upon the analysis, the best course of action. 5 Review, analyze, and evaluate the results of the decision.

Why is short term decision making important?

Short-term decision-making is vital in any business. Consider this concept in relation to Centralized vs. Decentralized Management and how a company’s approach may affect the decision-making process. Discuss possible short-term issues and decisions, management focuses, and whether or not the centralized versus decentralized style will aid in company flexibility and success. Also, think in terms of how the decision-making process will be evaluated.

Why do managers have to determine if a cost is avoidable or unavoidable?

Management must determine if a cost is avoidable or unavoidable because in the short run, only avoidable costs are relevant for decision-making purposes. An avoidable cost is one that can be eliminated (in whole or in part) by choosing one alternative over another.

What is the difference between short term and long term decisions?

Decisions made by businesses can have short-term effects or long-term impacts, or in some situations, both. Short-term decisions often address a temporary circumstance or an immediate need while long-term decisions align more with permanent problem solving and meeting strategic goals.

What is business decision making?

Business decision-making can be outlined as a process that is applied by management with each decision that is made. The process of decision-making in a managerial business environment can be summed up in these steps. Identify the objective or goal.

Why is the difference in cost between the two pairs of boots considered a relevant cost?

This difference in cost between the two pairs of boots would be designated as a relevant cost because it influences your decision. The two jobs also may have differences in revenues, called a differential revenue. Because the differential revenue influences the decision, it is also a relevant revenue.

Is it easy to change a short term decision?

It is relatively easy to change a short-term decision with minimal impact on the company. Long-term decisions are strategic in nature and typically involve large sums of money. The effects of a long-term decision can have significant financial impact on a company for years.

How to make a decision?

1) Identify the decision- Try to define the nature of the decision you must make. 2) Gather information- Find some needed and pertinent information before you make. 3) Identify alternatives- List all possible and desirable alternatives. 4) Weight the evidence- See what it would feel like to go through each path.

Why are poor decisions made?

Poor decisions are made when people have poor decision-making skills , when they do not consider the consequences of their decisions, when they do not understand all the factors involved in decisions, when they make decisions based on emotion, or when they make decisions impulsively. Every decision has consequences.

What are the consequences of a decision?

These consequences can be immediate or long-lasting. The consequences of decisions can be positive, negative, or a combination of both.