Four categories of managerial tasks
—formally defined decision making is to choose the best option among
the alternative options that are available to you.
—Planning activities involve developing a detailed set of
operational and often financial descriptions of what needs to be done in the
—Day to Day activities.
—Managers have goals and want to achieve them through use of
human and physical resources.
If the organization is not moving in right direction
they have to take corrective action.
The four step framework for decision making
—the decision problem, and decision makers goals
—look at options
—advantages and disadvantages (cost) to determine the value
which is the benefits reaped less cost incurred for each option.
—making a decision from the options with highest value.
That is, the primary role of accounting is to help measure the
costs and benefits of decision options.
How to identify decision options
How to measure benefits of decision options.