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Unformatted text preview: Chapter 11: Chapter 11: Decision Making and Relevant Information Horngren 13e Learning Objective 1: Use the following five-step decision-making process to make decisions make decisions: 1. identify the problem and uncertainties, 2. obtain information, 3 make predictions about the future 3. make predictions about the future, 4. make decisions by choosing among alternatives, and 5. implement the decision, evaluate performance, and learn Learning Objective 2: Distinguish relevant from irrelevant information in decision situations. . . only costs and revenues that are expected to occur in the future and differ among alternative courses of action are relevant Learning Objective 3: Explain the opportunity-cost concept and why it is used in decision making in all decisions it is important to decision making. . . in all decisions, it is important to consider the contribution to income forgone by choosing a particular alternative and rejecting others Learning Objective 4: Know how to choose which products to produce when there...
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- Spring '09
- Decision Making