Chapter 14 Notes - Decision Making o Recognize the need for...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Decision Making o Recognize the need for a decision Defining the problem o Identify alternative solutions o Evaluate alternative solutions Accounting information is particular helpful with this step Profit impact decision is one of most important issues in step To understand managers must analyze costs and revenues it affects (relevant costs and revenues) Key question: “what difference does it make?” Company’s profit is important area where decision alternatives make a difference Important to analyze costs and revenue changes caused by each decision alternative to understand profit impact of each alternative o Make the decision Choosing best alternative Relevant Costs and Revenues o Future costs and revenues that will change as a result of a decision o An important part of preparing an analysis for a decision is to identify these What activities are necessary for company to carry out decision? By how much will the costs and/or revenues be affected if company
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/06/2012 for the course COMM 1200 taught by Professor Hockman during the Spring '07 term at Missouri (Mizzou).

Page1 / 2

Chapter 14 Notes - Decision Making o Recognize the need for...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online