ch11 - 3. Qualitative Data included/Qualitative not...

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Chapter 11: Decision Making and Relevant Information  decision   model  is a formal method of making a choice that often involves both  quantitative and qualitative analyses.  Five-Step Decision-Making Process 1. Identify the Problem and Uncertainties 2. Obtain Information 3. Make Predictions About the Future 4. Make Decisions by Choosing Among Alternatives 5. Implement the Decision, Evaluate Performance, and Learn Relevant   costs  are expected future costs Relevant   revenues  are expected future revenues   Relevant : 1. Occur in the future 2. Differ among the alternative courses of action/Same costs not included
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Unformatted text preview: 3. Qualitative Data included/Qualitative not included 5 Types of Decision Making: 1. One-Time-Only Special Offer 2. Make vs. Buy 3. Add/Drop Business Segments 4. Constrained Maximization Managers should choose the product with the highest contribution margin per unit of the constraining resource (factor). Thats the resource that restricts or limits the production or sale of products. 5. Equipment Replacement Decision...
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This note was uploaded on 04/06/2012 for the course ACCT 272 taught by Professor Mensah during the Spring '08 term at Rutgers.

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ch11 - 3. Qualitative Data included/Qualitative not...

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