ACCT Decision-making & incremental analysis
In making business decisions, management ordinarily considers only financial information because it is objectively determined
False, considers both financial & nonfinancial information
Costs that are the same under all alternative courses of action sometimes affect the decision
False, costs the are the same are not relevant
When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not
False, either costs or revenues or worth will change under alternative course of action.
Variable costs will change under alternative courses of action, but foxed costs will not
False, financial data changes under alternative courses of action
The first step in management's decision-making process is "Determine and evaluate possible courses of action"
False, identify the decision
The final step in management's decision-making process is to actually make the decision
False, review your decision
Accounting's contribution to management's decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results.
True
Decisions involve a choice among alternative courses of action
True
The process used to identify the financial data that change under alternative courses of actions is called incremental analysis
True