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