1 / 32

Understanding Decision-Making Models and Relevant Information

This chapter explores decision-making models that provide structured approaches for making choices using both quantitative and qualitative analyses. The five-step decision-making process is a key focus, illustrating how managers can effectively evaluate options. Relevant information is defined by its future occurrence and its differentiation between alternative courses of action. Additionally, the concepts of relevant costs and revenues are discussed, emphasizing how expected future expenses and income influence strategic decisions.

ayanna
Télécharger la présentation

Understanding Decision-Making Models and Relevant Information

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. CHAPTER 11 Decision Making and Relevant Information

    2. Decision Models A decision model is a formal method of making a choice, often involving both quantitative and qualitative analyses. Managers often use some variation of the five-step decision-making process.

    3. Five-Step Decision-Making Process

    4. Relevance Relevant information has two characteristics: It occurs in the future It differs among the alternative courses of action Relevant costs—expected future costs Relevant revenues—expected future revenues

    5. Relevant Cost Illustration

More Related