Decision Making Questions and Answers

Q: An employee in a company is working out a schedule to ensure that all the sales staff arrive at the company conference on time. This is a:

Correct answer: programmed decisionScheduling travel to a conference is a routine and well-understood problem with a known method, so it can be settled by applying the usual procedure. Nothing about it is novel or contentious, which is exactly what makes a decision programmed.

Q: third step in decision making process is

Correct answer: making predictionsThe five steps run: identify the problem and the uncertainties; obtain information; make predictions about the future; choose among alternatives; and implement, evaluate and learn. Prediction is the third because it depends on the information gathered in the second and must precede the choice made in the fourth.

Q: Decision making step, which consists of organization goals, predicting alternatives and communicating goals is called

Correct answer: planningPlanning is the step at which goals are set, alternatives predicted and the goals communicated to those who must act on them. Control is its counterpart, covering implementation and the feedback from it - and the two together form the cycle within which decisions are made and learned from.

Q: Fourth step in decision making process is

Correct answer: making decisionsHaving predicted the outcomes of the alternatives in the third step, the fourth chooses among them. Implementation and evaluation follow as the fifth, which is where the feedback for the next cycle comes from.

Q: Costs that behaves as irrelevant costs in process of decision making are classified as

Correct answer: past costsA cost already incurred is the same whatever is now decided, so it cannot distinguish between the alternatives and is irrelevant to the choice. Only costs that differ between the alternatives - future and differential - are relevant, and opportunity costs are relevant for precisely that reason: they differ according to what is chosen.

Q: Type of accounting which measures, reports and analysis of the non-financial and financial information to help in decision making is called

Correct answer: management accountingManagement accounting exists to inform decisions inside the organisation, so it reports whatever helps - financial and non-financial, historical and forecast, at whatever level of detail is useful. Financial accounting reports to those outside and is bound by standards and by the requirement of comparability.

Important Instructions

51.

An employee in a company is working out a schedule to ensure that all the sales staff arrive at the company conference on time. This is a:

A.non programmed decision.
B.programmed decision
C.problem decision.
D.crisis decision

Answer: B

Correct answer: programmed decision

Scheduling travel to a conference is a routine and well-understood problem with a known method, so it can be settled by applying the usual procedure. Nothing about it is novel or contentious, which is exactly what makes a decision programmed.

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52.

third step in decision making process is

A.linear predictions
B.dependent predictions
C.making predictions
D.independent predictions

Answer: C

Correct answer: making predictions

The five steps run: identify the problem and the uncertainties; obtain information; make predictions about the future; choose among alternatives; and implement, evaluate and learn. Prediction is the third because it depends on the information gathered in the second and must precede the choice made in the fourth.

Discuss in Forum

53.

Decision making step, which consists of organization goals, predicting alternatives and communicating goals is called

A.organization
B.alternation
C.planning
D.valuing

Answer: C

Correct answer: planning

Planning is the step at which goals are set, alternatives predicted and the goals communicated to those who must act on them. Control is its counterpart, covering implementation and the feedback from it - and the two together form the cycle within which decisions are made and learned from.

Discuss in Forum

54.

Fourth step in decision making process is

A.linear correlation
B.making decisions
C.implement decisions
D.evaluate performance

Answer: B

Correct answer: making decisions

Having predicted the outcomes of the alternatives in the third step, the fourth chooses among them. Implementation and evaluation follow as the fifth, which is where the feedback for the next cycle comes from.

Discuss in Forum

55.

Costs that behaves as irrelevant costs in process of decision making are classified as

A.past costs
B.future costs
C.expected costs
D.opportunity costs

Answer: A

Correct answer: past costs

A cost already incurred is the same whatever is now decided, so it cannot distinguish between the alternatives and is irrelevant to the choice. Only costs that differ between the alternatives - future and differential - are relevant, and opportunity costs are relevant for precisely that reason: they differ according to what is chosen.

Discuss in Forum

56.

Type of accounting which measures, reports and analysis of the non-financial and financial information to help in decision making is called

A.financial accounting
B.management accounting
C.cost accounting
D.decision accounting

Answer: B

Correct answer: management accounting

Management accounting exists to inform decisions inside the organisation, so it reports whatever helps - financial and non-financial, historical and forecast, at whatever level of detail is useful. Financial accounting reports to those outside and is bound by standards and by the requirement of comparability.

Discuss in Forum

Decision Making Questions and Answers

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