Decision making, Cost Accounting

Decision Making

Nature of Decision-making

Decision-making may fall into any type of the following categories as:

1. Short run operational decisions

2. Short run tactical decisions

3. Longer term strategic planning decisions

Short run operational decisions are made in relation to the accomplishment of short-term output needs. A decision may be made to work overtime in a department in order to contain a job completed in accordance along with a scheduled delivery date to the customer. That decisions are aimed at ensuring about the current business plan is achieved. Short run tactical decisions are related to exact events that management wish to decide upon and that will change the future operation of the business in several ways. Its time horizon is short and it is generally the next twelfth months

Longer term strategic planning is more concerned along with the overall direction of the business plan. It may contain a time horizon of 5 to 10 years. As an example should a decision to be made to install a completely automated production line to replace existing labour intensive machine process.

Posted Date: 2/7/2013 1:21:35 AM | Location : United States







Related Discussions:- Decision making, Assignment Help, Ask Question on Decision making, Get Answer, Expert's Help, Decision making Discussions

Write discussion on Decision making
Your posts are moderated
Related Questions
introduction on proess costing

RC School District has a large number of students in need of remedial instruction.  The superintendent of RC School System can allocated her budget between purchasing X units of re

The total demand (marginal benefit) curve for visiting Yosemite is as follows: Price = 5000-10*NumberOfTrips -10*TonsOfVisibleTrash. a. Suppose the quantity of trash=100 tons. D

The data set for the assignment is about breast cancer.  Some of these data have been changed for the purposes of this assignment so the results from the analysis of this file may

product mix decisions with capacity constraint


Sony manufactures battery for Iphone 6+. The average costs to manufacture batteries are $4 for 10,000 ad $2.67 for 30,000. Assuming the total cost function is linear, what will be

Specific Order Costing This is a broad costing system that is applicable where work jobs consist of separate jobs, batches or contracts.  Every job or contract or batch is a c

Role of Cost Accounting in Business Management The system is a set of interdependent parts that together form a unitary whole such performs some functions. A number of sub sys

Disadvantages of Standard Costing 1. The system of standard costing is very expensive to install : A lot of money is spent in studying output requirements in terms of materia