Decision making, Cost Accounting

Assignment Help:

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.


Related Discussions:- Decision making

Absorption costing, Absorption Costing The process described in this s...

Absorption Costing The process described in this section by that net overheads are absorbed into production naturally enough is identified as absorption costing.  The absorpti

Calculate the contribution margin ratios, Problem 4-12 Multiproduct CVP [LO...

Problem 4-12 Multiproduct CVP [LO 4] Fidelity Multimedia sells audio and video equipment and car stereo products. After performing a study of fixed and variable costs in the prior

Business process re-engineering help to improve the profits, MLC, which was...

MLC, which was established in year 1998, manufactures a range of garden sheds and summerhouses using timber purchased from a various suppliers.The recently appointed managing direc

Credit sales method, What are the journal entries to recognize each of the ...

What are the journal entries to recognize each of the below events. a.   The firm records bad debt expense of 5% of credit sales, which were $300.  The firm uses the Percentage

Machining costing, what are the factor for setting costing for a certain ma...

what are the factor for setting costing for a certain machining job

What is life-cycle costing, Consider the following information, prepared ba...

Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs

Development and research cost budget, Development and Research Cost Budget ...

Development and Research Cost Budget These are costs that are discretional in nature such as they are determined on need basis via the managers concerned. Research cost is the

Ow much overhead will be assigned to each sailboat produced?, ShipShape Com...

ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two different departments, design

Cost data determination, Cost Data Determination How does one decide th...

Cost Data Determination How does one decide the cost data for products and the services which are the end result of the productive processes? The response to this question is m

Cost of labor, The number of workdays varies from month to month due to the...

The number of workdays varies from month to month due to the number of weekdays, holidays, days of vacation, and sick leave taken in the month. The number of units produced in a mo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd