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

Calculate the variable cost, Workmen shoes accumulated the following produc...

Workmen shoes accumulated the following production and cost data for the past 5 months. i)  Using the high/low method calculate the variable cost per unit and the fixed cos

Explanation of the fixed cost line, A fixed cost is a cost which can't be e...

A fixed cost is a cost which can't be easily identified or related to a cost per unit or activity of any kind for example a cost which remains constant when production of a service

Process costing, what is accounting treatment for material losses due to ab...

what is accounting treatment for material losses due to abnormal reasons

Determine the velocity impulse, Problem: A satellite is launched into Ear...

Problem: A satellite is launched into Earth orbit by a Delta II launch vehicle (LV).  The Delta LV's engines do not perform as expected, and at upper-stage burnout the satellite

Effects of increasing fixed cost, Jones Company operates within a monopolis...

Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q

Prepare an eps summary for income statement, You are thinking of investing ...

You are thinking of investing in one of two corporations, both in the same industry, the XYZ Corporation or the ABC Corporation. Selected data follows: Sales data for the year e

Allocation of overhead costs, Allocation of Overhead Costs Allocation ...

Allocation of Overhead Costs Allocation of overheads is the term utilized where the overhead cost item can be charged to a exact cost center without the requirement for any es

Assignment, What is the major value of the weighted cost of capital calcula...

What is the major value of the weighted cost of capital calculation for the firm?

Cost accounting, Cost Accounting Cost accounting has been defined via ...

Cost Accounting Cost accounting has been defined via many accounting scholars in different forums. There is no single watertight definition of cost accounting, however the var

Purpose, what are the purposes of cost accounting

what are the purposes of cost accounting

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