The process of choosing a logical choice from the given options. When trying to make a good decision, a person must weigh the pros and cons of each option, and consider all the substitutes. For effective decision making, a person must be able to forecast the consequence of each option as well, and established on all these items, determine which option is the best for that particular situation.
Activity Based Costing System A Tool for Management to Aid Decision Making: Learning Objectives: Define and explain activity based costing (ABC) system. How various manufacturing and non-manufacturing costs are treated under activity based costing system? What are advantages and disadvantages of ABC system Definition
Definition and Explanation of Activity Based Costing System: Learning Objectives: Understand activity based costing system. How it differs from a traditional costing system? Activity based costing (ABC) is a costing method that is designed to provide managers with cost information for strategic and other
Cost Classification for Decision Making (Decision Making Costs): Learning objective of this article: Define, explain, and give examples of cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs. Costs can be classified for decision making. Costs are important feature of
Decentralized Organization Definition: An organization in which decision making is not confined to a few top executives but rather is spread throughout the organization.
Decentralization in Organizations: Learning Objectives: Define and explain the term “decentralization”. What are the advantages and disadvantages of decentralization in business organizations? What are business segments? Define and explain cost, profit, and investment centers. Definition and Explanation of Decentralization A decentralized organization is one