Scribd Logo
Upload

Welcome to Scribd!

  • 31 views

    The Five Steps of The Decision-Making Process

    Uploaded by

    Maha Hamdy
    1) The five-step decision making process includes defining the problem, identifying alternatives, evaluating alternatives, selecting an alternative, and implementing and reviewing the decision. 2) Managers must consider both short-term quantifiable goals and long-term strategic goals that are difficult to quantify when making decisions. 3) Relevant costs are those that can be eliminated or reduced by choosing one alternative over another, while sunk costs are past costs that will not change with the decision and are thus not relevant to the analysis.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    The Five Steps of The Decision-Making Process

    Uploaded by

    Maha Hamdy
    31 views2 pages
    1) The five-step decision making process includes defining the problem, identifying alternatives, evaluating alternatives, selecting an alternative, and implementing and reviewing the decision. 2) Managers must consider both short-term quantifiable goals and long-term strategic goals that are difficult to quantify when making decisions. 3) Relevant costs are those that can be eliminated or reduced by choosing one alternative over another, while sunk costs are past costs that will not change with the decision and are thus not relevant to the analysis.

    Original Description:

    Original Title

    3

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1) The five-step decision making process includes defining the problem, identifying alternatives, evaluating alternatives, selecting an alternative, and implementing and reviewing the decision. 2) Managers must consider both short-term quantifiable goals and long-term strategic goals that are difficult to quantify when making decisions. 3) Relevant costs are those that can be eliminated or reduced by choosing one alternative over another, while sunk costs are past costs that will not change with the decision and are thus not relevant to the analysis.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    31 views2 pages

    The Five Steps of The Decision-Making Process

    Uploaded by

    Maha Hamdy
    1) The five-step decision making process includes defining the problem, identifying alternatives, evaluating alternatives, selecting an alternative, and implementing and reviewing the decision. 2) Managers must consider both short-term quantifiable goals and long-term strategic goals that are difficult to quantify when making decisions. 3) Relevant costs are those that can be eliminated or reduced by choosing one alternative over another, while sunk costs are past costs that will not change with the decision and are thus not relevant to the analysis.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Chapter ( 11 )

    Decision Making with Strategic Emphasis

    * The Five steps of the Decision-Making Process


    In deciding among alternatives for a given situation, managers employ
    the following five-step process :

    - Strategic thinking is important to avoid decisions that might be best only in the short term.
    - A manager most often is forced to think of multiple objectives, both the quantifiable short-term
    goals, and the more strategic, difficult-to-quantify goals.
    Relevant Cost Analysis
    - Relevant Costs : are costs that should make a difference in choosing among the options
    available for that decision. It’s an avoidable cost that can be eliminated (in whole or in part) by
    choosing one alternative over another.

    - Sunk Cost : A cost that has been incurred in the past or is committed for the future is not
    relevant; it is a sunk cost as it will be the same whichever option is chosen. It’s unavoidable cost
    that cannot be eliminated (in whole or in part) by choosing one alternative over another.

    * For a Cost to be Relevant it must :-

    Be Related to the Future. Differ between Alternatives.

    You might also like