1. very important, is to identity 2.

After identifying the

and define the problem, or
strategic issues which require
making decisions. This helps
the decision maker to focus on
the right questions involved in
decision
decision problem, the 3. Decision making is
decision maker should choosing between the
specify the criteria upon alternatives. If the objective
which a decision is to be is to increase sales, there
made. Most often, the can be many alternatives to
criteria or the objective achieve this goal.
can be easily quantified

DECISIO
F 1.
N
O

Clarify the Decision

Problems

MAK NG
S

2. Specify the Criteria

GE

3. Developing alternative solutions

A

4. Deciding upon the best solution

I
T

5.
S

Making the decision effective

6. Evaluate performance

4. Selecting data relating to decision

is one of the management
accountant’s most important roles in
an organization. In this decision
making step, manager performs an
analysis of relevant costs and
relevant benefits (revenues) and
other pertinent strategic issues.
5. Based on the relevant cost
and relevant revenue
analysis, the manager, in the
fifth step, selects the best
alternative and executes it.
6. manager evaluates the
performance of the
implemented decision as a
basis for feedback to a
possible reconsideration of
this decision as it relates to
future decisions.