Accounting Principles 12th Edition
Accounting Principles 12th Edition
12th Edition
ISBN: 9781119263111
Author: Kimmel, Kieso Weygandt
Publisher: WILEY
bartleby

Videos

Question
Book Icon
Chapter 26, Problem 1Q
To determine

Decision-making process:

Decision making can be defined as the process of making choices through the identification of a decision, collecting information, and assessing alternative resolutions. The implementation of a step-by-step process of decision making helps in making deliberate and effective decisions through proper organization of relevant information and defining alternatives.

To determine: The steps involved in management’s decision making process.

Expert Solution & Answer
Check Mark

Explanation of Solution

Management decision making process does not always adhere to a set pattern due to the dynamic nature of decision making process. However, few essential steps involved in the decision making process are as follows:

  • Identify the problem and assign responsibility.
  • Determine and evaluate possible courses of action, based on the relevant revenue and cost data. The evaluation will reveal the expected overall effect on the net income.
  • Make a decision based on both financial and non-financial information such as information pertaining to revenue and cost and their effect on company’s overall profitability, decision on employee turnover, etc.
  • Review results of the decision. Here, accounting prepares internal reports that review the actual impact of the decision.
Conclusion

Hence, the steps involved in management’s decision making process are explained as above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 26 Solutions

Accounting Principles 12th Edition

Ch. 26 - Prob. 11QCh. 26 - Prob. 12QCh. 26 - Prob. 13QCh. 26 - Prob. 14QCh. 26 - Prob. 15QCh. 26 - Prob. 16QCh. 26 - Prob. 17QCh. 26 - Prob. 18QCh. 26 - Prob. 19QCh. 26 - Prob. 26.1BECh. 26 - Prob. 26.2BECh. 26 - BE26-3 At Bargain Electronics, it costs $30 per...Ch. 26 - Prob. 26.4BECh. 26 - Prob. 26.5BECh. 26 - Prob. 26.6BECh. 26 - Prob. 26.7BECh. 26 - Prob. 26.8BECh. 26 - BE26-9 Swift Oil Company is considering investing...Ch. 26 - Prob. 26.10BECh. 26 - Prob. 26.11BECh. 26 - Prob. 26.12BECh. 26 - Prob. 26.1DIECh. 26 - Prob. 26.2ADIECh. 26 - Prob. 26.2BDIECh. 26 - Prob. 26.2CDIECh. 26 - Prob. 26.2DDIECh. 26 - Prob. 26.2EDIECh. 26 - Prob. 26.3ADIECh. 26 - Prob. 26.3BDIECh. 26 - DO IT! 26-4 Wayne Company is considering a...Ch. 26 - E26-1 As a study aid, your classmate Pascal Adams...Ch. 26 - Prob. 26.2ECh. 26 - E26-3 Moonbeam Company manufactures toasters. For...Ch. 26 - Prob. 26.4ECh. 26 - E26-5 Anna Garden recently opened her own...Ch. 26 - Prob. 26.6ECh. 26 - Prob. 26.7ECh. 26 - Prob. 26.8ECh. 26 - E26-9 Doug’s Custom Construction Company is...Ch. 26 - Prob. 26.10ECh. 26 - Prob. 26.11ECh. 26 - E26-12 Leung Corporation is considering investing...Ch. 26 - P26-2A The management of Shatner Manufacturing...Ch. 26 - P26-3A Last year (2016), Richter Condos installed...Ch. 26 - P26-4A Brislin Company has four operating...Ch. 26 - Prob. 26.5APCh. 26 - Prob. 26.6APCh. 26 - Prob. 26CDCPCh. 26 - Prob. 26WPCPCh. 26 - Prob. 26.1BYPCh. 26 - Prob. 26.2BYPCh. 26 - Prob. 26.3BYPCh. 26 - Prob. 26.4BYPCh. 26 - Prob. 26.5BYPCh. 26 - Prob. 26.6BYPCh. 26 - Prob. 26.7BYP
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Internal Control Components; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=D8SSaqpE6L8;License: Standard Youtube License