Which of the Following Statements Is True Regarding the Incrementalist

question 13

Multiple Choice

Which of the following statements is true regarding the incrementalist model?

• A) According to this model decision-making is a process that may evolve unpredictably in an unstructured way and it forces decision makers to think in a haphazard and intuitive way.
• B) This model works best in an environment that changes suddenly or abruptly.
• C) This model implies that managers rarely make major decisions that are radically different from decisions they have made before.
• D) According to this model, decision makers weigh every possible alternative course of action and choose the best solution.

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Definitions:

FIFO inventory cost method

A method to assign costs to inventory that assumes the first items purchased are the first ones sold, primarily affecting the cost of goods sold and ending inventory value.

Cost of merchandise sold

The total cost incurred by a company to sell its merchandise during a specific period, including the cost of the goods themselves plus any additional costs related to their sale.

Perpetual inventory system

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

LIFO cost method

An inventory costing method that assumes the last items purchased or produced are the first ones sold, impacting the cost of goods sold and inventory valuation.