Comment on the Following Statement: "Intuition Results in Random and Often

question 73

Essay

Comment on the following statement: "Intuition results in random and often irrational decisions, and therefore, it should not be used by managers."

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Definitions:

Measures Performance

The process of evaluating the efficiency and effectiveness of actions or operations, typically through quantitative metrics.

Flexible Budget

A budget that is stated as a function of some volume measure, such as units produced. Flexible budgets adjust for changes in volume.

Master Budget

A document that integrates all the estimates from the different departments to establish guidelines and benchmarks for the whole organization.

Favorable Variance

A financial term indicating that actual spending was less than budgeted amounts, or revenue was higher than expected.