The Rational Model of Decision- Making Assumes All of the Following

question 86

Multiple Choice

The rational model of decision- making assumes all of the following except:

• A)managers operate in an uncertain environment.
• B)managers have the ability to evaluate all alternatives and select the best one.
• C)managers can access all the information they need.
• D)managers agree about what an organization's most important goals are.

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Definitions:

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the gain from the investment by its cost.

Absorption Costing

An approach to product costing that compounds all expenses involved in manufacturing, such as direct materials, labor costs, and all types of overheads, into the product’s final cost.

Markup

The discrepancy between the selling price and the production cost of a product or service, shown as a percentage of the production cost.

Return On Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiencies of several investments.