The Field of Management Science

question 24

Multiple Choice

The field of management science

• A)concentrates on the use of quantitative methods to assist in decision making.
• B)approaches decision making rationally, with techniques based on the scientific method.
• C)is another name for decision science and for operations research.
• D)each of the above is true.

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Definitions:

Operating Segments

Components of an enterprise engaged in business activities from which it may earn revenues and incur expenses, including discrete financial information available.

Gross Margins

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage, indicating the efficiency of sales relative to production costs.

Cost Centres

Parts of an organization that do not directly generate revenue but incur costs, such as departments or divisions, which are important for budgeting and cost control.

Reportable Segments

Operating segments of a business that meet specific criteria requiring separate reporting under financial reporting standards.