In Using Any Quantitative Approach to Management, Mathematical Solutions to Problems

question 48

Multiple Choice

In using any quantitative approach to management, mathematical solutions to problems must be supported by:

• A) extensive databases.
• B) good managerial judgement and an appreciation of the human factor.
• C) comprehensive computer networks.
• D) all of the options listed.
• E) none of the options listed.

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Definitions:

Profit Difference

The change in profit resulting from differences in sales, costs, or other financial factors between two periods.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities required to produce them, aiming to provide more accurate product costing.

Relevant Cost Decision Model

A decision-making tool that focuses on the costs directly related to a specific business decision, ignoring sunk costs and irrelevant expenses.

Recognises Revenues

The process of recording income in the financial statements when it is earned, according to the criteria set out in accounting standards.