Managers Make Decisions from Available Alternatives, but in Reality, There

question 101

Essay

Managers make decisions from available alternatives, but in reality, there are many times when the information needed is not available, unknown, or not knowable. Write a short essay that shows the similarities and differences between programmed and nonprogrammed decisions, and their relationship to certainty and uncertainty. Include examples that you believe represents each type of decision.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production process, used as a measure for allocating labor costs to products or services.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries for managers.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Overhead Incurred

The actual indirect costs experienced by a company during production, including utilities, rent, and salaries of employees not directly involved in production.