The Classical Model of Decision Making Is Considered to Be

question 30

Multiple Choice

The classical model of decision making is considered to be __________, which means that it defines how a decision maker should make decisions, whereas the administrative model of decision making is considered to be __________, meaning that it describes how managers actually make decisions in complex situations rather than dictating how they should make decisions according to a theoretical ideal.

• A) normative; descriptive
• B) normative; prescriptive
• C) descriptive; normative
• D) descriptive; prescriptive
• E) analytic; normative

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Definitions:

Job-Order Costing

A cost accounting system where costs are assigned to specific jobs or batches, used in industries where goods or services are produced upon request.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left and credits on the right.

Overapplied Overhead

A situation where the overhead allocated to products is more than the actual overhead incurred.

Job-Order Costing

An accounting method where costs are assigned to specific jobs or orders, used in manufacturing and service industries for unique or custom orders.