Harry,a Manager at Pine and Acorn Consultancy Makes Most of His

question 57

Multiple Choice

Harry,a manager at Pine and Acorn Consultancy makes most of his decisions based on his emotions and feelings.Which of the following approaches to decision making is Harry following?

• A) The old school approach
• B) The risk-averting approach
• C) The intuitive approach
• D) The satisficing approach
• E) The programmed approach

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Definitions:

Materials Cost

The total expense incurred for materials that are used in the production of goods or services.

Work in Process

Inventory that is in the production process but is not yet completed.

Equivalent Units

Equivalent units are a concept in cost accounting used to apportion costs to partially completed goods, calculating them as if they were finished units.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, representing the costs involved in converting raw materials into finished products.