Think of Bagley's Decision Tree Model of Decision Making

question 41

Essay

Think of Bagley's decision tree model of decision making.Discuss the steps in the decision tree.Is use of this model beneficial for people as well as organizations? How? Describe a specific situation that you experienced in which this model would be helpful.
Harvard Business School Professor Constance Bagley suggests that a decision tree can help managers make more ethical decisions.A decision tree is a graphical representation of the process underlying decisions,and it shows the consequences of making various choices.Follow Bagley's decision tree,by asking the following questions:
(1)Is the proposed action legal?
(2)If yes,does the proposed action maximize shareholder value?
(3)If yes,is the proposed action ethical?
(4)If no,would it be ethical not to take the proposed action?

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Definitions:

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lesser of its historical cost or the market replacement cost, ensuring inventory is not overstated.

Inventory Valuation

The method used to calculate the cost associated with an inventory, which can impact the cost of goods sold and net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's actual financial performance over a specific period.

Rapidly Rising Costs

A situation where the expenses associated with producing goods or services increase at a faster pace than usual, affecting profitability.