In Which Step of the Decision Process Would Managers Use

question 27

Multiple Choice

In which step of the decision process would managers use the regression analysis estimate of indirect manufacturing costs of alternative products,and choose to introduce the most profitable styles?

• A)Step 1: Identify the Problem and Uncertainties.
• B)Step 2: Obtain Information.
• C)Step 3: Make Predictions about the Future.
• D)Step 4: Make Decisions by Choosing among the Alternatives.
• E)Step 5: Implement the Decision,Evaluate Performance,and Learn.

---

Definitions:

Simple Rate of Return

A method of evaluating the financial performance of an investment by dividing annual incremental operating income by initial investment.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Accounting Net Income

The profit of a company after all expenses and taxes have been deducted from revenues.

Net Present Value Method

A financial analysis tool used to evaluate the profitability of an investment, taking into account the time value of money.