A Well-Designed AIS Can Improve the Decision Making in an Organization.Identify

question 39

Multiple Choice

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.

• A)An AIS provides to its users an abundance of information without any filtering or condensing of such information.
• B)An AIS identifies situations requiring management action.
• C)An AIS reduces uncertainty,and therefore accounting information can provide a basis for choosing among alternative courses of action.
• D)An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making.

Identify costs associated with making or buying decisions and calculate their impact on profitability.

Recognize the importance of contribution margin in making decisions about product discontinuation or continuation.

Determine the relevance of sunk costs in decision-making processes.

Calculate the differential effect on profit from accepting special pricing orders.

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Definitions:

Unconscious Process

Mental activities beyond conscious awareness, influencing perceptions, thoughts, and behaviors without an individual's voluntary control.

Ongoing Fashion

The current style or trend in clothing, accessories, or overall dress that continues to develop or evolve.

Interpret Sentences

The cognitive process of understanding the meaning of phrases and clauses in language.

Effortful

Pertaining to an action requiring considerable mental or physical effort.