There Are Four Steps in the Decision-Making Process

question 25

Multiple Choice

There are four steps in the decision-making process. The final step in this process is to:

• A) Choose the course of action which will help the business achieve its goals.
• B) Gather relevant information for the available alternatives.
• C) Identify each situation that requires a decision.
• D) Assess the consequences or outcomes of the alternatives.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting.

Earnings Benchmarks

Standards or metrics against which a company's profitability can be measured.

Discretionary Spending

Expenditures made at the discretion of a business or individual, which are non-essential and can be adjusted or eliminated.

Accounting-Based Incentives

Compensation schemes for employees or executives that are tied to accounting performance measures, such as earnings or return on assets.