Steps in the Decision-Making Process

question 43

Essay

Steps in the decision-making process
The six steps in the decision-making process are to clarify the decision problem, specify the criterion, identify the alternatives, develop a decision model, collect the data and select an alternative.
i. In which step is the management accountant most heavily involved? Explain.
ii. Assume that a decision-making process has been underway for a while and that three alternatives have been developed. At the last step in the process, the managers suddenly realise there is another alternative. Describe which steps in the decision-making process will have to be revisited in order to consider this new alternative.

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Definitions:

20th Century

The period from January 1, 1901, to December 31, 2000, characterized by unprecedented technological, cultural, and political changes.

Underemployed

Refers to individuals who are employed at a job that does not utilize their skills, education, or availability to the fullest, often resulting in working fewer hours than desired.

Skilled Worker

An individual who has specialized training, knowledge, and abilities in a particular field or occupation, often requiring formal qualifications.

Low-Skill Job

Employment that requires minimal specialized skills or education, often characterized by lower wages and typically involving manual or routine tasks.