long term in nature
SAP Business One allows managers and employees to process information more effectively.
Marginal costing is one of the technique of costing and is usefull for the decision making process. As in decision making process decision are always made for the future activities and not for past activities so if exept marginal costing any other costing method for example absorption costing method is used then there is a chance of making wrong decisions as in future decision making past decision and past data is not relevent for decision making.
Relevant cost is that cost which is required for the specific decision making process or the cost which will be change due to specific decision while irrelevant cost has no concern with decision making or any specific decision.
A management accountant might contribute to a formal decision making process by ordering feasibility studies. A management accountant can also tell everyone how much things will cost and how much profit can be made.
System analysis can not completely alter how people in the decision-making process relate. Also, it is only effective where a close relationship exists between decision-maker and analyst.
When they are long term in nature
Decision making is the final steps before operation and after plan. The management ,managers, high officials usually take part in the process of decision making.
In centralized organizations managers are in the know. They are aware of things that are going on in the organization because they are a part of the decision process.
By first doing research, managers can be sure that their decisions are based on actual data (and not guesswork) and that their decisions are relevant to actual market forces (and not only their imagination).
Management refers to the process of organized activities and groups of people achieving a common objective, such as organizational goals. The process of management involves decision making at all levels.
There are two types in connection with the managerial decisions , they are :- 1. Vertical managerial decision , 2. Horizontal managerial decision. 1. Vertical managerial decision this means that the decisions are taken vertically that is from top level to bottom level. The top level managers will take the decisions and pass it towards the middle level and thy will pass it to the bottom level , there will be no consideration for the bottom level managers to play in the decision making process. The power will vested only with top levels. 2. Horizontal managerial decision here the top level managers will consider the ideas and suggesion from the bottom level before taking a decision.
Incident managers begin planning for the demobilization process when?
Managers should examine alternatives before they determine their course of action. Without examining alternatives they may make a bad decision.
The best way to make a decision is by performing a loss-profit analysis. Managers and economists know to choose that option which tends to maximize their profit or minimize their loss, relative to the other choices.
When managers have to make decisions it should be based on thorough research. With operations research, management can implement the best actions based on their research.
Managers research their options by research alternatives for their solutions. Once they have identified a number of alternatives, they choose the best one for their business.
It is impossible to tell the outcome of the decision process without knowing more information. One can assume, however, that the outcome of the decision process is, in fact, a decision.