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What is a product by value analysis and what type of decision does it help managers make?
A product-by-value analysis lists products in descending order of their individual dollar contribution to the firm, as well as the total annual dollar contribution of the product. It helps managers evaluate possible strategies for each product. The product-by-value report focuses management's attention on the strategic direction for each product.
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What is the Difference between value analysis and value chain analysis?
no different it's the same
Why shouldn't managers focus on the current stock value?
Managers should not focus on the current stock value because the value fluctuates daily based on market conditions, profits, management, and current economy. Managers should instead focus on the long term growth of the company.
Should managers focus directly on the actual stock price on the stock's intrinsic value or are both important?
Although managers have to pay attention to stock price as an indicator of the general opinion as to the value of their company, they should focus on managing the company in a sustainable manner and providing the product or service that the company offers efficiently and cost-effectively while complying with applicable laws and regulations.
In a traditionally drawn decision tree a circle represents?
Short answer: a circle represents a "chance node," meaning a chance to which an Expected Monetary Value (EMV) may be assigned to calculate the most likely pay-off. Explanation: according to the PMBOK Guide, 4th Ed. (pgs. 298-299), the inputs to this node are scenario probability and the EMV (expected monetary value) assigned to that chance node, from the decision node (denoted as a square on a decision tree). A chance node leads to a "net path value," otherwise known as a computed value or solution set (represented by a triangle on a decision tree). A decision tree of this type is one of the tools used to determine quantitative risk analysis used to reach a computed optimal solution using probability distributions as a basis.
What is the difference between an open decision making system and a closed decision making system?
A. Closed decision making system:If the manager operates in a known environment then it is a closed decision making system. The conditions of the closed decision making system are:(a) The manager has a known set of decision alternatives and knows their outcomes fully in terms of value, if implemented.(b) The manager has a model, a method or a rule whereby the decision alternatives can be generated, tested, and ranked.(c) The manager can choose one of them, based on some goal or objective.A few examples are:a product mix problem,an examination system to declare pass or fail, oran acceptance of the fixed deposits.B. Open decision making system:If the manager operates in an environment not known to him, then the decision making system is termed as an open decision making system. The conditions of this system are:(a) The manager does not know all the decision alternatives.(b) The outcome of the decision is also not known fully. The knowledge of the outcome may be a probabilistic one.(c) No method, rule or model is available to study and finalize one decision among the set of decision alternatives.(d) It is difficult to decide an objective or a goal and, therefore, the manager resorts to that decision, where his aspirations or desires are met best.Deciding on the possible product diversification lines, the pricing of a new product, and the plant location, are some decision making situations which fall in the category of the open decision making systems. by prerna
What is the Value of ratio analysis to the strategic decision making of an organization?
Importance of financial ratio analysis on investment decision making?
1 Analysis that does not impose the value judgment of one individual on the decision of other is called?
the scientific method of anaiysis
What are the advantages of decision tree analysis?
Advantages of decision tree analysis: Easy to interpret, Possible scenarios can be easily added, Value of different scenarios can be determined.
What is value chain analysis in management accounting?
Value chain analysis is the process to determine which process of production is increasing the value of product and which is not so that the product manufacturing cost can be reduced by eliminating that process from the production chain.
What is the difference between Value Management and Value Engineering?
Value analysis is "A Systematic and objective evaluation of the value of a goods or service, focusing on analysis of function relative to the cost of manufacturing or providing the items or service". value analysis provides insight into the inherent worth of final goods or service, possibly altering specifications and quality requirements that could reduce costs without impairing functional suitability. Value engineering is "Value analysis conducted at the design engineering stage of the product development process." In summary value analysis refers to the analysis of an existing product, service or administrative process while Value engineering refers to the same analysis applied to the product ,services or administrative processes that are under design and have not been finalised.
What is Model-driven DSS?
model driven dss is a decision support system used by managers,staff members and people who interact with the business organization for analyzing semistructured and unstructured decisions.they are usually deployed as software,hardware in standalone PCs.dss basically has 4 analysis models: 1) what if analysis 2)sensitivity analysis 3)goal based analysis 4)optimized analysis
What is present value analysis?
Present value analysis is a financial technique used to evaluate the value of future cash flows by discounting them back to their current value. It takes into account the time value of money, allowing for better decision-making by comparing the present value of costs and benefits. The goal is to determine whether an investment or project is worth pursuing based on its potential return.
Factors affecting value analysis?
Factor affecting statment value analysis
What is the Difference between value analysis and value chain analysis?
no different it's the same
What has the author Andrew Wirth written?
Andrew Wirth has written: 'New-issue costs and project evaluation' 'The value of flexibility and control in decision analysis' 'The accuracy of information'
What is Product value?
to bring out or show the value of a product
Why shouldn't managers focus on the current stock value?
Managers should not focus on the current stock value because the value fluctuates daily based on market conditions, profits, management, and current economy. Managers should instead focus on the long term growth of the company.
