Financial Accounting > EXAM REVIEW > Final Exam Study Topics Chapter 1: Accounting: Information for Decision Making (All)
Describe the four-step framework for decision making • Step 1: Specify the decision problem, including the decision maker’s goals. • Step 2: Identify Options • Step 3: Measure benefits and ... costs to determine the value of each option o Opportunity Cost: Value of the next best alternative • Step 4: Make the Decision – Option with Highest Value Compare individual and organizational decision making • Individual Goals might differ from Organization goals, leading to actions that are not in the firm’s best interest. Individual goals might have several factors • Organizational Goals o Group of individuals engaged in a collectively beneficial mission o More focused goals – (Usually to maximize profit) o Example: Public company, owned by shareholders, goal is to maximize shareholder value Relate planning and control decisions to the four stages of the PIER cycle • Planning Decisions o Choices about acquiring and using resource to deliver products and services to customers o Specifies actions required to achieve a goal o Examining the future decisions • Control Decisions o Motivating, Monitoring, and evaluation performance o Examining Past decisions • PIER Cycle: Planning and Control Cycle – Plan, Implement, Evaluate, and Revise o Can happen in seconds or a months [Show More]
Last updated: 1 year ago
Preview 1 out of 51 pages
Connected school, study & course
About the document
Uploaded On
Jun 19, 2021
Number of pages
51
Written in
This document has been written for:
Uploaded
Jun 19, 2021
Downloads
0
Views
52
In Browsegrades, a student can earn by offering help to other student. Students can help other students with materials by upploading their notes and earn money.
We're available through e-mail, Twitter, Facebook, and live chat.
FAQ
Questions? Leave a message!
Copyright © Browsegrades · High quality services·