Rational decision making is a multistep process. In which stage of this process will effective communication to persons affected by the decision be most important?
Answer(s): C
A decision cannot be communicated to affected parties until it has been made. Effective communication is vital to successful implementation of the change resulting from the decision. Follow-up to evaluate the decision will determine whether the decision was correct. One reason desired results may not be obtained is lack of effective commune captions.
When making a decision to increase the robotic automation equipment in an existing face lily, a firm takes all of the following into consideration except
Answer(s): D
A firm considers such factors as price, relationships with suppliers, product demand, avoidable future costs, and economies of scale, opportunity costs, technological efficiency, and the capital-labor ratio when evaluating the purchase of new equipment. The cost of the current facility would not be relevant because it is a sunk cost.
Rational decision making involves all of the following steps except
Answer(s): B
The consideration of choices and the selection of the choice expected to give the best results are key parts of the planner's job. Rational decision making involves the following steps: defining the problem. Obtaining information, identifying alternative courses of action, making predictions about future costs, choosing and justifying an alternative, implementing the decision, and evaluating performance to provide feedback. One of the most common errors in decision making is taking sunk costs into account. Because sunk costs have already been incurred, they can play no role in rational decision making.
The most common difficulty in problem solving is
Defining the problem is the most common difficulty in problem solving. Pitfalls in defining problems include defining the problem according to a solution, concentrating on no pertinent areas, and defining problems by their symptoms.
In the decision-making process, dentil\ting alternative courses of action can be accomplished by many methods. Which of the following is a method of idea generation that reports the first thought to come to mind in response to a given stimulus?
Identifying alternative courses of action can be primary or secondary, or it can be creative. One of the creative methods is free association. Free association is a method of idea generation that reports the first thought to come to mind in response to a given stimulus. The objective is to express the content of consciousness without censorship or control.
Post your Comments and Discuss Financial CMA exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the CMA content, but please register or login to continue.