The modeling technique to be employed in a situation involving a sequence of events with several possible outcomes associated with each event is
Answer(s): B
Decision trees may be used to describe complex decision situations. Each branch of the tree represents a different decision, and each twig extending from each branch represents several possible outcomes of the decision.
When making predictions about costs, what makes a cost relevant to a decision?
Answer(s): D
To be relevant to a decision, a cost must vary between alternatives and be paid or incurred in the future.
A company is designing a new regional distribution warehouse. To minimize delays in loading and unloading trucks, an adequate number of loading docks must be built. The most relevant technique to assist in determining the proper number of docks is
Queuing theory is a group of mathematical models for systems involving waiting lines. In general, a queuing system consists of a waiting line and a service facilely (loading docks in this case). The objective of queuing theory is to minimize the total cost of the system, including both service and waiting costs, for a given rate of arrivals.
A decision model is a formal means of choosing future courses of action. The programmed decision process and the non programmer decision process are used for making decisions. What is the difference between the two?
Answer(s): C
Management accountants provide qualitative information as well as quantitative financial and 1nonfinancial information useful in applying a decision model, The programmed decision process is used for routine or repetitive decisions. The non programmer decision process is used for complex. no routine situations calling for the use of the problem- solving process. Pour questions need to be answered before making a non programmer decision.
Information processing for decision making is characterized by two styles: anaI3, tic and intuitive. Which of the following is a characteristic of the intuitive style?
Answer(s): A
The intuitive style of information processing for decision making is subjective, inductive, non-routine, and unstructured. Intuitive people may rely on hunches and reach decisions without explicitly applying a formal process. The thinking or analytic style of decision making is objective, deductive, precise, detailed, logical, and repetitive. It tends to prevail in the traditional organization.
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