ADMS 3510 Lecture Notes - Marginal Cost, Tax Bracket, Fixed Cost

• School: York University
• Department: Administrative Studies
• Course: ADMS 3510
• Professor: Jamison Aldcorn

Document Summary

A good decision process includes a post implementation assessment and explanation of the key causes of variance. Decisions are made based on forecasted future revenue and cost and not on historical revenue and costs. Sources of data: electronic/hardcopy source documents, relevant stories of past experience, expertise in processes and outcomes, analysis from mis , about controllable factors and expert advice and forecast. Quantitative data: measured numerically- expressed in financial and non financial terms. Relevant data: data that changes between available choices. Incorporate risk by quantifying risk( which helps improve mgr"s confidence and align their interest with that of the company) and including it in the forecast. Probabilities permit estimation of a range of predicted outcomes and identification of the most likely to occur, the expected value, which is the sum of risk weighted outcomes. Risk weights are measured as probabilities in decimal format while outcomes are usually measured as financial payouts from pursuing a specific course of action.