Management and Organizational Studies 1023A/B Chapter Notes -Financial Accounting, Financial Statement, List Of Fables Characters

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Chapter 3 (pg 55-70) accounting: info for. Decision the choosing of one option form a set of options to achieve a goal. First: specify the problem, including the decision maker"s goals. Individual goals normally differ in the factors they consider and importance of these factors. Understanding the factors that influence decision-makers goals and their relative importance. Max profit is not always the main goal: based on owners motive not on profit motive. Managers normally distinguish themselves by their ability to. Separate the most promising goals/options from the less- fortunate options. Every option presents a unique trade-off between benefits and costs. Contribution of an option to the decision maker"s goals. Not need to be a monetary base. Opportunity cost value to the decision maker of the next best option. Business measures value and opp cost in terms of money, profit. Effective decisions = value of chosen decision exceeds its opp cost.