- Animal Treats Company has 500 kg of liver-flavoureddog biscuits that are not selling well. Theselling price of the biscuits could be reduced from $3.10 to $2.65per kg. Or, they could be cheese-coated and soldfor $4.25 per kg; the additional processing cost would be $0.40 perkg. Cheese-coated biscuits sell very well. Whichalternative probably has less uncertaintyconcerning volume of sales?
a) Reduce the price of liver-flavored biscuits
b) Proceed with the cheese coating
c) Both alternatives are uncertain
d) Uncertainty does not affect this decision
- How does the use of sophisticated information systemsaffect managerial decision-making?
a) Sophisticated information systems always improve managerialdecision-making
b) Sophisticated information systems always provide betterinformation
c) Managers may rely more on information reports than on theirown biases
d) The cost of sophisticated information systems may exceedtheir benefit
- Which of the following statements about performanceevaluation is true?
a) Nonfinancial measures are less useful than financial measuresbecause they are not as objective
b) Financial measures are less useful than nonfinancial measuresbecause they are biased
c) A combination of financial and nonfinancial measures gives amore useful picture of organizational performance than either onealone
d) Only one or two nonfinancial performance measures should beused