Steps of management decision making process

Steps of management decision making process
1. Briefly describe the five steps of the management decisionmaking process.
2. Suppose you are considering a part-time job to earn some
extra spending money. List four factors that could affect
that decision and would be included in Step 3 of your
decision-making process.
3. Tom Ellis recently bought a plasma television and has
since stated that he would not recommend it to others.
This indicates that Tom has completed which step of the
decision-making process?
4. What are the criteria for a cost to be considered relevant to
any decision?
5. How is an avoidable cost related to a relevant cost?
6. Explain opportunity cost and list two opportunity costs of
your decision to enroll in classes this semester.
7. Why should opportunity costs be factored into the decisionmaking process, and why is it often difficult to do so?
8. Explain excess capacity and full capacity. Include the implications that each has for a company’s production decisions.
9. How are the concepts of full capacity and opportunity
cost interrelated?
10. What is a special-order decision? Why can managers
ignore fixed overhead costs when making special-order
11. How might the acceptance of a special order have negative
consequences for a company?
12. How does excess capacity impact a special-order decision?
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