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The steps in management's decision-making process are listed in random order below. Indicate the order in which steps should be executed.

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1. The steps in management's decision-making process are listed in random order below. Indicate the order in which steps should be executed.
___ Make a Decision
___ Review results of the decision
___ identify the problem and assign responsibility.
___Determine and evaluate possible courses of action.
Solution:
I) Identify the problem and assign responsibility
II) Determine and evaluate possible courses of action
III) Make a Decision
IV) Review results of the decision

2. Bogart Company is considering two alternatives. Alternative A will have revenues of \$ 160,000 and cost of \$ 100,000. Alternate B will have revenues of \$ 180,000 and costs of \$ 125,000. Compare Alternative A with Alternative B showing incremental revenues, costs, and net income.

(see attached file for chart)

Therefore, A is preferred as it has the highest net income. The company will earn an incremental net income of \$45,000 if it chooses A over B.

3. Ortega has made the following statements about decision making and incremental analysis. Identify true or false, and if false correct the statement.
__ The first step in management's decision making process is, "Determine and evaluate possible courses of actions". False. The first step in the management decision making process is the identification of problem and assignment of responsibility.
__ The final step in management's decision making process is to actually make the decision. False. The final step in the ...

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The following posting discusses the management's decision-making processes.

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