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Decisions

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1. Do you agree with the following statements:

"Generally accepted accounting principles (GAAP) assist the development of management accounting systems and Six Sigma is an important management philosophy, but it has little effect on management accountants."

Explain your answer.

2. What is the distinction between the quantitative and qualitative aspects of decisions? What do you see as the advantages of each?

3. "Evaluating performance, decision by decision, is costly. Aggregate measures, such as the income statement, are frequently used." How might the wide use of income statements affect managers' decisions about buying equipment?

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1. Do you agree with the following statements:

Generally accepted accounting principles (GAAP) assist the development of management accounting systems and Six Sigma is an important management philosophy, but it has little effect on management accountants.

I disagree with this statement for a number of reasons. The first is that anyone that is in accounting will rely on GAAP in order to do their job effectively. Each person will rely on the principals as a means in which to make sure that people are doing it with excellence and maintaining high ethical standards through the process. No matter form of accountancy one uses, he or she will always rely on the GAAP. This means that a person cannot avoid it no matter where he or she works at in a company. They will rely on it to stay current fresh in the midst of market condidtions changing so rapdily. However, this has every effect with the profession itself because many believe this to give them guidance in their field, especially when issues arise that one has to decipher from on a regular basis. Without having the GAAP, accountants would not have a clue on what it is they ...

Solution Summary

This solution provided an opinion with the GAAP, quantitatitve and qualitative decisions and performance.

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Decision Making Process: Individual Vs Group

(Scenario) The CEO of your company has been extremely frustrated with what has been occurring within the organization lately. In a recent managers meeting he exclaimed,

"Everyone around this place just follows the status quo. No one ever has any unique ideas on how we can make this organization better. You just sit here and wait for me to give you directions on what to do. Then you follow those directions word-for-word without asking any questions or making any improvements. We need to change this attitude and change it quickly."

He then pointed out each of your group members stated, "I'm assigning you all to a working group. Your goal is to help me fix this problem. I want you to work together, do some research, and come up with concrete ideas and suggestions to fix this problem."

Your group must do analysis, have discussions (either via the small group chat or discussion board) and come to a consensus to prepare a report (paper) that addresses the following:

Part 1 - Define the term "group" after discussion with your fellow team members. Avoid repeating a dictionary definition. For this scenario what would constitute a "group"?

Part 2 - Are there any differences in how individuals and groups make decisions? If so what are they?

Part 3 - Identify the applicable decision concepts (theories, principles, paradoxes, etc.) from our learning all semester (not just the group decision concepts identified in Unit 5) that your group believes will best explain what is occurring within the organization. Be sure your group provides rational to support each of the concepts your group identifies.

Study Material The Psychology of Judgment and Decision making(Plous) Chapter 17-18 and earlier theories and thoughts concerning Decision Making concepts.

Part 4 - Identify at least three (3) recommendations (from your group to the CEO) that will help him improve or overcome the current decision making conditions within the organization.

thank you for your insight and professional thoughts.
very important group assignment. Best Regards

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