DecisionMaking Essay Example | Topics and Well Written Essays - 2000 words

DecisionMaking - Essay Example Generally, decision making consists of the following six steps (Glynn, Before taking the final decision, managers need to get an idea about the effectiveness of the course of action or remedy they intend to apply on a particular problem, so a post decision evaluation via feedback can be worth while. In the managerial decision making process, the management accountants play a decisive role although they neither indulge in making nor in implementing the final decision, the management accountant is held responsible for providing the information at each of the six stages mentioned above. Management is not concerned about how and from what procedures an accountant uses in his analysis and evaluation; eventually the main concern of the management is the information regarding the problems and on the basis of this information, management reaches on a decision (Steffan, 2008). Management accountant is responsible to elaborate the management that the data that is been taken is relevant to provide the information. Relevant data are the single most important ingredient in decision making (Drury, 2007). Relevant data usually consist of relevant cost and relevant revenue which must be considered by the accountants while choosing the alternative course of action; make sure only those cost and revenues will be incurred which are relevant to the decision making. BUDGETING: The budget is a quantitative expression of management objectives and a means of