What are the three levels of decision making?
What will be an ideal response?
Decisions are made at three levels:
1. Operational decisions: Decisions that support operational, day-to-day activities are called operational decisions. Typical operational decisions are: How many widgets should we order from vendor A? Should we extend credit to vendor B? In almost all cases, operational decisions need not involve collaboration.
2. Managerial decisions: Decisions that deal with the allocation and utilization of resources are called managerial decisions. Typical managerial decisions are: How much should we budget for computer hardware and programs for department A next year? How many engineers should we assign to project B? In general, if a managerial decision requires consideration of different perspectives, then it will benefit from collaboration.
3. Strategic decisions: Decisions that support broad-scope, organizational issues are called strategic decisions. Typical strategic decisions at the strategic level are: Should we start a new product line? Should we open a centralized warehouse in Tennessee? Should we acquire company A? Strategic decisions are almost always collaborative.
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The fourth paragraph of the audit report:
A. Provides the auditors' opinion on the fairness of the financial statements. B. Provides the auditor's opinion on the effectiveness of internal control. C. Describes the scope of the audit. D. States management's responsibility for the financial statements.
An accrued revenue can best be described as an amount
a. collected and currently matched with expenses. b. collected and not currently matched with expenses. c. not collected and currently matched with expenses. d. not collected and not currently matched with expenses.