Mba515 unit 8 discussion | MBA515 | Park University

Differential analysis, managers are responsible for making decisions.  The ability to make good decisions requires that managers assess the alternatives.  Six key concepts for decision making are listed on page 571 of your Garrison text; they are:

  1. Every decision involves choosing from among at least two alternatives.
  2. Identify criteria for choosing among alternatives by distinguishing between relevant and irrelevant costs and benefits.
  3. Focus on the future costs and benefits as you evaluate the alternatives.
  4. Remember that sunk costs are always irrelevant when choosing among alternatives.
  5. Remember that only future costs and benefits that differ are relevant. Future costs  and benefits that do not differ are irrelevant.
  6. Opportunity costs for the future should be considered.

Making decisions can be challenging.  Managers spend much time and energy in making decisions, such as whether to make or buy components, relocate plants to new locations, even abroad, close plants or segments, accept special orders or offers, etc. How well the organization makes decisions determines an organization’s profitability and success.

In the Unit 8 Discussion, you should begin to understand how decisions are made before working in an organization.  You should appraise the decision making process that occurs in organizations similar to SAS above wherein the company chooses to invest in its workforce by providing work-life balance for employees, libraries, use of green technology, etc.  

As you formulate your initial post, select another company to research similarly.  Perhaps select a company in which you hope to obtain a job.  What characteristics about the company’s organizational culture and corporate philosophy appeal to you?  What alternative companies did you consider and why?  Can you identify whether the company’s decision making is more quantitative or qualitative?  Are any costs or benefits for the resulting culture in the organization shown in their financial statements?  Or if you found another source for relevant information, please identify and cite sources.  Where did you conduct the research?

For decision-making purposes, distinguish the purpose of the two areas of accounting (financial and managerial accounting).     Appraise each area and explain where relevant information for the company can be obtained for decision-making purposes.  In your post, provide and cite any reports with relevant differential information in the Unit 8 Discussion forum.

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