1. Which of the following is true of a decision model? a. It can be used only to
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Question
1. Which of the following is true of a decision model? a. It can be used only to make short-term or tactical decisions b. It can be used to structure the decision maker's thinking. c. It does not assess qualitative factors like quality, trust, etc. and hence cannot be always relied upon. d. It can be relied upon to ensure that decisions are automated and free from human interference 2. Which of the following statements is true of relevant costs? a. They are sunk costs that differ across alternatives. b. They are future costs that do not differ across alternatives c. They are future costs that differ across alternatives. d. They are sunk costs that do not differ across alternatives.Explanation / Answer
1. Answer is D
As Decision Model is a computer based system that predicts the outcomes of decisions. The relationships between elements of the decision and the forecasted results are mapped in order to understand or control problems.
2. Answer is C u can understand this by just understanding the features of relevant cost the following are 2 distinctive features of Relevant cost
1. Occur in the Future - every decision deals with selecting a course of action based on its expected future results
2. Differ among the alternative courses of action - costs and revenues that do not differ will not matter and will have no bearing on the decision being made.
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