Question

When making a decision, the management accountant follows a five step procedure to assure a strategically-appropriate decision. What are the five steps?

Answer 1

The five steps followed by a management accountant when making a decision are: identifying the problem, gathering relevant information, generating alternative solutions, evaluating alternatives, and making a decision.

Step-by-step explanation:

The five steps followed by a management accountant when making a decision to ensure a strategically-appropriate decision are:

1. Identify the problem: Clearly define the issue or problem that needs to be addressed.
2. Gather relevant information: Collect all necessary data and facts related to the problem.
3. Generate alternative solutions: Brainstorm and come up with different strategies or options to solve the problem.
4. Evaluate alternatives: Assess the advantages, disadvantages, and potential outcomes of each solution.
5. Make a decision: Select the most suitable solution based on the evaluation and implement it.