Management and Organizational Studies 1023A/B Chapter Notes - Chapter 4: International Accounting Standards Board, Financial Statement, Relate

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Spe(cid:272)if(cid:455) the de(cid:272)isio(cid:374) pro(cid:271)le(cid:373), i(cid:374)(cid:272)ludi(cid:374)g the de(cid:272)isio(cid:374) (cid:373)aker"s goals. Measure benefits (advantages) and costs (disadvantages) to determine the value (benefits reaped less costs incurred) of each option. Make the decision, choosing the option with the highest value. **this framework applies equally to all decisions (personal or business) only the context differs. Step 2: identify options: some decisions involve a small number of options (ex. gameshow, some decisions have more options (ex. deciding where to go on vacation, business decisions usually have many options. Therefore, the value of some options may differ depending on the decision maker: opportunity cost, the value of what you give up by making your decision, ex. She has two other options- usher at a. If the value to the decision maker of the next best option. football game for 75$, and working at the library for 60$.