ACC 310F Chapter 3: ACC 310F Unit 1
Document Summary
When making decisions, most of us follow a process: we think about what we want out of the decision, identify available options, evaluate each one, and then select the option that best meets our goals. A decision, therefore, is simply choosing one option from a set of options to achieve a goal. As such, we can describe decision making as consisting of the following four steps: Step 1 specify the decision problem, including the decision maker"s goals. Step 3 measure benefits (advantages) and costs (disadvantages) to determine the value (benefits reaped less costs incurred) of each option. Step 4 make the decision, choosing the option with the highest value. This four-step process, the decision framework, applies equally to all decisions, whether they are personal or business-related. As the course unfolds, you will see the general applicability of this framework. For now, let us look closer at each step.
