Choose an organisation with which you are familiar and a particular decision situation. For that decision describe each step in the decision-making process, as illustrated in Exhibit 19.1.
Exhibit 19.1

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1. Clarify the problem 2. Specify the decision criterion Management 3. Identify the alternative courses of action accountant participates (often as part of cross-functional Quantitative Analysis 4. Collect information about the relevant costs and benefits management team) Primarily the responsibility of the management accountant 5. Compare the costs and benefits of each alternative Qualitative Considerations 6. Select a course of action 7. Evaluate decision effectiveness