As a study aid, yourclassmate Pascal Adams has prepared the following list of statements about decision$-$making and incremental

analysis. Identify each statement as true or false.

The firststep in management's decision$-$making procers is$,$ "Determine and evaluate possiblecourses of

action."

Thefinal step in management's decision$-$making process is to actually make the decision.

Accounting'scontribution to management's decision$-$making procersoccurs primarily in evaluating

possiblecourses of action and in reviewing the results.

In making business decisions, managementordinarily considers only financial information because it is

objectively determined.

Decisions involve achoice among alternative courses of action.

The process used to identify the financial data that change under alternative courses of action iscalled

incremental analysis.

Costs that are the same under all alternativecourses of action sometimes affect the decision.

When using incremental analysis, somecostrwill alwayschange under alternative courses of action, but

revenuer will not.

Variablecostswill change under alternative courses of action, but fixed costs will not.