E20-1 As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental analysis. 1. The first step in management's decision-making process is, "Determine and evaluate 1 possible courses of action." 2. The final step in management's decision-making process is to actually make the 3. 4. In making business decisions, management ordinarily considers only financial infor 5. Decisions involve a choice among alternative courses of action. decision. Accounting's contribution to management's decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results. mation because it is objectively determined. The process used to identify the financial data that change under alternative courses of action is called incremental analsis. 6. 7. Costs that are the same under all alternative courses of action sometimes affect the 8. When using incremental analysis, some costs will always change under alternative 9. decision. courses of action, but revenues will not. Variable costs will change under alternative courses of action, but fixed costs will not Instructions Identify each statement as true or false. If false, indicate how to correct the statement