StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Accounting in a Nutshell - Term Paper Example

Cite this document
Summary
This paper 'Accounting in a Nutshell' tells us that managers, professionals, and other key business stakeholders are fighting tooth and nail to ensure that the best approach or model is implemented in making sound decisions for a business. This is in terms of issues such as investment, cost analysis among others…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Accounting in a Nutshell
Read Text Preview

Extract of sample "Accounting in a Nutshell"

In this sense, the seven-step decision-making model will initiate by identification of the decision problem. This is then followed by an analysis of the company strengths, weaknesses, opportunities, and threats behind the execution of the decisions. Thirdly, it is the identification of decision options. Fourth is the gathering of relevant information and data necessary for sound decision-making. Fifth is the ethe valuation of options that are expected to solve the problem Siththam is a selection of the best option while lastly, it is the development of an action plan (Walker, 2009). 

It is crucial to note that a considerable set of five significant decision-making traps place me in danger of clouding my judgment. These traps include the anchoring trap. This trap involves providing judgments or final decisions based on estimated values. In this case study, it is expected that the number of tests will rise to 18,000. This means the value can even be much larger or smaller. Thus, this brings in considerable cloud effect on my final decision (Walker, 2009).

The second decision-making trap that is likely to cloud my final decision is the status quo trap. Here, the main concern is the effect of the decision I make on my reputation at the company. That is, the decision can end up providing a positive or negative effect on my reputation. This is a very disturbing concern in my decision-making process.

Thirdly, it is the sunk cost trap where the focus is making the final decision based on past decisions. This is a key concern in my final decision. That is, am a bit concerned about getting the same results as that of the past decisions that were applied in situations like the one at the company (Walker, 2009).

The fourth decision-making trap that clouds my judgment is that of confirming evidence. That is, my main emphasis has been laid on information that supports my existing decision. In this sense, I try to avoid information that contradicts my preferred judgment.  Last but certainly not the least, is the frame trap where I am ready to averse to the risk of deciding since, I consider it as a way of improving the company gains (Walker, 2009).    

Sound decision-making is a very important requirement in ascertaining that the company is successful in its day-to-day business operations. In this regard, a significant set of tools and techniques will aid in making better decisions for the company.
 

Two main tools will facilitate smooth decision-making for the problem at BSE Veterinary Services. These are a cash flow forecast and a budget. A budget entails a well-organized financial plan for the future. On the other hand, cash flow forecasts aid in determining the future flow of costs and revenues. This information is very crucial in ensuring that sound decisions are made. 

It is also important to clarify that the best technique in making better decisions is to apply a set of seven steps in the decision-making process. These steps begin by clarifying the decision problem followed by specifying the criterion. The third step is to identify the alternatives. The fourth step, which is very important, is developing a decision model. Fifth is the collection of data necessary to support the final decision. Sixth is to select alternatives while the final step is to evaluate decision effectiveness (Walker, 2009).

            It is vital to note that upon a thorough of the costs and benefits behind each of the tests, my final judgment is to go by the decision of allowing for the additional shift necessary to cater for the projected 18,000 tests to ahead as planned (Walker, 2009).

Read More
Tags
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Sunk Cost, Status Quo and Frame Traps, That of Confirming Evidence Term Paper, n.d.)
The Sunk Cost, Status Quo and Frame Traps, That of Confirming Evidence Term Paper. https://studentshare.org/business/1837474-accounting-in-a-nutshell
(The Sunk Cost, Status Quo and Frame Traps, That of Confirming Evidence Term Paper)
The Sunk Cost, Status Quo and Frame Traps, That of Confirming Evidence Term Paper. https://studentshare.org/business/1837474-accounting-in-a-nutshell.
“The Sunk Cost, Status Quo and Frame Traps, That of Confirming Evidence Term Paper”. https://studentshare.org/business/1837474-accounting-in-a-nutshell.
  • Cited: 0 times

CHECK THESE SAMPLES OF Accounting in a Nutshell

Management Accounting of Sober Plc

(a) Calculate the total profit on each of Sober plc's three types of product using each of the following methods to attribute overheads: (i) The existing method based upon labor hours; and (ii) Activity Based Costing.... i) Volume Based Costing using Direct Labor Hours Overheads Overheads Cost Deliveries to retailers 4,800,000 Set-up costs 12,000,000 Purchase orders 7,200,000 Total Overhead Cost 24,000,000 Product Total Labor Hours Labor Hours per unit Labor Rate per unit Sunshine 200,000 100 1,000 Roadster 220,000 138 1,375 Fireball 80,000 200 2,000 Total DLH 500,000 Total Overhead Cost 24,000,000 Total DLH 500,000 Overhead Rate per DLH 48 Sunshine   DLH Assigned 200,000 Overhead Rate 48 Tot....
7 Pages (1750 words) Essay

Balance Sheet - Comparison between the US and UK System

However with the advent of International Financial Reporting Standards (IFRS) and International accounting Standards (IAS), the accounting practices followed in different nations are converging to make the financial statements including balance sheets more comparable in nature....
11 Pages (2750 words) Essay

Capital Investment

This essay "Capital Investment" will attempt to present various techniques of capital investments and project appraisal for a business organization.... Will be present brief descriptions of various project and capital investment techniques, and will sum up the entire discussion and analysis.... ... ...
7 Pages (1750 words) Essay

Interpretation of Financial Statements

This essay 'Interpreting Financial Statements' focuses on financial analysis of the bottom of the examples of Next Plc and Ted Baker Plc.... Both the companies have reduced their investment in the non-current assets in 2010.... Despite this, the revenue of the company has moved up over the last year....
8 Pages (2000 words) Essay

Role of Strategic Management Accounting

in a nutshell SMA plays vital roles in business management such as collecting information that is related to the competing business.... In the paper 'Role of Strategic Management accounting' the author analyzes the role of management accounting which should be an effective and efficient tool used by managers and accountants at all levels in assisting them make decisions in their area of management.... According to the author, management accounting has failed in the application of qualitative features of management as well as the strategic thinking in management....
3 Pages (750 words) Essay

Indigo Limited

Relevant cost is 'A managerial accounting term that is used to describe costs that are specific to management decisions.... This report "Indigo Limited" provides an outline of the relevant costs and non-relevant costs.... The report presents a statement showing the minimum price that the company could bid to secure the manufacture and supply of a one-off batch of 1000 trolleys which are similar to the ones being made by the company....
10 Pages (2500 words) Report

Strategic Financial Management

The study "Strategic Financial Management" discusses various techniques of capital investments and project appraisal for a business organization.... The paper focuses on the importance and understanding of capital appraisal techniques, descriptions of capital investment techniques, and the analysis....
7 Pages (1750 words) Coursework

Interpretation of Financial Statements: Next Plc and Ted Baker Plc

The "Interpretation of Financial Statements: Next Plc and Ted Baker Plc" paper contains the financial statements which provide important financial information about business operations.... With the help of this information, one can compute financial ratios relating to liquidity, profitability, gearing....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us