Download and Preview : Chapter 1 Introduction To Managerial Decision Modeling
Chapter 1 Introduction to ManagerialDecision Modeling 2007 Pearson Education What is Decision Modeling .A scientific approach to managerialdecision making The development of a mathematical modelof a real world scenario The model provides insight into the solution of.the managerial problem Types of Decision Models Deterministic ModelsWhere all the input data value are known withcomplete certainty. Probabilistic ModelsWhere some input data values are uncertain Quantitative vs Qualitative DataThe modeling process begins with data Quantitative Data.Numerical factors such as costs and revenues Qualitative DataFactors that effect the environment which aredifficult to quantify Spreadsheets in Decision Making. Computers are used to create and solve Spreadsheets are a convenient alternativeto specialized software Microsoft Excel has extensive modelingcapability via the use add ins . Steps in Decision Modeling1 FormulationTranslating a problem scenario fromwords to a mathematical model2 Solution.Solving the model to obtain the optimal3 Interpretation and Sensitivity AnalysisAnalyzing results and implementing a Example Model Tax ComputationSelf employed couple must estimate and.pay quarterly income tax joint return Income amount is uncertain 5 of income to retirement account up to Personal exemption 2 x 3200 6400 Standard deduction 10 000. No other deductions Tax BracketsPercent ofTaxable Income Taxable Incomeup to 14 600 10 . 14 601 to 59 400 15 59 401 to 119 950 25 Example Model Break Even AnalysisProfit Revenue CostsRevenue Selling price x Num units .Costs Fixed cost Cost per unit x Num units The Break Even Point BEP is thenumber of units where Profit 0 so.Revenue CostsBEP Fixed cost Selling price Cost per unit Possible Problems inDeveloping Decision Models. Defining the Problem Conflicting viewpoints Impact on other departments Beginning assumptions Solution outdated. Possible Problems inDeveloping Decision Models Developing a Model Fitting the textbook models Understanding the model. Acquiring Input Data Using accounting data Validity of data Possible Problems inDeveloping Decision Models. Developing a Solution Hard to understand mathematics Limitations of only one answer Testing the Solution Analyzing the Results. ImplementationTypes of Decision Models Quantitative vs. Qualitative Data Spreadsheets in Decision Making Steps in Decision Modeling Steps in Modeling Example Model: Tax Computation Tax Brackets Percent of Taxable Income Taxable Income up to $14,600 10% $14,601 to $59,400 15% $59,401 to $119,950 25% Example Model: Break-Even Analysis Slide 11 Possible ...
Topic 1 Introduction to Managerial Economics 2009.Spring Some Examples Boeing’s Struggle to Retain Market Leadership The Disney Corporation: Expansion of the Magic Kingdom In What Size Production Runs Should Toyota Produce Its Cars?
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14-* Learning objective number 1 is to prepare and interpret financial statements in comparative and common-size form. 14-* An item on a balance sheet or income statement has little meaning by itself. The meaning of the number can be enhanced by drawing comparisons.
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Lawsuit. You are being sued for $500,000 and estimate that you have a 50 percent chance of losing the case in court (expected value = –$250,000).
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Economics A firm gets an equilibrium when it is able make profits maximizing the level of output (maximizing revenues or minimizing costs) A country reaches equilibrium: “ Allocating limited resources in such a way that the desired goals are reached†(the goal mainly consists in the people’s welfare) Goals of a business firm - Single goal ...
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Management Accounting Financial Accounting Deals with reporting to parties outside the organization Deals with the organization as a whole Highly regulated Primarily uses historical data Management Accounting Deals with activities inside an organization Deals with responsibilities centers within the organization as well as with the organization ...
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Managerial Accounting and Cost Concepts PowerPoint Authors: Jon A. Booker, Ph.D., CPA, CIA Charles W. Caldwell, D.B.A., CMA Susan Coomer Galbreath, Ph.D., CPA Yes, it should be considered because the cost of the train ticket is relevant. 1-* Suppose you are trying to decide whether to drive or take the train to Portland to attend a concert. You ...
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Chapter 2 Managerial Ethics Society’s Expectations from Organizations and Managers Managers regularly make decisions about issues with a social dimension In competitive environment, organizations cannot afford to be seen as socially irresponsible Demonstrating Social Responsibility Social responsibility Social obligation Social responsiveness Relationship Between Social Responsibility and ...
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Manufacturing Cost Flow Cost of Goods Mfd. Finished Goods Cost of Goods Sold Cost of Goods Mfd. Cost of Goods Sold Cost of Goods Sold Work-in-Process Direct Material Direct Labor Overhead Applied Manufacturing Cost Flow Let’s look at the January transactions of Ventra Manufacturing Company. ... Direct Labor Direct Material Manufacturing ...
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A company produces two products, Gamma and Omega. Gamma sells for $10 per unit and Omega sells for $12.50 per unit. Variable costs are $7 per unit of Gamma and $8 per unit of Omega. The company has a capacity of 5,000 machine hours per month. Gamma uses 1 machine hour per unit, and Omega uses 3 machine hours per unit. 1.
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McGraw-Hill/Irwin * * * * * * . * * * * Insert Exhibit 1.14 Here * * * * * * * Ethical Considerations Certified Management Accountants are guided by the IMA Statement of Ethical Professional Practice The statement provides standards on Competence Confidentiality Integrity Credibility Resolution of ethical conflict Common Features of Criminal ...
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Conscience 4. Free speech 5. Due process 6. Life and safety. Justice Approach Standards of equity, fairness, and impartiality. ... Criteria for Ethical Decision Making Social Responsibility Corporate Actions Toward Social Demands Code of Ethics Ethics The code of moral principles and values that govern the behaviors of a person or group with ...
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Helvetica Arial Wingdings Tahoma Book Antiqua Times New Roman Edmonds5e_template (3) 1_Edmonds5e_template (3) WordArt 2.0 Clip Worksheet Slide 1 CHAPTER 11 Chapter Opening Learning Objective Cost Flow in Manufacturing Companies Cost Flow in Service Companies Learning Objective Slide 8 Direct Labor Direct Material Manufacturing Overhead Slide 12 Slide 13 Slide 14 Slide 15 Slide 16 Slide 17 Slide 18 Slide 19 Slide 20 Slide 21 Slide 22 Slide 23 Learning Objective Flow of Overhead Costs Flow of ...
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