SHORT TERM NON ROUTINE DECISION MAKING

One of the primary functions of management is decision-making which involves selecting future courses of action. In making a decision, the costs and benefits of one alternative must be compared to the costs and benefits of other alternatives. Costs that differ between alternatives are called relevant costs. Distinguishing between relevant and irrelevant costs and benefits is critical for two reasons. First, irrelevant data can be ignoredsaving decision makers tremendous amounts of time and effort. Second, bad decisions can easily result from erroneously including irrelevant costs and benefits when analyzing alternatives. To be successful in decision making, managers must be able to tell the difference between relevant and irrelevant data and must be able to correctly use the relevant data in analyzing alternative.

1. Explain short term non-routine decision making in your own understanding.
2. Identify five (5) short-term non-routine decisions and briefly explain its concept.