Question

- Animal Treats Company has 500 kg of liver-flavoured dog biscuits that are not selling well. The selling price of the biscuits could be reduced from $3.10 to $2.65 per kg. Or, they could be cheese-coated and sold for $4.25 per kg; the additional processing cost would be $0.40 per kg. Cheese-coated biscuits sell very well. Which alternative probably has less uncertainty concerning volume of sales?

a) Reduce the price of liver-flavored biscuits

b) Proceed with the cheese coating

c) Both alternatives are uncertain

d) Uncertainty does not affect this decision

- How does the use of sophisticated information systems affect managerial decision-making?

a) Sophisticated information systems always improve managerial decision-making

b) Sophisticated information systems always provide better information

c) Managers may rely more on information reports than on their own biases

d) The cost of sophisticated information systems may exceed their benefit

- Which of the following statements about performance evaluation is true?

a) Nonfinancial measures are less useful than financial measures because they are not as objective

b) Financial measures are less useful than nonfinancial measures because they are biased

c) A combination of financial and nonfinancial measures gives a more useful picture of organizational performance than either one alone

d) Only one or two nonfinancial performance measures should be used

Answer 1

Question no:1

Answer is option (b) proceed with the cheese Coating

in the Above situation , Biscuits Further proceed as cheese coating will increse the Selling price per kg to $4.25 with an additional processing cost of $0.40 per kg. And also it clearly says that the Cheese coated Biscouits are sold very well in the market at that price. and it Did not say anything about the market of biscouits without cheese coating after reducing the price per kg to $2.65. So Sale after cheese coating will have more certanity in concering of volume of sales. that means it has less uncertanity.