Ortega 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 possible courses of action”.

2. The final step in management’s decision-making process is to actually make the decision.

3. Accounting’s contribution to management’s decision-making process occurs primarily in evaluating possible courses of action and reviewing the results.

4. In making business decisions, management ordinarily considers only financial information because it is objectively determines.

5. Decisions involve in a choice among alternative courses of action.

6. The process used to identify the financial data that change under alternative courses of action is called incremental analysis.

7. Costs that are the same under all alternative courses of action sometimes affect the decision.

8. When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not.

9. Variable cost will change under alternative course of action, but fixed cost will not.


Identify each statement as True or False. If false indicate how to correct statement.