Decision Making: Prospective Outcomes

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What are some objectives other than profit maximization or cost minimization that can be important to an organization?

Increasing competition among employees

Reducing production flexibility

Meeting all environmental requirements (correct)

Lowering employee satisfaction

In decision making, what does the decision maker typically consider when selecting an alternative?

Holiday schedules of employees

Current trends in social media

Short-term interests of the organization

Long-term interests of the owners (correct)

What is the basis for analyzing the economic aspects of an engineering problem?

Historical data from unrelated industries

Gut feelings and intuition

Marketing trends in a different sector

Cash-flow estimates for feasible alternatives (correct)

Why is it important to consider future uncertainties in an engineering economy study?

To ensure accurate forecasts in a changing environment Signup and view all the answers

Which factor is often incorporated into the analysis of cash flows in engineering economy studies?

Inflationary pressures Signup and view all the answers

What is the main focus of selecting the alternative that best serves the long-term interests of an organization?

Achieving long-term sustainability Signup and view all the answers

What is the benefit of using a common unit of measure when analyzing prospective outcomes?

Makes analysis and comparison of alternatives easier Signup and view all the answers

Why should decision makers consider both outcomes expressed in monetary units and those described descriptively?

To account for different types of outcomes Signup and view all the answers

What is an important principle in analyzing future outcomes of alternatives?

Recognizing and making uncertainty explicit Signup and view all the answers

How does revisiting decisions contribute to improved decision making according to the text?

By comparing initial projections with actual results achieved Signup and view all the answers

What is one of the primary aims of engineers according to the text in relation to engineering economy?

Seeking new and wider applications of technical knowledge Signup and view all the answers

What does engineering economy aim to discover about projects or ventures?

Factors that limit success Signup and view all the answers

What is the main advantage of applying principles of engineering economy to decision making?

Provides a quantitative basis for analyzing problems Signup and view all the answers

Which factor is considered easier to evaluate when principles of engineering economy are applied?

Risk and uncertainty Signup and view all the answers

What is typically the most desirable alternative according to principles of engineering economy?

The one with the least expense Signup and view all the answers

How does engineering economy enable decision makers to choose the right decision?

By providing patterns of analysis for rate of return Signup and view all the answers

Why are decisions on future actions considered more valid when principles of engineering economy are applied?

Because they are backed by economic analysis Signup and view all the answers

How do strategic factors contribute to the success of a venture?

By being recognized as outstanding limiting factors Signup and view all the answers

Decision Making: Prospective Outcomes

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