Decision making
Decision making selects a course of action from available alternatives in pursuit of objectives. It involves identifying the issue, relevant information, constraints, effects and uncertainty, then making and reviewing a choice. Quantitative techniques can support judgment but do not remove the need to consider ethics, stakeholders and factors that are difficult to measure.
Worked example
A manager compares an in-house service with outsourcing, considering cost, quality, capacity, dependence and data protection before selecting an option and setting review criteria.
Common mistake
Treating the lowest measured cost as automatically the best decision or seeking more information without considering whether it can change the choice.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| ACCA | SBL | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |