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Decision Making Across the Organization

In: Business and Management

Submitted By ramonicageorge
Words 750
Pages 3
Decision Making Across the Organization
Ramonica George
ACC/561
January 14, 2014
Grace Kalil

Decision Making Across the Organization

When it comes to decision making across the organization, managers must have an understanding of cost effectiveness, selling, pricing, and budgeting. The organization must be able to accurately budget for variable cost as well as fixed cost while maintaining an increase in profit and revenue. In this paper, I will discuss the different view-points of decision making across the organization. I believe that when looking at the behavior of analysis cost it allows me to think of it in the prospect of how my uncle explains the real estate business. This is the study of how the specific cost of an item is a direct effect of the business model. Looking at today’s economics, times and housing market conditions, interest rates have gone up. Last year, you could get a 30 year fixed loan at a 3.5%. In today’s market the same 30-year fixed is going to be at a 4.5%. The housing interest rates have gone up, due to the fact of the economy becoming better. With the economy in a better state, money now is more expensive to borrow because more people are able to borrow it. In today’s market, it is becoming harder for people to find help with their mortgages and a low interest rate. This is an example of Cost behavior analysis. The Martinez Company had decided to introduce a new product. However, the new product can be manufactured by either two methods; they are capital intensive method and labor intensive method. I believe that the best method is labor-intensive method. In order for Martinez Company to succeed, it is important for managers to gain knowledge on accounting. Accounting skills can be used not only to calculate payroll or the revenues generated by the sale of some products; it also can be used also to forecast inventory

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