Decision making process - part 1
Taught by Nick Drape · AI tutor support included
In this lesson, you'll learn the decision-making process that management accountants use to evaluate capital investment projects—a critical skill for PM, APM, and strategic papers.
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In this lesson
- 0:00 Data for decision making in management accounting
- 1:01 The four phases of capital investment decisions
- 2:22 Qualitative analysis: stakeholders and strategy
- 3:53 Quantitative analysis: investment appraisal techniques
- 4:36 Implementation phase: monitoring and control
- 5:14 Real-life example: new product launch process
- 6:43 Identifying decision phases: worked example
About this lesson
The process has five key phases: creation (spotting opportunities and threats), qualitative analysis (assessing stakeholder impact and strategic fit), quantitative analysis (using investment appraisal techniques like NPV and IRR), implementation (monitoring and controlling the project), and review (post-completion audit). You'll discover why both non-financial and financial analysis matter equally, and how to apply this framework to real business decisions, from launching new products to entering new markets. By understanding this structured approach, you'll be able to evaluate investment decisions with confidence and explain your reasoning clearly in case studies and exams.
Duration: 9m
Transcript
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