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Financial & Managerial Accounting
Found in: Page 1049
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Apple is considering eliminating one of its stores in a large U.S. city. What are some factors that it should consider in making this decision?

Considering the different factors of a decision becomes very important for the company because any wrong decision leads to loss.

See the step by step solution

Step by Step Solution

Step 1:  Definition of Decision Making

Among the different alternatives, choosing the best one to achieve the organization's objectives is termed decision making.

Step 2: Reason

Apple has to consider some decisions in the decision-making. The main and the most crucial factor for this is the effect of the elimination of the store on the profits of the company.

The company also considers whether the customer of this store is transferred to another store or not. If the customers are not transferring, then it might be a wrong decision of the company to eliminate the store in a large city.

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