Managerial decision making, LIFO, FIFO

Some of the business problems involve determining the problem and the alternatives, obtaining the information relevant to the problem's resolution, establishing where the required information can be obtained, selecting the appropriate methods of analysis or synthesis, considering the problem and the limitations of the information and preparing the results of the investigation for dissemination. The dynamic case approach seemed especially suited to studying these and related, subsidiary issues. This method was therefore employed on an experimental basis in the undergraduate, management cost accounting course at the University of California, Berkeley. In conclusion, the author had been greatly impressed with the pedagogical potentialities of the dynamic case in management accounting courses. Although no empirical evidence can be offered to substantiate a claim of greater efficiency in the learning process the author nevertheless believes it to be the case. And the use of the dynamic case possibly integrated with the business game in an expanded form to cover the other business areas, would seem to be an ideal means of integrating a student's knowledge prior to graduation.

A market economy is characterized by a high degree of individual freedom over a wide range of economic activities. Individuals, the implementers of such activity, are, within a broad framework of legal and social constraints, free, singly or in consort, to enter or exit from enterprises of their choice. Further, they are largely free to distribute the resources they possess among alternative employments. Yet, because these resources are scarce and often versatile, any attempt to maximize their long- run contribution to society involves an allocation problem. Each resource holder making decisions regarding the timing and the employment of each resource held effectuates the allocation task. To achieve rational decisions it is reasonable to assume that the individual resource holder will have need for the factual data necessary to delineate and evaluate various alternatives. Commonly, in the case of capital, the resource allocation procedure will pass through several stages with the final step being the selection of an investment opportunity by individuals acting collectively.