Question

Relevant qualitative factors include any nonquantitative issues that managers should consider before taking a decision. Give examples of questions managers could ask to help them identify relevant qualitative factors?

Answer 1

Quantitaive factors are of utmost importance to managers for taking an informed and accurate decision making on the basis of accounting data avilable.

But Managers can not ignore the qualitative factors which are important to undertsand for the impact of decision making on the company.

Following are the majors factors/questions business management team should consider in terms of qualitative factors before arriving at a decision.

1 How the decision taken by the managers is going to affect the external reputation of the company?

2.Decision like cutting costs and taking cost cutting steps or decision is how going to affect the labour relations as healthy labour relation is equally important.How any decision taken is going to impact adversly or boost the morale of the employees?

3.What will be creditor's perception about the company on any decisions made by the company management?

4.Whether the decision taken for deriving short term quantitative benefits from cutting cost is going to affect the long term benfits and what will be the impact on the company in long term quantitaitive benefit?

5.What will be the competitive adavantage of decision taken ?whether it will be lost as if company is having competitive advantage its shareholders are well awarded for years to come.

Hence these are the questions which the managers should ask to identify the qualitative factors and their impacts on decision making along with the quantitative data.