T ACCOUNT DECISION-MAKING

Some business professionals toss dice to help them make a difficult decision. Others rely upon intuition. The best approach, however, is to come to a decision using some logical process. One method is to use T account decision-making. T account decision-making entails listing and weighing the advantages and disadvantages, then summing the weight for each alternative and selecting the best one.

T account decision-making is beneficial because it is simple and quick and provides a structured approach for making a decision.

for Performing T Account Decision-Making

• Draw a large t on a sheet of paper or use computer software to create one.
• On the left side, list advantages.
• On the right side, list disadvantages.
• Leave a blank column on the far right to calculate the differences.
• Assign a weight for each advantage, such as four points for a great advantage and zero points for no advantage.
• Assign a weight for each disadvantage, such as four points for a great disadvantage and zero points for no disadvantage.
• Sum both columns and subtract the total score of the disadvantages from that of the advantages.
  • Note: A positive result means the advantages outweigh the disadvantages. A negative result means the opposite.