Final answer:
The preferred process for valuing inventory by managers for decision making is the cost/benefit analysis. This analysis compares the costs and benefits of a decision. A structured decision process is used to select the best concept for designing products.
Step-by-step explanation:
The process for valuing inventory that is preferred by managers for decision making is the cost/benefit analysis.
In a cost/benefit analysis, the decision maker compares the sacrifices (costs) with the gains (benefits) of a decision.
This analysis helps in weighing the marginal costs and benefits, which is comparing the extra cost of adding an additional unit with the extra benefit of adding the same unit.
A structured decision process is often used to evaluate different concepts and select the concept that best meets the criteria and constraints, which is typically employed in decision making for designing products.