Dictionary of Accounting Terms: decision rule
decision rule
designation of a specific condition or combination of conditions that may arise in the decision-making process and the appropriate action to take if the conditions exist. For example, in a capital budgetingdecision, under the net present value method, a project should be accepted if its NPV is positive. Also, under the Internal Rate of Return (IRR)a project should be accepted if the IRR of the project exceeds the cost of capital.
