Lot quality assurance sampling (LQAS) is a sampling method that assesses small areas to determine if key goals of public health programs have been met. LQAS was used to monitor a new micronutrient powder (MNP) distribution program in Country X. LQAS decision rules (DR) were used to classify districts as having adequate or inadequate coverage with respect to three criteria: goal coverage, the lower limit of acceptable coverage, and the coverage level above which further intervention was not cost‐effective. There is controversy in recent literature between two approaches to DR selection: the first balances coverage goals with program expense, while the second prioritizes detection of low‐coverage districts. This study compared results from both approaches to DR selection. In each of 48 districts, 24 households were randomly selected. Goal district coverage for MNP use was 70%. Using the first approach, a DR of 16 households (66.7% of each district sample) defined adequate coverage. Using the second approach, a DR of 20 (83.3%) was used. DRs were selected using FANTA‐II software. Using the first DR, coverage was inadequate in 14.6% of districts, compared to 47.9% using the second DR. Choice of DR substantially altered the number of districts in need of more resources to improve coverage. The first approach allows this new program with limited resources to focus on the worst‐performing districts. The second approach ensures that passing districts have met the coverage goal and is useful once a minimal effective level of coverage is determined. The key to DR selection is examination of the current needs of each program.