Chapter 1 additional Flashcards
Which of the following involves coordinating a company's activities to produce a smooth running operation? A. auditing B. controlling C. Planning D. Directing
B controlling
What are the 3 broad managerial functions
- Planning, 2. Directing and motivating, 3. controlling
Exercising good judgement in performing the managerial functions and choosing among alternative courses of action is called
decision making
Primary users of Financial accounting
external
Primary users of Managerial accounting
Internal users
Type of reports of Financial accounting
Financial Statements
Type of reports for Managerial accounting
internal reports
Frequency of reports for financial accounting
annually, quarterly, monthly
Frequency of reports for managerial accounting
as frequently as needed
purpose of reports for financial accounting
general purpose
purpose of reports for managerial accounting
specific purpose
Contents of reports finaical accounting
GAAP, limited double entry and cost data
Contents of reports for managerial accounting
relevance to decisions
Verification of financial accounting
annual audit by CA
Verification of managerial accounting
no independent audits
requires management to look ahead and to establish objectives. a key objective of management is to add value to the business
planning
involves coordinating the company’s diverse activities and human resources to produce a smooth running operation. this function relates to the implementation of planned objectives
directing and motivating
the process of keeping the activities on track. Management must determine whether goals are being met and what changes are necessary when there are deviations.
controlling
