LESSON 12 Flashcards
It is a major management function that contributes to the achievement of organizational goals by checking errors and addressing deviations from established performance standards
Controlling
It is an ongoing process that involves members at all levels of the organization
Controlling
These are both closely related management functions
Planning and controlling
This type of control anticipates the occurrence of possible problems so that preventive measures can be implemented before the actual operation
Feedforward control
This type of control is implemented while the activity is in progress
Concurrent control
This type of control is done after the activity
Feedback control
This technique entails establishing procedures and policies that ensure efficiency in the activities of the company
Administrative control
This involves assigning an employee to take responsibility in completing a task
Delegation
This type of control involves the collection and analysis of information in order to make decisions
Evaluation
These are information on hoe money is spent and how profits are maximized by the company
Financial reports
Messures the company’s ability to meet its current debt obligations
Liquidity ratio
Access the organization’s used of debt to finance its assets to and meet the interest payments on debts
Leverage ratio
Measures the efficiency of the company in using its assets to met its various financial obligations and convert its various accounts to cash
Activity ratio
Measures the efficiency of the company in generating profits
Profitability ratio
This provides a general impression of employee performance
Performance appraisal
Approach that evaluates employees based on certain traits like honesty, flexibility, creativity, and punctuality
Trait approach
This approach compares the performance of employees set by the company
Achievement-based approach
This approach involves employees being evaluated by a group of people
Group approach
These form part of the internal control of an organization as they guide behavior in the workplace
Policies and procedures
This control method relies on the quality of products and services as a basis for establishing performance standards, monitoring results, and comparing results with the standards
Quality control
ISO
International Organization Standardization
These are important tools that determine whether the company is on track toward achieving its financial goals
Accounting/Financial Controls
It provides a summary of the company’s financial position over a period of time
Balance sheet
Things or resources that the company owns
Assets
Refer to the sales of goods or services that are not yet collected, or sales still kn credit
Accounts receivable
Includes the cost of raw materials, work-in-process, and finished goods
Inventory
Assets that include cash on hand, cash deposited in banks, prepaid or advance payments not yet used, accounts receivable and inventory
Current assets
The value of the shares issued by a company
Equity
Assets considered as debt, unsettled transactions or other monetary obligations owed to a company by its debtors of customers
Receivable
These include assets such as land, buildings, leasehold improvements, equipment, furniture, and fixtures, delivery trucks, machinery, and other capital owned by the company
Property, plant, and equipment
Refers to assets that do not have physical substance and may be hard to evaluate
Intangible assets
These are the obligations of the company to creditors for past transactions such as acquisition of raw materials and other debts
Liabilities
These liabilities are usually due within one year
Current liabilities
These Lieblings have a prescribed period of more than a year
Long-term liabilities
It is the amount of loans due based on a written agreement or promise to pay
Notes payable
It refers to the obligations of the company to supplies without a written promissory note and are classified as current liability
Accounts payable
This is a current liability that is specific to the Philippines
SSS/Philhealyh payable
It shows the amount the company should remit as taxes to the environment
Income taxes payable
The amount due to the amount due to the employees but are not yet given as of the date of balance sheet
Salaries payable
The amount of interest the company owes from proceeds of a loan that is due as of the date of the balance sheet
Interest payable
It shows the amount of capital the owners of the business have invested
Owner’s equity or stockholder’s equity
This represents ownership of the corporation
Common stock
This is a special class of stock whose holders are given preference in the distribution of dividends before the common stockholders
Preferred stock
This is the net income of the corporation less dividends
Retained earnings
Standard formula for determining the financial status of a company
Assets = Liabilities + Owner’s Equity
This reports profits earned or lesses incurred by the company over a given period
Income statement
This is the income from primary activities such as the production and selling of goods on the part of the manufacturer
Revenue
Refers to revenue gained from the sale of goods by retailers, distributors, manufacturers, and wholesalers
Sales revenue
Comes from secondary activities unrelated to the main business like rent from an idle warehouse or garage
Other revenue
These are costs incurred in the operation of the business such as salaries and wages of employees;
Expenses
The income statement lists the revenue and expenses incurred by the company, and the total expenses is subtracted from the total revenues
Net income
Indicates that expenses are less than the income or total revenue at a given period
Profit
This happens when the expenses are greater that the revenue
Lose
Formula for net income
Net income = Revenues - Expenses
This refers to the processes implemented to control the formulation and execution of strategic plans
Strategic control
This market tool evaluates the extent and quality of customer relations, how the marketing function is integrated with other functions of the organization, and how well marketing activities and functions are coordinated
Marketing effectiveness
