11 Questions
Which step of the decision-making process involves comparing actual outcomes to what was planned?
Evaluate performance by comparing planned to actual outcomes
What is the main purpose of formulating long and short-term plans in the cycle of planning and controlling?
Decision-making
In the decision-making process, what is the step that involves laying down different alternative courses of actions?
Anticipate possible outcomes in the future
Which activity falls under the 'Directing and Motivating' phase in the cycle of planning and controlling?
Implementing plans
What is the primary focus of 'Controlling' in the cycle of planning and controlling?
Measuring performance
What is the primary focus of managerial accounting?
Analyzing internal performance metrics
Which phase of the decision-making process involves anticipating possible future outcomes?
Planning
What is the primary purpose of financial accounting?
Ensure compliance with GAAP
In the decision-making process, what comes after identifying problems and obtaining necessary information?
Laying down alternative courses of action
Which branch of accounting primarily focuses on preparing financial statements for external use?
Financial Accounting
What does the 'comparison of actual vs. budgeted costs' help in determining?
Budget variances
Study Notes
The Cycle of Planning and Controlling
- The cycle consists of planning, controlling, directing, and motivating
- Planning involves formulating long and short-term plans
- Controlling involves comparing actual to planned performance and measuring performance
- Directing and motivating involves implementing plans
The Decision Making Process
- Identify problems or issues
- Obtain necessary information to solve problems
- Anticipate possible outcomes in the future
- Lay down alternative courses of actions and choose the best
- Implement the decision
- Evaluate performance by comparing planned to actual outcomes
Accounting Branches
Financial Accounting
- Concerned with recording business transactions and preparing financial statements
- Intended for external use
- Adheres to Generally Accepted Accounting Principles (GAAP)
Note
- No additional information on Managerial and Cost Accounting is provided in the given text
Explore the decision-making process in managerial accounting based on the cycle of planning and controlling. Learn about steps like identifying problems, obtaining necessary information, and evaluating alternatives.
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