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Multiple Choice
The process by which managers establish goals and specify how these goals are to be attained is called:
A
Controlling
B
Organizing
C
Planning
D
Directing
Verified step by step guidance
1
Understand the concept of 'Planning' in Financial Accounting: Planning is the process where managers establish goals and determine the strategies and actions required to achieve those goals. It involves forecasting, setting objectives, and deciding on the resources needed.
Differentiate 'Planning' from other managerial functions: Controlling involves monitoring and evaluating performance, Organizing refers to arranging resources and tasks, and Directing focuses on guiding and motivating employees. Planning is distinct as it sets the foundation for all other functions.
Recognize the importance of Planning: It ensures that the organization has a clear direction and helps in allocating resources efficiently to achieve the desired outcomes.
Relate Planning to financial accounting: In financial accounting, planning is crucial for budgeting, forecasting financial performance, and preparing financial statements that align with organizational goals.
Apply the concept: When faced with a question about managerial functions, identify the key terms and match them to their definitions. In this case, 'establishing goals and specifying how to attain them' clearly aligns with the definition of Planning.