16-1SE_c - Horngren'S Financial And Managerial Accounting

Question

Comparing managerial accounting and financial accounting 

For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA):

c. Helps in planning and controlling operations

Step-by-Step Solution

Answer

Managerial Accounting helps in planning and controlling the business operations.

Definition of planning

Planning is defined as the process of choosing the organizational objective and deciding the steps to achieve it.

Identification of accounting

The planning and controlling operations are the functions of managerial planning. Planning is the choosing the organization’s goal and deciding how to achieve it and controlling is checking whether the plans are implemented accordingly