Q1TI_2 - Horngren'S Financial And Managerial Accounting

Question

Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): 

2. Helps in planning and controlling operations.

Step-by-Step Solution

Answer

Planning means choosing the goal and setting up the steps and the correct answer is managerial accounting.

Step 1: Definition of Planning

Planning is defined as the process of determining the steps which are required to meet or achieve the organizational goals.

Step 2: Identification of Accounting type

The correct option is managerial accounting

The planning and controlling are the functions of managerial accounting. Business managers need various types of information that will help them to plan, and control the operations of the business.