Q4RQ - Horngren'S Financial And Managerial Accounting

Question

Explain the differences between planning, directing, and controlling.

Step-by-Step Solution

Answer

The planning setting up of a goal, directing is working towards the goal, and controlling is checking whether the work is done as per the planning.

Step 1: Managerial Accounting Function

Business managers need the information to plan, direct and control the operations of the business led by them. 

Step 2: Difference between planning, directing, and controlling

Planning is defined as the process of choosing goals and deciding how to achieve them

Directing usually involves running the day-to-day operations of the business.

Controlling is the process of monitoring the day-to-day operations and keeping the company in check.