Question

What three vital activities does managerial accounting help managers perform?

a) Planning, organizing, controlling
b) Budgeting, decision making, performance evaluation
c) Leading, coordinating, evaluating
d) Marketing, production, distribution

Answer 1

Managerial accounting helps managers perform three critical activities: planning, controlling, and decision making by providing essential financial and non-financial information.

Step-by-step explanation:

Managerial accounting is a crucial component in the management field, geared towards providing managers with the necessary data to carry out three vital activities: planning, controlling, and decision making. Each of these activities plays a significant role:

• Planning: This involves setting goals and outlining strategies to achieve them, such as budgeting and forecasting.
• Controlling: Managers need to monitor and compare actual performance against plans to ensure that objectives are being met, which includes performance evaluation and variance analysis.
• Decision Making: Managerial accounting provides the financial and non-financial information required to make informed business decisions, such as costing of products and profitability analysis.

The integration of managerial accounting within these activities helps managers to efficiently guide their organizations towards their set goals and objectives.