Final answer:
The correct answer is option D) Creating detailed budgets.
Step-by-step explanation:
The planning function of managerial accounting involves creating detailed budgets. These budgets outline the expected costs and revenues for a future period, allowing businesses to make informed decisions and plan their operations accordingly. Budgets can be used to allocate resources, set targets, and guide the overall strategic direction of the business.
For example, a business might create a sales budget to plan for the expected sales revenue and the corresponding expenses, such as production costs and marketing expenses. By comparing actual performance to the budgeted amounts, the business can identify any deviations and take corrective actions to stay on track with their financial goals.
Evaluating results of operations and implementing operational plans are important aspects of managerial accounting, but they are not directly part of the planning function.