17/1/2010..
3. What are the four steps in the major planning and control cycle?
• Comparing actual to planned performance (Controlling)
• Formulating long-and short-term plans (Planning)
• Implementing plans (Directing and Motivating)
• Measuring performance (Control
3. What are the major differences between financial and managerial
accounting?
Financial Accounting
Managerial Accounting
Line position are directly related to Staff position support and assist line
achievement of the basic objective positions
of an organization
• example: production • example:cost accountants in
supervisors in a the manufacturing plant
manufacturing plant
The Chief Financial Officer is the memberof the top management team
who is responsible for providing timely and relevant data support planning
and control activities and for preparing financial statement for external
users.An effective CFO is considered a key member of the top
management team whose advice is sought in all major decisions. The CFO
is a highly paid professional who has command over the technical details
of accounting an finance,who can provide leadership to other professional
in his or her department, who can analyze new and evolving
situations,who can communicate technical data to others in a simple and
clear manner, and who is able to work well with top managers from other
disciplines.
Exhibits 1-6: