Managerial accounting includes the planning function.Which of the following items would be part of the planning function of a business's managerial accounting?
A) comparing actual performance to previously budgeted amounts
B) creating detailed budgets
C) implementing operational plans
D) evaluating results of operations

Question

Quizplus · Accepted Answer

The creation of detailed budgets is a key element in the planning function of managerial accounting. This involves setting specific targets for revenues, expenses, and other important financial metrics, which can then be used to guide decision making and evaluate performance. While comparing actual performance to budgeted amounts, implementing operational plans, and evaluating results of operations are all important aspects of managerial accounting, they are typically associated with other functions such as controlling, directing, and monitoring.

Managerial Accounting Includes the Planning Function