The management accountant at Woodhaven Cycle Shoppe developed a budget to establish the sales goals at the store in 2012. In 2013, the management accountant evaluated the performance in the organization, reviewed the performance of the sales staff, and compared the sales results to the actual budget that the managerial accountant developed in 2012. Which of the following management accounting responsibilities is the management accountant using in this example?

A) Planning

B) Directing

C) Controlling

D) Designing

E) Implementing

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Business

17 August, 01:37

The management accountant at Woodhaven Cycle Shoppe developed a budget to establish the sales goals at the store in 2012. In 2013, the management accountant evaluated the performance in the organization, reviewed the performance of the sales staff, and compared the sales results to the actual budget that the managerial accountant developed in 2012. Which of the following management accounting responsibilities is the management accountant using in this example?

A) Planning

B) Directing

C) Controlling

D) Designing

E) Implementing

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Answers (1)

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Melina Chapman · Answer 1

Option (C) Controlling

Explanation:

The budget set is part of planning but variance analysis conducted time to time is reflection of emphasizing control over the operations of the company. The manager tries to better allocate the resources of the firm to increase the efficiency and economical flow of operations.