Help with a business question

Anonymous
timer Asked: Nov 19th, 2015
account_balance_wallet $5

Question Description

Explain why the four steps involved in the controlling function are important. Why is a good understanding of the various ratios used by accountants and managers important to the controlling function? Give specific examples.

Tutor Answer

rgoyal67
School: Rice University

Thank you for the opportunity to help you with your question!

Four steps in controlling functions are important because by doing this we are establishing the standards of the business.We have to set the standards to achieve our goals.Standards are measured in term of the output, in terms of loyalty, customer attractions, quality of goods. And these thing are very important for business progress.

For the progress of the business , the managers and accountants should have good knowledge of various ratios, few are as ...

(1)Net sales to working capital, it should be high as it tells how working capital is utilized.

(2)Net sale to Inventory..greater the turnover of inventory, higher the profit.

(3)Current ratio...this is the ratio of current asset to current liabilities and determine how good the financial position of the company.It should be high.

(4)Net profit to net sale...This should be high , this tells about the profit

So these are few whose good knowledge is a must to run the business efficiently.



Please let me know if you need any clarification. I'm always happy to answer your questions.

flag Report DMCA
Review

Anonymous
Good stuff. Would use again.

Similar Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors