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. Respond substantively to two other learners.
Thank you for the opportunity to help you with your question!
Each of the four stages has its own particular criticalness in control capacity.
Step 1: To set up and survey measures that should be set in the arranging procedure. This part is imperative as the procedure of controlling is brought out from here through three stages; organization ride, departmental or useful range, and is it required for each person to perform these progressions to guarantee a smooth running of a fruitful business.
Step 2: Measuring of the execution of the representatives at the vital, strategic, and operational levels. This stride is the main component in controlling the execution of people and is imperative.
Step 3: In this stride, the execution results of the workers is contrasted and the principles that are pre-set. Here, the execution information is gathered and contrasted with secure the people of their singular's execution amid a timeframe.
Step 4: That's the last stride in controlling, when a choice is made to remunerate fruitful exhibitions and right unsuccessful exhibitions. This stride is significant as choice is individual based and must be precisely done.
In this manner, the bookkeepers and administrators need a decent comprehension of the different proportion and criteria that are utilized to control capacities as, they comprehend the systems, tenets and regulations that the organization takes after and what is required to be did.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 19th, 2015
Are you studying on the go? Check out our FREE app and post questions on the fly!