Managerial Accounting Braun 3rd Edition Test Bank

Three primary roles of managers:

The three primary roles of managers are described below:

• Planning – It is a process of decision-making in advance that involves identification of objectives and goals and determination of strategies to achieve them.

• Directing – It is a process of monitoring the organization’s daily operational activities and motivating the subordinates towards the accomplishment of goals.

• Controlling – It is a process of comparing the actual results with the planned or standard figures and taking corrective measures to reduce any significant difference that may occur between the two.

The way the above three primary roles are related to one another are explained below:

• Managers set goals and objectives for the organization, and then formulate appropriate strategies to meet them.

• Then, they supervise the daily operational activities of the organization to check whether the activities done are headed towards the achievement of the set goals.

• Finally, the managers evaluate the actual performance of the operational activities and compare the results with the standards and accordingly bridge the gap in order to accomplish the goals in a desired manner.