Summarize the Basic Steps in Any Planning Process

question 75

Short Answer

Summarize the basic steps in any planning process.

Understand the procedures for recording transactions in special and general journals.

Recognize the order and system of processing sales, collections, and adjustments in accounting systems.

Distinguish between manual and computerized accounting systems.

Comprehend the role of subsidiary ledgers and control accounts.

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Definitions:

Opportunity Cost

The value of the best alternative that must be forgone as a result of choosing a particular action or decision.

Law of Comparative Advantage

An economic principle stating that countries or individuals gain when they produce goods and services for which they have lower opportunity costs relative to others.

Low Opportunity Cost

A situation where the cost of forgoing the next best alternative is relatively minimal.

Productive Activity

An action or process that leads to the creation of goods or services which have value and contribute to the economy.