Managerial Accounting Is Designed to Assist Managers with Four General

question 14

Essay

Managerial accounting is designed to assist managers with four general activities: planning, controlling, evaluating and decision making.Give two examples of each type of activity for a furniture manufacturer.

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Definitions:

Capital Stock

The total amount of physical, financial, and human assets used in the production of goods and services in an economy.

Proprietorships

Businesses owned and operated by a single individual, bearing full responsibility for its assets and liabilities.

Partnerships

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Net Investment

The total amount spent by a company or economy on capital assets, minus depreciation, reflecting the increase in value of the entity's productive capacity.