2. •After going through this module, you are expected
to:
•1. Define controlling;
•2. Discuss the control process;
• 3. Distinguish control methods and technique
•4. Apply different control methods and techniques
in accounting and marketing
3. •As you go through with this lesson, think of
this question:
•What is control?
•Why do you need to control?
•What are the different controlling methods
and techniques?
•How this methods and techniques will help
you to achieve your goals?
4. •As you go through with this lesson, think of
this question: What is control?
•Why do you need to control?What are the
different controlling methods and
techniques?
•How this methods and techniques will help
you to achieve your goals?
5. Controlling Defined
•Controlling is a management function
involves ensuring the work performance of
the organizations members are aligned with
the organizations values and standards
through monitoring, comparing, and
correcting their actions.
6. Why we need to Control?
•To ensure that activities are
completed in ways that lead to
accomplishment of organizational
goals.
7.
8.
9.
10. Types of Control
• a. Feedforward control -a. Feedforward control b. Concurrent control c.
Feedback control
• b. Concurrent control-A control that takes place while the monitored
activity is in progress
• c. Feedback control-A control that takes place after an activity is done.
13. Financial Control
• Financial control is the control of financial resources as they flow into the
organization, are held by the organization and flow out of the organization.
• a. Budgetary Control
• b. Ratio Analysis
14. A. Budgetary Control
• is a technique of managerial control in which all operations are planned in
advance in the form of budgets and actual results are compared with
budgetary standards.Types of budget include cash flow or cash budget,
capital expenditure budget, sales budget, expenses budget, profit budget
and production budget.
15. Purpose of Budget
• 1. Helps managers coordinate resources and activity.
• 2. Helps define the established standards for control
• 3. Provide guidelines about the organization’s resources and expectations.
• 4. Enable the organization to evaluate the performance of managers and
organizational units.
16. B. Ratio Analysis
• refers to analysis of financial statements through computation of ratios.
17. Objectives of Ratio Analysis
• 1. Standardized financial information for comparison
• 2. Evaluate current operations
• 3. Compare current performance with past performance
• 4. Study the efficiency of operations.
• 5. Study the risk of operations
18. Financial Statements
• represent a formal record of the financial activities of an entity.These are
written reports that quantify the financial strength, performance and
liquidity of a company.
19. Two statements for ratio analysis
• 1. Statement of Financial Position also known as the Balance Sheet presents
the financial position of an entity at a given date. It is comprised of the
following three elements: asset- something a business owns,
liabilitiessomething a business owes to someone, and owner’s equity or
capital.
• 2. Income Statement, also known as the Profit and Loss Statement, reports
the company's financial performance in terms of net profit or loss over a
specified period. Income Statement is composed of income and expenses