Professional Documents
Culture Documents
‘MANAGERIAL ACCOUNTING’
1. Division of work- Management operates in the work environment where employees are
divided according to their special skills.
2. Authority and Responsibility- is the right of the superior to give orders to subordinates.
Responsibility is obligation of subordinates to follow specific orders.
3. Discipline- It is the essence of effective organization. In compliance to specific rules of
conduct in relation with superiors and other members of the team.
4. Unity command- This principle states the subordinates should receive orders and
instructions from only one superior to whom he is responsible and accountable.
5. Unity of Direction- Organization objectives and goals must be understood by all concerned.
6. Degree and Centralization and Decentralization- centralization refers to the concentration
of decision making process exercise by top management when the decision making is
delegated to the lower level there is some degree of decentralization.
7. The chain of authority- This principle suggests that there should be clear delegation of
authority that cascade down the line in the organizational ladder.
8. Organizational Versus Personal Interest- people on management must put aside their
personal ambition when it will run counter to the welfare of decentralization.
9. The principle of just compensation- The chief motivation of people in the company is just
wages and compensation. Proper salary influence better performance and productivity.
10. The Principle of equity and Performance- social order ensures the fluid operation of the
company. Employees must be treated kindly as they are human beings with feelings.
11. Stability of Tenure- Security of tenure must be guaranteed. Employees must not be
removed from employment unless they violate company policies and regulations.
12. Esprit D corps- this refers to the development of morale and initiative of individuals. Team
sprit helps the development of mutual trust and confidence which are very essential in the
effective working of people.
1. T
2. O
3. T
4. O
5. O
6. O
7. T
8. O
9. O
10. T
II. Enumeration.
A. Give at least 5 important function of the Top Management.
1. Planning: When you think of planning in a management role, think about it as the process of
choosing appropriate goals and actions to pursue and then determining what strategies to
use, what actions to take, and deciding what resources are needed to achieve the goals.
2. Organizing: This process of establishing worker relationships allows workers to work
together to achieve their organizational goals.
3. Leading: This function involves articulating a vision, energizing employees, inspiring and
motivating people using vision, influence, persuasion, and effective communication skills.
4. Staffing: Recruiting and selecting employees for positions within the company (within teams
and departments).
5. Controlling: Evaluate how well you are achieving your goals, improving performance, taking
actions. Put processes in place to help you establish standards, so you can measure,
compare, and make decisions.
III. Write the letter of the correct answer on the space before the number that best describes the
statement.
1. B
2. C
3. D
4. D
5. B
6. D
7. A
8. C
9. D
10. B