Apply the concept

and nature of different

control methods and
techniques in
accounting marketing
• 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
• 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?
• 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?
 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.
 Why we need to Control?

• To ensure that activities are

completed in ways that lead to
accomplishment of
organizational goals.
 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.
TO BE CONTINUE
 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
 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.
 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.
refers
B. Ratio Analysis

to analysis of financial statements through computation of ratios.

 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
 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.
 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