Which of the following descriptions best matches the PLANNING responsibility of managementGroup of answer choicesManagement are meeting with the internal auditors to discuss the internal controlsManagement are meeting with the board to decide on the objectives for the yearManagement are reviewing the receivables turnover and days in receivables ratios
Question
Which of the following descriptions best matches the PLANNING responsibility of managementGroup of answer choicesManagement are meeting with the internal auditors to discuss the internal controlsManagement are meeting with the board to decide on the objectives for the yearManagement are reviewing the receivables turnover and days in receivables ratios
Solution
The description that best matches the PLANNING responsibility of management is: "Management are meeting with the board to decide on the objectives for the year".
Planning is a key function of management that involves setting objectives and determining a course of action for achieving those objectives. In this case, meeting with the board to decide on the objectives for the year is a clear example of planning.
On the other hand, meeting with the internal auditors to discuss the internal controls is more related to the controlling function of management, which involves ensuring that the plans are being followed.
Reviewing the receivables turnover and days in receivables ratios is more related to the analysis or evaluation function of management, which involves assessing the performance of the organization.
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