Chapter 1 An Introduction to Managerial Accounting and Cost Concepts

Planning involves selecting a course of action and specifying how the action will be implemented. The first step in planning is to identify the various alternatives. Next, the alternative that does the best job of furthering the organization’s objectives is selected. Management’s plans are usually expressed in budgets. Typically, budgets are prepared annually under the direction of the controller, who is the manager of the accounting department.