1. University of 6th of October, Egypt
Prepared by
Dr.Hassan Sweillam
University of 6th of October, Egypt

2. Planning and Control Cycle6
Planning and Control Cycle
Learning Objectives
After studying this chapter, you should be able to:
[1] Identify the basic concepts of Planning and Control Cycle.
[2] Identify the purpose of financial and managerial accounting.
[3] Explain Business Functions and the Value Chain .

3. Planning and Control Cycle
Formulating long- and short- term
plans (Planning)
Implementing plans( Directing and Motivating)
Comparing actual to planned performance (Controlling)
Decision Making
Measuring performance
(Controlling) 3

4. Comparison between FA and MA

5. Business Functions and the Value Chain Research and Development
Definition
A value chain consists of the major business functions that add value to a company’s products and services
Research and Development
Product Design
Manufacturing
Marketing
Distribution
Customer
Service

6. 1- Research and Development
2- Product Design
3- Manufacturing
4- Marketing
5- Distribution
6- Customer Service

7. Value Chain Functions and example costs
1- Research and Development example costs:
Salaries of marketing research Personnel
Costs of Market survey
Salaries of R & D researchers and engineers

8. Value Chain Functions and example costs
2- Product design example costs:
Costs of computer aided design equipment used to develop prototype of product for testing
Salaries of product and process engineers

9. Value Chain Functions and example costs
3- Manufacturing example costs:
Costs of Labor wages
Salaries of supervisory
Maintenance costs
Energy costs
Depreciation costs of plant and machinery

10. Value Chain Functions and example costs
4- Marketing example costs:
Costs of advertisements
Salaries of Marketing personnel
Marketing campaign costs
Travel costs

11. Value Chain Functions and example costs
5- Distribution example costs:
Salaries of shipping personnel
Transportation and shipment costs

12. Value Chain Functions and example costs
6- Customer services example costs:
Salaries of service personnel
Costs of supplies and spare parts
Maintenance costs

13. Review Questions True or False Questions
1- Financial accounting reports to those inside the organization.
Answer: False
2- Managerial accounting needs to follow (GAAP )General accepted accounting principles .
3- A value chain consists of the major business functions.
Answer: True

14. Review Questions 12. Quiz Multiple Choice Questions
1-__________________, is Mandatory for external reports .
Managerial accounting.
Cost accounting.
Financial accounting.
All of these.
Answer: ____

15. Review Questions 12. Quiz Multiple Choice Questions
2- _____________, consists of the major business functions that add value to a company’s products and services assets exceed liabilities.
Distribution.
Manufacturing.
Marketing.
Value chain.
Answer: ____

16. Review Questions Multiple Choice Questions
3- Value chain consists of ________ major business functions that add value to a company’s products and services.
Two.
Three.
Five.
Six.
LO 8 Understand the four financial statements and how they are prepared.

17. 12. Quiz Review Questions Brief explain Questions
1- Briefly state three differences between financial and managerial accounting ?
2- Briefly explain the Value Chain Functions with two examples of costs ?
Brief explain Questions