MANAGEMENT CONTROL

IN ACCOUNTING AND
MARKETING
Controlling is
a must for all
functional
areas of the
business.

2
In particular, accounting and marketing areas use
control methods extensively because these two
areas give essential information about the
business's overall performance. 3
Business owners
and managers use
management
control techniques
to ensure that
customers’ needs
and wants are
satisfied.
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BUSINESS FAILURES

1. Think of a product, brand, or company

that does not exist anymore in the
market.
2. Conduct a quick internet search and
answer the questions that follow.

5
1. WHAT PRODUCT, BRAND, OR
COMPANY DID YOU CHOOSE?

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2. WHAT DO YOU THINK IS THE MAIN
REASON THE COMPANY, BRAND, OR
PRODUCT FAILS IN THE MARKET?

77
3. WHAT COULD THE PRODUCT,
COMPANY, OR BRAND HAVE DONE TO
AVOID THIS BUSINESS FAILURE?

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What are the management control
techniques specifically used in marketing
and accounting?

9
 ACCOUNTING & MARKETING

Accounting Marketing
Helps in providing Provides information about
essential information that customer satisfaction and
can monitor the financial sales performance
performance of the
company

10
 ACCOUNTING AND FINANCIAL CONTROLS

Financial Statements

● A financial statement contains records that show

the business activities and the financial
performance of the organization.
● There are three types of financial statements:
balance sheet, income statement, and cash
flow statement.

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 TYPES OF FINANCIAL STATEMENTS

Balance Sheet

It is a type of financial
statement that gives
financial information about
the company's assets,
liabilities, and shareholders'
equity at a specific point in
time.

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 TYPES OF FINANCIAL STATEMENTS

Balance Sheet

Accounts under balance

sheet:
● Assets
● Liabilities
● Owner’s Equity

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 TYPES OF FINANCIAL STATEMENTS

Assets

These are the things or

resources that your
company owns. A
resource is considered an
asset if it has economic
value and future benefit.

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 TYPES OF FINANCIAL STATEMENTS

Types of Assets

● Current assets are expected to be converted to

cash within a year.

● Non-current assets refer to those considered

long-term assets, where their full value won't be
recognized until at least a year.

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 TYPES OF FINANCIAL STATEMENTS

Types of Assets

● Intangible assets - These

assets are not physical in
nature or do not have
physical substance.

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 TYPES OF FINANCIAL STATEMENTS

Liabilities

● These represent the

financial obligation of
the business to
creditors for past
transactions.

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 TYPES OF FINANCIAL STATEMENTS

Types of Liabilities

● Current liabilities are usually due within one

year.

● Non-current liabilities have a prescribed

period of more than one year.

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 TYPES OF FINANCIAL STATEMENTS

Owner’s Equity

It shows the amount of

financial resources or money
the owners have invested in
the business.

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 TYPES OF FINANCIAL STATEMENTS

Accounts under Owner’s Equity

Capital accounts refer to

any investment made by the
owner(s) of the company to
the business. It may be in
monetary or non-monetary
forms for the use of the
business in its course of
operations. 20
 TYPES OF FINANCIAL STATEMENTS

Accounts under Owner’s Equity

● Withdrawals happen when the owners of the
company transfer monetary values to
themselves for personal use.

● Revenue - All monetary values generated by

the company in exchange of services rendered
or products sold or in the course of business
operations.
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TYPES OF FINANCIAL STATEMENTS

Cash Flow Statement

It shows the amount of
cash entering and
leaving the company.

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TYPES OF FINANCIAL STATEMENTS

Income Statement

It presents the profit earned

or losses incurred by the
business in a specific period
of time.

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 TYPES OF FINANCIAL STATEMENTS

Main Parts of an Income Statement

1. Revenue refers to the money or income

received and earned by the business from
normal business operations.

2. Expenses refers to the costs or amount of

money used in the operation of the business.

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 TYPES OF FINANCIAL STATEMENTS

Main Parts of an Income Statement

3. Net income is the

amount of money
your company has
earned in a period of
time, after deducting
all of the expenses
(profit or loss).
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 TYPES OF FINANCIAL STATEMENTS

Components of a Cash Flow Statement

● Operating activities refer to the cash inflow and
cash outflow arising from the normal business
operations.
● Investing activities are focused on the purchase
and sale of property, equipment, long-term
investments, etc.

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 TYPES OF FINANCIAL STATEMENTS

Components of a Cash Flow Statement

Financing activities refer to

the cash inflow and cash
outflow from the business and
creditors of the business.

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 ACCOUNTING AND FINANCIAL CONTROLS

Financial Audit
● It refers to the objective assessment and
evaluation of the company's financial statements,
processes, and reporting.

● Its purpose is to assure that financial statements,

processes, reporting, and financial data gathering
of the company are accurate and justified.

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 ACCOUNTING AND FINANCIAL CONTROLS

Types of Financial Audit

● Internal audit - This is done by the internal

auditors employed by the business

● External audit - Outside parties perform this

type of audit. External audits aim to reduce bias
in reviewing the financial status of the
company.
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Why do we need to perform financial
audits?

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 MARKETING CONTROL

Strategic Control

● It refers to the assessment of the implementation

and execution of your strategic plan.

● This also involves a detailed and objective analysis

of a company's marketing effort and its ability to
utilize and maximize its strengths and market
opportunities.

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 MARKETING CONTROL

Two Methods under Strategic Control

1. Marketing
effectiveness is
measured by how well a
company’s marketing
strategies increase its
profit while decreasing
customer acquisition
costs. 32
 MARKETING CONTROL

Two Methods under Strategic Control

2. Marketing audit aims to

provide a detailed,
systematic, and holistic
analysis, and periodic
evaluation of the
marketing activities of an
organization.

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MARKETING CONTROL

Annual Plan Control

It is the process of
monitoring current
marketing efforts and
results to ensure that the
annual sales target and the
profit goals are achieved.

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 MARKETING CONTROL

Three Methods under Annual Plan Control

1. Sales analysis
involves analyzing the
sales performance by
evaluating your sales
team's performance
against its established
goals.
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 MARKETING CONTROL

Three Methods under Annual Plan Control

2. Market share analysis indicates how well a firm is

doing in the marketplace than its competitors.

3. Marketing expenses-to-sales ratio indicates

how much a company spends to achieve its sales
goals.

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 MARKETING CONTROL

Sources of Information Regarding Customer

Satisfaction
● Customer surveys
and ratings
● Personal
observation
● Data in returns and
complaints
● Sales force reports
● Customer reviews 37
 MARKETING CONTROL

Profitability Control

● It aims to know if your business is making or losing

money.

● It identifies which products and customer groups

provide a significant contribution to your sales
performance.

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 MARKETING CONTROL

Efficiency Control

This type of control checks

the efficiency of marketing
activities, such as sales
force, advertising, sales
promotion, and product
distribution.

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Why is marketing control important?

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TRUE OR FALSE. WRITE TRUE IF THE
STATEMENT IS CORRECT. OTHERWISE, WRITE
FALSE.
1. THE ACCOUNTING DEPARTMENT HELPS IN
PROVIDING ESSENTIAL INFORMATION THAT
CAN MONITOR THE PRODUCTION
PERFORMANCE OF THE COMPANY.

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TRUE OR FALSE. WRITE TRUE IF THE
STATEMENT IS CORRECT. OTHERWISE, WRITE
FALSE.
2. ASSETS ARE THE RESOURCES OWNED
BY THE COMPANY WHICH HAS AN
EXPECTED ECONOMIC VALUE AND
FUTURE BENEFIT.

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TRUE OR FALSE. WRITE TRUE IF THE
STATEMENT IS CORRECT. OTHERWISE, WRITE
FALSE.
3. INTERNAL AUDIT IS DONE BY AN
INDIVIDUAL EMPLOYEE BY THE
BUSINESS.

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TRUE OR FALSE. WRITE TRUE IF THE
STATEMENT IS CORRECT. OTHERWISE, WRITE
FALSE.
4. ANNUAL PLAN CONTROL AIMS TO
MONITOR CURRENT MARKETING
EFFORTS AND RESULTS TO ENSURE
THAT THE ANNUAL SALES TARGET AND
PROFIT GOALS ARE ACHIEVED.

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TRUE OR FALSE. WRITE TRUE IF THE
STATEMENT IS CORRECT. OTHERWISE, WRITE
FALSE.
5. EFFICIENCY CONTROL AIMS TO KNOW
WHICH PRODUCT OR CUSTOMER
GROUPS PROVIDE A SIGNIFICANT
CONTRIBUTION TO SALES
PERFORMANCE.

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● Control methods and techniques are
being applied in the different areas of a
business enterprise.

● Accounting and marketing areas use control

methods extensively because these two
areas give essential information about
the business's overall performance.

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● Control methods applied in accounting and
marketing are as follows:

Accounting Control Types

Methods

Financial statements Balance Sheets

Income Statement
Cash Flow Statement

Financial audits Internal audit

External audit

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● Here are the control methods and techniques
used in marketing:
Marketing Control Types
Methods

Strategic control Marketing effectiveness

Marketing audit

Annual plan control Sales analysis

Market share analysis
Marketing expenses-to-sales ratio

Customer satisfaction Customer surveys and ratings

Personal observation
Data in returns and complaints
Sales force reports
Customer reviews
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Marketing Control Methods Types

Profitability control Checking the profitability of

the company by product
type, customer segment,
territory or location, trade
channels, and order size

Efficiency control Assessing the efficiency of

the following marketing

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