Why can't we choose a point below or above the current Production possibility curve?
A point above will be out of our capability of our resources which we can afford. A point below on the other hand, will show inefficient use of resources.
Why do we value the inventory of finished goods at lower of cost or market price.
This is because we apply Prudence Principle, which says that we need to be careful about our future losses.
How do you find controlling as the last step of management?
Controlling is to correct deviations that are discovered while comparing the standard and actual performance. As this correction can take place only when we finished all the rest of the functions of management, we call controlling as the last step of management.