Chapter 9: Behavioral and Organizational Issues in Management Accounting and Control Systems
Chapter 9
|Behavioral and Organizational Issues in Management Accounting and |[pic] |
|Control Systems | |
QUESTIONS
9-1 In the context of a management accounting and control system, control refers to the set of procedures, tools, performance measures, systems and incentives that organizations use to guide and motivate all employees to achieve organizational objectives.
9-2 The four stages that are needed to keep the organization in control are:
1. Plan: develop an organization’s objectives, choose activities to accomplish the objectives, and select measures to determine how well the objectives were met;
2. Do: implement the plan;
3. Check: monitor by measuring and evaluating the system’s current level of performance; compare feedback about the system’s current level of performance to the planned level in order to identify discrepancies and prescribe corrective action;
4. Act: take appropriate actions to return the system to an in-control state.
9-3 The two broad technical considerations that designers of management accounting and control systems must address are the relevance of the information generated and the scope of the system.
9-4 When addressing the relevance of a MACS, designers should develop a system that provides information that is timely and accurate enough to be relevant and useful for decision making. The system should provide a consistent framework for the organization, in the sense that the language used and the methods of producing management accounting information do not conflict within various parts of the organization. Finally, employees should be able to use the system’s available information in a flexible manner so that it can be customized for the
|Behavioral and Organizational Issues in Management Accounting and |[pic] |
|Control Systems | |
QUESTIONS
9-1 In the context of a management accounting and control system, control refers to the set of procedures, tools, performance measures, systems and incentives that organizations use to guide and motivate all employees to achieve organizational objectives.
9-2 The four stages that are needed to keep the organization in control are:
1. Plan: develop an organization’s objectives, choose activities to accomplish the objectives, and select measures to determine how well the objectives were met;
2. Do: implement the plan;
3. Check: monitor by measuring and evaluating the system’s current level of performance; compare feedback about the system’s current level of performance to the planned level in order to identify discrepancies and prescribe corrective action;
4. Act: take appropriate actions to return the system to an in-control state.
9-3 The two broad technical considerations that designers of management accounting and control systems must address are the relevance of the information generated and the scope of the system.
9-4 When addressing the relevance of a MACS, designers should develop a system that provides information that is timely and accurate enough to be relevant and useful for decision making. The system should provide a consistent framework for the organization, in the sense that the language used and the methods of producing management accounting information do not conflict within various parts of the organization. Finally, employees should be able to use the system’s available information in a flexible manner so that it can be customized for the