Professional Documents
Culture Documents
The Nature of
Management Control System
(Chapter1)
Elements of MCS
Strategic planning
Budgeting
Resources allocation
Performance measurement
Evaluation and reward
Responsibility center allocation
Transfer pricing
2. Assessor:
comparison
3. Effector:
alteration
Entity
Being
crontrolled
Planning;
Evaluating;
Coordinating;
Deciding; and,
Implementation Mechanism
Management
controls
Strategy
Organization
structure
Human
resources
Performance
Culture
8
Relationships among
Planning and Control
Strategy
formulation
Management
control
Task
control
Implementation of strategies
Strategy formulation
Deciding on the goals of the organization and the
strategies for attaining them.
Goals are timeless; they exist until they are changed.
Strategies are big and important plans. They state the
direction to move the organization.
Management
control
is
the
implementating those strategies.
process
of
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Task control
Management control
Involves behavior of
managers.
Focus on organization
units.
Managers interact with
other managers.
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Bibliography
Anthony y Govindarajan. Management Control
System. 12th Edition. McGraw-Hill.
Guan, Hansen and Mowen. Cost Management.
6th Edition. McGraw-Hill.
Ramrez Padilla, David. Contabilidad
Administrativa. 8va. Edicin. McGraw-Hill.
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