Accounting final Vocab Help

Accounting final Vocab Help - Management Accounting Control...

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Management Accounting Control : Chapter 7 page 312 In the context of a management accounting and control system, control refers to the set of procedures, tools, performance measures, and systems that organizations use to guide and motivate all employees to achieve organizational objectives. When addressing the relevance of a management accounting and control system, 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 decisions at hand. Planning pg 314 The text indicates five steps that are needed to keep the organization in control: Planning: developing the organization’s primary and secondary objectives, identifying the activities to accomplish the objectives, and selecting measures to determine how well the objectives were met; Executing: implementing the plan; Monitoring: measuring the system’s current level of performance; Evaluating: comparing the system’s current level of performance to the planned level to identify differences so that corrective actions can be prescribed; and Correcting: taking actions needed to return the system to an in-control state. Total Life cycle cost Chapter 7 Page 317
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Accounting final Vocab Help - Management Accounting Control...

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