Slide
Slide 1.1
Bus424
Management Control System
Slide 1.2
Instructor
x
Yasheng Chen
PhD in Management Accounting and Control from Richard
Ivey School of Business at University of Western Ontario
CGA
x
x
x
x
Office Hours: 3:00pm to 5:00pm on Friday
Offi
3. Design and evaluation of MCS
and Strategy
Designing control systems
Two basic questions:
What is desired ?
What is likely to happen ?
If what is likely is different from what is desired, then
two basic MCS-design questions must be addressed:
What
Financial results controls
Three core elements:
Financial responsibility centers
The apportioning of accountability for financial results
within the organization
Formal management processes
Planning & budgeting to define performance
expectations
and s
2. Types of controls, control system costs
Reasons for implementing control systems:
To Influence Behavior
Goal Congruence: Individual Vs. Organization
Increase Motivation
Underlying theories:
Agency theory
Expectancy theory
Equity theory
Bus 424 second l
Financial Result Controls
Three core elements of financial results controls:
Financial responsibility centers
The apportioning of accountability for financial results within
the organization.
Formal management processes (planning & budgeting, Chapter
8
Dr. Johnny Jermias,
CPA CMA CA
4
BUS 42 l
eria
Manag
ng III
ccounti
A
WMC 3357
778 782 4257
[email protected]
Bus 424 lecture #1
1
Managerial Accounting III (Bus 424 E100)
Instructor:
Dr. Johnny Jermias, CPA, CMA, CA
Office:
WMX 3357
Telephone:
778-782-4257
Slide 1
BUS424 Advanced Managerial
Accounting
Lecture topic 4
FINANCIAL RESPONSIBILITY
CENTRES
Slide 2
Management
g
control alternatives
People
PEOPLE
CONTROL
Actions
ACTION
CONTROL
Results
FINANCIAL
RESULTS
CONTROL
Slide 3
What we will do today
y
Recall,
Slide 2.1
BUS424 Advanced managerial
acco nting
accounting
Lecture topic 2
TYPES OF CONTROLS
-1-
What we will do today
Types of controls in management control systems
Results control
Action control
Personnel
P
l controll
Cultural control
-2-
Managemen
Slide 1
BUS424 Advanced Managerial
Accounting
Lecture topic 6
DESIGN OF INCENTIVE SYSTEMS
Slide 2
What we will do today
What are incentive contracts?
How to design and evaluate incentive systems
Slide 3
Financial results controls
Three core elements
Fina
Slide 1
BUS424 Advanced managerial
accounting
Lecture topic 3
DESIGN AND
EVALUATING CONTROL
SYSTEMS
Slide 2
What we will do today
y
How to design and evaluate management control systems
Control system tightness
Control system costs
Slide 3
Designing and
Slide 1
BUS424 Advanced managerial
Accounting
Lecture topic 5
PLANNING AND BUDGETING
Slide 2
Wh t we will
What
ill do
d today
t d
Why are budgets important?
How budgets are set?
Beyond budgeting
Slide 3
Fi
Financial
i l results
lt controls
t l
Three core
EXHIBIT TWO-3
A FRAMEWORK FOR ANALYZING BROAD PROBLEMS
3. List the important
recurring and non-
recurring decisions
that must be made
about the crucial
factors in the success
of the organization—p
2. Spe
