Fechar
Primary function of management control
benefit of management control
management control
disadvantages of management control
strategic control vs management control
why is management control necessary?
lack of direction
motivational problems
personal limitations
good control
trade-off
avoidance of control problems
results control (RC)
disadvantage results control
management by exception approach
implementation of results control (4 steps)
conditions determining effectiveness of RC
result measures should be
controllability principle
action control
4 types of action control
behavioral constraints
pre-action reviews
action accountability
redundancy
control problems addressed by RC
control problems addressed by behavioral constraints
control problems addressed by redundancy
control problems addressed by pre-action reviews
control problems addressed by action accountability
preventive controls
detective controls
effectiveness of action controls depend on
cultural control
personnel control
personnel controls serve 3 basic purposes:
how to implement personnel controls
forms of cultural controls
control problems addressed by selection & placement
control problems addressed by training
control problems addressed by job design & provision of necessary resources
control problems addressed by job rotation
control problems addressed by group rewards
control problems addressed by tone at the top
control problems addressed by physical & social arrangements
control problems addressed by codes of conduct
tight control
desired results must be
performance measures must be
reinforcements/incentives provided must be
what makes controls tight?
investing in MCS causes
direct out of pocket costs
indirect costs of implementing MCS
behavioral displacement
forms of behavioral displacement
behavioral displacement @ RC
behavioral displacement @ AC
reasons for incongruence of result measures and true orga objectives
when action controls?
behavioral displacement @ personnel/cultural control
gamesmanship
2 forms of gamesmanship
creation of slack resources
advantages/disadvantages slack
data manipulation
falsification
data management
operating delays
negative attitudes produced by action controls
negative attitudes produced by results control
result controls and possible harmful side effects
behavioral constraints and harmful side effects
pre-action reviews and harmful side effects
action accountability and harmful side effects
redundancy and harmful side effects
selection & placement and harmful side effects
training and harmful side effects
creation of strong organizational culture and harmful side effects
group based rewards and harmful side effects
how to design an MCS?
understanding desired actions & results
choice of controls
avantages AC
disadvantages AC
advantages RC
disadvantages RC
choice of control tightness
tight controls most beneficial
usually when firm grows
optimal form of control
opportunity cost of capital
future value (FV)
present value (PV)
perpetuity
annuity
monthly interest rate
capital budgeting
discount cash flows, not accounting earnings
working capital
sunk costs
financing costs
payback
decison making (7 steps)
usefulness of data
primary role of managerial accountant
relevant information
joint prodction process
split-off-point
theory of constraints
managing constraints
sensitivity analysis
purposes of incentives
monetary incentives
stock option plans
advantages stock option plans
disadvantages stock option plans
restricted stock plans
evaluate incentive systems
group rewards
investment myopia
operating myopia
channel stuffing
divisonalization
ROI
disadvantages ROI
suboptimization
remedies to myopia problem
hedgehog concept
financial intermediaries
information intermediaries
role of financial reporting in capital markets
matching savings to business is complicated bc
goal of financial analysis
ratio analysis
cash flow analysis
time-series compariosn
cross-sectional comparison
ROE
ROA
output of planning and budgeting system
4 main purposes of planning and budgeting
strategic planning
capital budgeting (programming)
operational budgeting
model based targets
historical targets
solution to budget gaming problem
internal control (coso definition)
5 components of internal control (coso)
control environment
risk assessment
residual risk
control activities
information & communication
monitoring
corporate governance
steering paradigm
value cycle
segregation of duties involves segregation of...
reconciliations
direct checks
indirect checks
total checks
detailed check
3 steps of mitigating risks
information reliability
misstatements
MCS feedback loop
more control = better control?
proactive controls
avoidance
poka-yokes
