Management Control Flashcards
1
Q
What factors drive Management Accounting?
A
- increased competitive environment
- changing product lifecycles
- focus on customer requirements
- new approaches by management
2
Q
What roles does accounting information have in control?
A
- quantitative mechanisms to monitor performance
- monetary terms can be aggregated or analysed
3
Q
what are the 3 E’s related to management accounting ?
A
- Effectiveness
- Efficiency
- Economy
4
Q
What types of management control are there?
A
- behavioural
- cultual
- results based
5
Q
What is the contingency theory of management control?
A
there is no universally appropriate accounting system applicable to all organisations in all circumstances
6
Q
what is the difference between feedback vs feedforward?
A
feedback - monitoring actual vs desired results
feedforward - expected vs desired results
7
Q
What are the 5 major standards for comparison?
A
- comparison to previous time period
- against similar organisations
- (ex ante) - estimate of expected performance
- (ex post) - estimates of what might have been achieved
- necessary performance to achieve defined goals and objectives
