A Rational Integration Of Managerial Accounting Techniques Essay examples

1255 Words Jul 4th, 2015 6 Pages
A management control system can be said to be a rational integration of managerial accounting techniques & tools which first collects information then reports that information and evaluates performance. This performance evaluation encompasses evaluation of performance of the various resources used in the organization as a whole which includes both financial and non-financial resources. Non-financial resources may include physical resources, human resources etc. On a strategic level, management control systems greatly impact the conduct and behavior of the different resources and organizational assets in the implementation of organizational strategies.
Having a basic understanding of a management control system, let’s look at the different purposes it serves. First and foremost, it vividly communicates the goals of the organization. However, only communicating the overall organizational goals is not enough. The management control system also ensures that all the management and employees have a comprehension of the specific actions that are needed of them in order to successfully achieve the overall goals of the organization. Then a management control system communicates the outcomes and results of actions taken organization wide. Finally, the management control system self ensures that it adjusts and responds accordingly to change in the environment.
We can say that the following steps are typically involved in a management control system:
1. Firstly, specification of the…

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