Management control system

A management control system maintains a detailed level of oversight over the use of resources within a business. The system assigns responsibility for resource consumption to various individuals, whose performance is judged based on their ability to manage resources in the most effective manner possible. The control system works best when performance is tied to the goals of the organization. The information used in a management control system is based on a budget or other plan that is compared to actual results, with variances being reported to responsibility centers throughout the organization. Some of the techniques that can be used in this type of system are:

Related Courses

Accounting Controls Guidebook