Chapter 22, Problem 22.1Q

To determine

Management Control System:

The management control system is a system made to collect information and use that information for the evaluation of the performance of different parts of the organizational resources.

To explain: The management control system.

Answer to Problem 22.1Q

The management control system is a way by which information is gathered and then this information is used to form the planning and control decisions in an organization. This helps in guiding the behavior of the managers and employees.

An effective management control system will have the following factors:

• The system will be closely related to the strategy of the organization.
• The system should support the responsibilities of the managers of the organization.
• The management control system should motivate the managers as well as the employees to help them achieve the goals of the organization.

Explanation of Solution

• The management control system is a system made to help all the other parts of an organization like the human resource, finance, and manufacturing.
• This system collects information to help the management in planning.
• As planning is very important for any organization to attain its objectives, so the management control system is an important part of an organization.

Conclusion

Thus, the management control system is a system made to collect information for the plans to be made in an organization to help the organization evaluate and attain its objectives