Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 22 - Management Control Systems, Transfer Pricing, and Multinational Considerations - Assignment Material - Questions - Page 865: 22-2

Answer

To evaluate the effectiveness of a management control system, consider these three criteria: 1. Alignment with Organizational Goals: The system should be in harmony with the organization's strategies and objectives. 2. Support for Managerial Responsibilities: It should empower individual managers to perform their roles effectively. 3. Motivation and Goal Achievement: The system should motivate managers and employees to work towards achieving top management's goals.

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