Cost Accounting (15th Edition)

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

Chapter 23 - Performance Measurement, Compensation, and Multinational Considerations - Assignment Material - Questions - Page 899: 23-15

Answer

The four levers of control in organizations are diagnostic control systems, boundary systems, belief systems, and interactive control systems. Diagnostic control systems track critical performance variables to measure progress toward strategic goals and take action when necessary. Boundary systems establish behavioral standards and codes of conduct to prevent harmful actions. Belief systems articulate a company's mission, values, and behavioral norms. Interactive control systems are used to focus the organization's attention on strategic issues and facilitate ongoing discussions about uncertainties and opportunities in the business environment.

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