Management Control systems and Cost management

Question 1

What are the levels of control within the organisation?

Answer 1

1. Strategic control
2. Management Control

Question 2

What are the types of Control?

Answer 2

1. Behavioral Control
2. Cultured Control
3. Output Controls

Question 3

What are feedback and feed-forward controls?

Answer 3

• Feedback - moniters the output received and provides correction or advice based on that
• feed-forward controls are ones that make predictions of what the output is going to be and if it is not desirable, then corrective action is taken now and not later

Question 4

Are there any downsides to controls?

Answer 4

1. Can cause negative attitudes in the workaplce
2. Can cause a lack of goal congruence
3. Routinize their jobs rather than be creative

Question 5

Name 9 methods of cost management?

Answer 5

1. Life cycle Cost management
2. Target costing
3. Kaizen costing - the difference with kaizen costing is that it is applied during manufacturing and not design like target costing
4. Activity Based Management
5. Bench marking
6. Bench marking
7. Business process re-engineering
8. Just-in-time systems
9. Quality Cost management
10. Value chain analysis