CH 9 - Management Accounting + Control Systems

Thursday, July 11, 2013

2:26 PM


Procedures, tools, performance measures, systems and incentives used to guide/motivate employees to achieve organization objectives and goals.

  • Goal congruence
    • Employees motivated to act in their own best interest also act in the best interest of the organization



MACS Design

  1. Technical considerations
    1. Accurate
    1. Timely
    1. Consistent - across divisions/units
    1. Flexible - adapt to local needs
  1. Behavioural considerations
    1. 4 behavioural characteristics (of well designed MACS
      1. Organization's ethical code of conduct
      2. Using a mix of performance measures (BSC approach)
      1. Empower employees to be involved in MACS design (and decision making)
        1. Includes budgets and budget process
      1. Develop appropriate incentive systems to reward
        1. Good performance




Problem 1

Machine generated alternative text: 9-69 Relationship between ethics in golf and business Refer to “Does Cheating
at Golf Lead to Cheating in Business?” in the In Practice box on page 347.
Discuss reasons why individuals might feel justified in cheating at golf and
whether individuals who cheat at golf are likely also to cheat in business.





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