Accounting and Management Control Systems Order Instructions: Search for the following concepts when looking for appropriate resources:
•Management control systems
•Incentive compensation systems
•Management by Objectives
•Controllable versus uncontrollable costs
The bibliography needs to be done as an APA formatted annotated bibliography. Please use the link below to see how an annotated bibliography is formatted.
•Each cited source needs to be specifically linked to the concepts in the case. Please do not cite random sources.
•Make sure your annotation captures the important point of the source. Please do not give a one-sentence summary.
Accounting and Management Control Systems Sample Answer
Dropulić, I. (2014). DESIGN OF MANAGEMENT CONTROL SYSTEMS – A STUDY OF JOINT STOCK COMPANIES IN CROATIA. Management: Journal Of Contemporary Management Issues, 19(2), 157-167.
This article sheds light on the definition and proper understanding of the management control system. There has been little understanding of this concept by varied entrepreneurs and scholars. There has been little research done to ascertain the level of understanding of this concept by entrepreneurs and at great extents, the usage of the concept in the right way.
Designing of management control systems must be done in accordance to the specific needs of the organization in question, (Dropulić, 2014). Although the basics of management control systems are the same, there ought to be manipulation of the essential elements to suit the particular organization. Failure to adhere to this concept leads to coming up with management control systems, which could be too costly for the organization and may even be irrelevant.
In coming up with management control systems, there ought to be special consideration given to administrative and cultural elements, (Dropulić, 2014). This does not mean that the other aspects are of no great importance, but these two aspects are very crucial to the stability of organizations especially the multinational ones.
In this article, survey methodology has been used, which gives the work more credibility. Basing the survey on Croatia gives the article more credit because there has been the choice of a specific region.
Friis, I., Hansen, A., &Vámosi, T. (2015). On the Effectiveness of Incentive Pay: Exploring Complementarities and Substitution between Management Control System Elements in a Manufacturing Firm. European Accounting Review, 24(2), 241-276. doi:10.1080/09638180.2014.976055
This article sheds light on the importance of incentives in an organization. This area has been much avoided by many scholars due to the connotation that as long as employees are receiving their salaries, there is no need for them to be given incentives.
This article points to the realization that it is very essential for organizations to embrace the spirit of giving incentives to employees on top of creating a conducive working environment. There is an insight into the great lengths that incentives can go in terms of influencing the employees to reach goals that would otherwise not be reachable without the incentives, (Friis, Hansen &Vámosi, 2015).
There is pointing out to the different methodologies that could be adopted as incentives. This view follows the realization that incentives are very much linked to motivation. Human beings are different, and are therefore motivated by different factors. It is therefore crucial to consider varied incentive methods, depending with the organization but more so in consideration of the individual employees. This article is credible because, it has used an in depth case study in making clear the process of implementing a new incentive program as part of management control systems.
Čiutienė, R., &Petrauskas, P. (2012). MANAGEMENT BY OBJECTIVES USING COACHING. Economics & Management, 17(4), 1559-1563. doi:10.5755/j01.em.17.4.3029
This article engages in discussion of embracing management by objectives with much alignment to the importance of coaching in the process. In the recent organizational leadership endeavors, there has been much encouragement of adoption of management by objective whereby; the management has the objectives or short term goals of the organization in mind. When there is adoption of management by objectives, there is lower chances of wastage of managerial energies by focusing on nonessential issues, (Čiutienė&Petrauskas, 2012).
This article is credible because it examines theoretical principles of management. Although in the recent times there has been much arguments against theoretical principles of management, it is crucial to note that; to attain the practical facets of management, managers ought to first understand the theoretical realm. This article is therefore insightful because it offers a platform for understanding of those theoretical principles of management.
There is also insights into the diversified areas of the application of management by objective aspect. In the past, there had been propositions that management by objectives was only applicable in the private sector. This article sheds lights in understanding that management by objectives is also applicable to the rivate sector, (Čiutienė&Petrauskas, 2012).T he processes and implementation steps are well presented and analyzed.
Bol, J. C., Hecht, G., & Smith, S. D. (2015). Managers’ Discretionary Adjustments: The Influence of Uncontrollable Events and Compensation Interdependence. Contemporary Accounting Research, 32(1), 139-159. doi:10.1111/1911-3846.12070
Many business management scholars have not been able to distinguish the controllable and the non-controllable costs. There has been a failure to separate the two and therefore much inability to balance the same in organizations, (Bol, Hecht & Smith, 2015). This article sheds light on the uncontrollable costs in relation to the controllable costs. Many people have had the connotation that, the non-controllable costs are unavoidable and therefore, understanding them is of no positive consequence.
This article points to the realization that; when entrepreneurs understand the extents of uncontrollable costs, they are capable of mitigating the extent of the cost. There is also more potential of mitigating the spill of the uncontrollable costs to the controllable costs. Understanding the distinction between the two means that; one is capable of striking a balance between the two in undertaking any business venture that entails both controllable and uncontrollable costs, (Bol, Hecht & Smith, 2015).
This article offers insights into the efforts that could be made to enhance controls in the future undertakings of the business. Articulating the understanding of the controllable and uncontrollable costs is critical in adjusting management control systems. It is not possible to come up with viable management control systems without first distinguishing the controllable and uncontrollable costs such that the best option is undertaken. This paper offers insight into understanding the distinctions of the two variable costs.
Accounting and Management Control Systems References
Bol, J. C., Hecht, G., & Smith, S. D. (2015). Managers’ Discretionary Adjustments: The Influence of Uncontrollable Events and Compensation Interdependence. Contemporary Accounting Research, 32(1), 139-159. doi:10.1111/1911-3846.12070
Čiutienė, R., &Petrauskas, P. (2012). MANAGEMENT BY OBJECTIVES USING COACHING. Economics & Management, 17(4), 1559-1563. doi:10.5755/j01.em.17.4.3029
Dropulić, I. (2014). DESIGN OF MANAGEMENT CONTROL SYSTEMS – A STUDY OF JOINT STOCK COMPANIES IN CROATIA. Management: Journal Of Contemporary Management Issues, 19(2), 157-167.
Friis, I., Hansen, A., &Vámosi, T. (2015). On the Effectiveness of Incentive Pay: Exploring Complementarities and Substitution between Management Control System Elements in a Manufacturing Firm. European Accounting Review, 24(2), 241-276. doi:10.1080/09638180.2014.976055
