A management control system must _____ to achieve maximum benefits at minimum cost.
A)look at the short term only
B)motivate managers with quarterly bonuses based on performance
C)foster goal congruence and managerial effort
D)be the same as the financial accounting system

Question

Quizplus · Accepted Answer

A management control system should foster goal congruence, meaning that the goals of the employees should align with the goals of the organization. In doing so, it incentivizes managerial effort and promotes efficient use of resources, resulting in maximum benefits at minimum cost. Looking at the short term only or solely motivating managers with bonuses based on quarterly performance may lead to short-sighted decisions and potential unethical behaviors. The management control system should also be tailored to the specific needs and goals of the organization and not necessarily be the same as the financial accounting system.

A Management Control System Must _____ to Achieve Maximum Benefits