Which BEST describes the purpose of a management accounting and control system (MACS)?
A)A MACS defines the value chain and identifies nonvalue-added activities for a business.
B)A MACS helps decision makers determine whether strategies and objectives are being met.
C)A MACS offers a system of controls to ensure employees are meeting predetermined standards.
D)A MACS provides a signal for management attention when areas are out-of-control.

Question

Quizplus · Accepted Answer

A management accounting and control system (MACS) is designed to help decision makers evaluate whether strategies and objectives are being met. It provides information about financial and non-financial performance measures, which can be used to make informed decisions and take corrective actions when necessary. While a MACS may also include controls to ensure employees meet standards and provide signals for management attention, its primary purpose is to help with decision making and performance evaluation. Option A is incorrect because defining the value chain and identifying non-value-added activities is more related to process improvement than management accounting and control. Option D is partially correct, but it does not capture the full purpose of a MACS.

Which BEST Describes the Purpose of a Management Accounting and Control