What is the first step in designing a management control system?
A)evaluating management's performance
B)establishing organizational goals
C)preparing financial statements
D)differentiating between profit centers and cost centers

Question

Quizplus · Accepted Answer

The first step in designing a management control system is to establish the organizational goals. These goals will help determine the measures that need to be put in place to monitor and control the performance of the organization towards achieving those goals. Evaluating management's performance, preparing financial statements, and differentiating between profit centers and cost centers are all steps that come later in the process.

What Is the First Step in Designing a Management Control