Employee behaviour is one of the factors that must be considered when designing the managerial accounting control system.

Question

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Employee behaviour can have a significant impact on the effectiveness of managerial accounting controls, so it must be taken into account when designing the system. For example, if employees are rewarded solely based on short-term financial performance, they may engage in unethical behaviour to achieve those goals. Alternatively, if employees are not given enough information or training on how to use the system, they may make errors or not use it at all. Therefore, it is important to design a system that aligns with the company's values, takes into account behavioural incentives, and provides adequate training and support.

Employee Behaviour Is One of the Factors That Must Be