Question

Explain the management control system

Answer 1

Solution. There exists numerous challenges in order to sustain in today's competitive economic market for the organization, management control system is a set of formal and informal system which encompasses bringing harmony of collected information from data on different resources employed namely- human, physical, finance with established strategies to achieve synergy and organizational objective within stipulated time. A business operates to create and satisfy customers by relying onto its management and employee co-ordination with different operation occurring simultaneously.

It facilitates in measuring and interpreting organization's performance and accounting procedures by looking into matters of maintaining, controlling and administering different resources with performance strategically approved to meet organizational set objective of profit making along with social impact in society, because resources are limited and usage are numerous, a smart strategic plan can head an organization by bridging gap between actual and determined standard performance.