Management Accounting Essay
Management control is to ensure that the organization achieves its objectives. Once the objectives have been agreed, action plans should be drawn up so that the progress can be directed towards the ends specified in the objectives. Such objectives are used to make comparison with alternatives in decision making & are also the critical elements in evaluating the success or failure of the action plans. One of the most widely used management control systems is the budgetary control & the term “Budget” itself is one of the objectives that is expressed quantitatively in financial value . Undoubtedly budget is drawn up for control purposes & guiding the organization towards its objectives.
The …show more content…
Down to departmental level, management control includes all activities designed to ensure that a department accomplishes its objectives; complies with company policies & uses employees’ time & resources appropriately. Departments are responsible for setting up, following, & regularly reviewing their management controls. The basic departmental responsibility in management control should be more than ensuring expense within budget; management controls should include both financial controls & non-financial controls. Establishing & maintaining an internal control structure is an important departmental management responsibility. To provide reasonable assurance that an entity's objectives will be achieved, the internal control structure should be under ongoing supervision by management to determine that it is operating as