Term
| Name the four major steps in the Control Process |
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Definition
Establish Standards Measure Performance Compare Performance Against Standards Determine Need for Corrective Action |
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Term
| Components of Establishing Standards |
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Definition
| Control standards should be : Measurable, consistent with organizational goals. and indicators of performance. |
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Term
| Components of Measuring Performance |
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Definition
| Performance measruing is an ongoing process and must contain valid indicators such as Sales, Cost, Units produced. |
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Term
| Components of Comparing Perform. Against Standards |
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Definition
| Utilizing the appropriate timetable for measurement |
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Term
| Components of Considering Corrective action |
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Definition
| Maintain the status quo, correct the deviation, change the standard |
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Term
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Definition
| Physical, Human, Information, Financial Resources |
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Term
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Definition
Adapt to environmental change Limit errors Cope with organizational complexity Increase efficency |
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Term
| Difference between Managers and Controllers |
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Definition
Managers are responsible for control activities Controllers line managers with their activities |
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Term
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Definition
Strategic Control Operations Control Financial Control |
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Term
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Definition
| Consistes of Material Human Information or which controls should be in place to monitor inputs |
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Term
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Definition
| Control financial resources such as investments, revenues, working capital and retained earnings. |
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Term
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Definition
Budgets may be establish at any level Budgets are typically one year or less May be expressed in finacial terms, units, or other quantable factors. |
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Term
| Budgets help serve four purposes: |
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Definition
Help coordinate resources and projects Help define the established standards for control Provide guidance Help evaluate performance against budget |
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Term
| Process of Developing Budgets |
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Definition
Operating Units requests budget Division requests budget Budgets are analyzed by budget commitee and approved by CEO |
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Term
| Budgets Weakness/Strengths |
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Definition
Strengths: Create more control, create more departmental communication, Provide records Weaknesses: Can be time consuming, can limit innovation and change, many tiems influenced by politics rather than what is best for the company. |
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Term
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Definition
Aimed at keeping an organization moving forward. Focuses on structural, leadership, technology, and the extend to which strategy achieves goals. |
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Term
| Five Characteristics of Effective Control |
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Definition
Integration w/ Planning Flexibility Accuracy Timeline Objectivity |
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