A well-designed management control system uses information from ________.
A) internal sources only as they are the most reliable sources of information
B) external sources only as they are more dynamic and future oriented
C) both internal and external sources as a wide range of information is required
D) external sources only as they are the most reliable sources of information

Question

Quizplus · Accepted Answer

A well-designed management control system should gather information from both internal and external sources. Internal sources provide information on the company's performance and operations, while external sources provide information on market trends, competitors, and economic conditions. A wide range of information is required to make effective decisions and develop strategies for the success of the organization. Choosing option A or D, which suggest relying on only one type of source, would limit the scope and quality of the information available for decision making. Option B is also incorrect as external sources are not necessarily more reliable, and internal sources are essential for evaluating the efficiency of the company's internal processes.

A Well-Designed Management Control System Uses Information from ________