A well-designed management control system ignores nonfinancial objectives and focuses on financial objectives to develop and report measures of performance.

Question

Quizplus · Accepted Answer

A well-designed management control system should consider both financial and nonfinancial objectives and develop measures of performance for both. Ignoring nonfinancial objectives can lead to incomplete and potentially misleading performance evaluations.

A Well-Designed Management Control System Ignores Nonfinancial Objectives and Focuses