To achieve maximum benefits at minimum cost, a management control system must
A) look at the short term only.
B) motivate managers with quarterly bonuses based on performance.
C) foster goal congruence and managerial effort.
D) be the same as the financial accounting system.

Question

Quizplus · Accepted Answer

A management control system should foster goal congruence, meaning that the goals of individuals and departments within the organization should align with the overall objectives of the company, and encourage managerial effort. This will maximize benefits while minimizing costs. Looking at the short term only or basing bonuses solely on quarterly performance may not take into account the long-term success of the organization. The management control system should complement, but not be the same as the financial accounting system.

To Achieve Maximum Benefits at Minimum Cost, a Management Control