Which of the following is a characteristic of a management control system?
A) It aids and coordinates the process of making decisions.
B) It encourages short-term profitability and maximizing net income.
C) It helps individuals throughout the organization to act independently and maximize the profitability of their departments.
D) It deals with coordinating planning across the organization and is not concerned with behavioral aspects of management like employee motivation.

Question

Quizplus · Accepted Answer

A key characteristic of a management control system is that it aids and coordinates the process of making decisions. This involves collecting, analyzing, and reporting financial and non-financial information to assist managers in making informed decisions.

Answer: B
 This choice is not a characteristic of a management control system. While maximizing net income is often a goal of businesses, a management control system should not encourage short-term profitability at the expense of long-term success and sustainability.

Answer: C
 This choice is not a characteristic of a management control system. While a management control system may provide guidelines and targets for departments and individuals, it should also encourage collaboration and communication across departments to achieve overall organizational goals.

Answer: D
 This choice is not accurate as a management control system typically deals with both coordinating planning across the organization and addressing behavioral aspects of management. In addition to financial metrics, a management control system may include performance indicators related to employee motivation, customer satisfaction, and other non-financial factors.

Which of the Following Is a Characteristic of a Management