The management control system should be designed to achieve the best possible alignment between ________ and ________.
A) cost centers; profit centers
B) local managers' decisions; upper managers' bonuses
C) employee behavior; agency theory
D) local managers' decisions; the actions upper management seeks

Question

Quizplus · Accepted Answer

The management control system is designed to ensure that the decisions made by local managers are aligned with the actions that upper management seeks. This alignment allows for better communication and coordination between all levels of the organization, ultimately leading to the achievement of the company's objectives. Cost centers and profit centers, local managers' decisions and upper managers' bonuses, and employee behavior and agency theory are all important components of the management control system, but they are not the primary focus of this system.

The Management Control System Should Be Designed to Achieve the Best