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

Question

Quizplus · Accepted Answer

A well-designed management control system should not ignore nonfinancial objectives. Nonfinancial objectives, such as customer satisfaction and employee engagement, are important factors that contribute to long-term financial success. A balanced scorecard approach that includes both financial and nonfinancial measures is recommended for effective management control systems.

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