Which of the following is NOT a characteristic of the management control system?

a. It aids and coordinates the process of making decisions.
b. It encourages short-term profitability.
c. It motivates individuals throughout the organization to act in concert.
d. It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance.

Respuesta :

The purpose of a management control system is to enhance group decisions in a way that is economically viable. So the option b “It encourages short-term profitability” is NOT a characteristic of the management control system.

In order to facilitate and coordinate the process of making planning and control choices throughout the organization and to direct the behavior of its managers and employees, management control systems are a way to collect and use information.

The purpose of a management control system is to enhance group decisions in a way that is economically viable. The control system ought to be created with the goal of achieving organizational cohesion by utilizing the wide range of skills that each member of the workforce possesses.

The pursuit of both short-term and long-term objectives necessitates coordination in order to establish unity in variety, which is a constant demand of management control.

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