Management Control Systems 4th Edition

Order # 53437
Discuss some of the harmful side-effects of control costs:Use Chapter 5 mainly and 6 attachment, Also outside sources and include citation in APA
Management Control System is a system to support management in the various activities and to guide the organization towards achievement of overall goals and objectives. Managers are willing to incur direct costs to obtain the benefit and at the same time they should also consider other indirect cost arise from negative side effects.
MCSs provide one primary benefit: a higher probability that employees will pursue
organizational objectives
● Willing to incur significant direct costs to try to derive this benefit
● Indirect costs can sometimes be way greater than the direct costs
○ Some of the indirect costs comes from negative side effects that are inherent in the use of
specific types of controls
○ Others are caused either by a poor MCS design or implementation of the wrong type of
control in a given situation
● To make informed cost-benefit judgements, managers must understand said side effects, their
causes, and their consequences/costs
MCSs provide one primary benefit: a higher probability that employees will pursue
organizational objectives
● Willing to incur significant direct costs to try to derive this benefit
● Indirect costs can sometimes be way greater than the direct costs
○ Some of the indirect costs comes from negative side effects that...