Management Control Systems and Performance Measurement Quiz

Action controls focus on the actions taken to achieve a result, while result controls focus on the actual outcomes or results achieved.

Soft metrics are qualitative measures such as employee satisfaction, while hard metrics are quantitative measures such as financial performance.

Incentive compensation provides a direct link between performance and rewards, motivating managers to work towards achieving specific goals and targets.

<p>Residual income (RI) focuses on absolute profits, while Economic-value-added (EVA) considers the cost of capital. Both methods provide a clear measure of economic profit and encourage efficient use of resources.</p> Signup and view all the answers

<p>They expand the frontiers of performance controls by incorporating nonfinancial performance indicators to motivate better environmental quality.</p> Signup and view all the answers

<p>The control responsibilities of the Board of Directors include overseeing the company's strategic objectives, monitoring corporate performance, and ensuring compliance with laws and regulations.</p> Signup and view all the answers

<p>The Board audit committee is responsible for overseeing financial reporting, internal controls, and risk management processes to ensure accuracy and integrity of financial information.</p> Signup and view all the answers

<p>Corporate governance focuses on the structures and processes for decision-making and accountability, while management control systems are the tools and processes used to implement corporate governance.</p> Signup and view all the answers