Guide and System-Based Concepts
management control - correct answer ✔✔includes all activities an organization undertakes to
ensure that its actions lead to achievement of its objectives
management control system - correct answer ✔✔a planned, ordered scheme of management
control that allows managers to readily assess where the firm actually is at a point in time
relative to where it wants or expects to be.
Internal controls - correct answer ✔✔processes that are developed to provide that are
developed to provide assurance than an organization reaches its objectives relating to
operational efficiency, accuracy of financial reporting, and regulatory compliance.
Performance Standards - correct answer ✔✔the first step in the control process; targets set by
management against which actual performance is compared at a future date
Organizational control - correct answer ✔✔A broad-based form of control that guides all
organizational activities and oversees the overall functioning of the whole firm
Bureaucratic control - correct answer ✔✔Attempts to control the firm's overall functioning
through formal, mechanistic structural arrangements; sometimes called hierarchical control.
Clan Control - correct answer ✔✔Seeks to regulate overall organizational functioning through
reliance on informal, organic structural arrangements; also referred to as decentralized control.
Operations Control - correct answer ✔✔Regulates one or more individual operating systems
within an organization