Week 4 - Budgetary Control Questions + Answers

Week 4 - Budgetary Control Questions + Answers what are the different types of organisational goals? (FPCS) - ANS-- financial: high profit and low risk - profitability: ROI - cost effectiveness: non-profit organisations - strategic: sustain and build competitive advantage what are the advantages of centralised management systems? (CCQT) - ANS-- consistent policies and standardised procedures - customer knows what to expect - quick decision-making - tight financial control what are the disadvantages of centralised management systems? (LIM) - ANS-- local managers may have better knowledge - inappropriate decisions - motivation of managers what are the advantages of decentralised management systems? (BERMI) - ANS-- benefits sales and promotion targets - empowers local managers - reduces day-to-day communication with head office - more flexible to respond to customer demands - improved motivation what are the disadvantages of decentralised management systems? (CL) - ANS-- customers may prefer uniformity - local managers may see bigger picture CONTINUES...