Management accounting techniques pdf

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Management control system influences the behavior of organizational resources to implement organizational strategies. Management control system might be formal or informal. Management control systems are tools to aid management for steering an organization toward its strategic objectives and competitive advantage. Management controls are only one of the tools which management accounting techniques pdf use in implementing desired strategies.

However strategies get implemented through management controls, organizational structure, human resources management and culture. The term black box is used to describe an operation whose exact nature cannot be observed. 1972 article “On the idea of a management control system. According to Maciariello et al. The practice of management control and the design of management control systems draws upon a number of academic disciplines. Management control involves extensive measurement and it is therefore related to and requires contributions from accounting especially management accounting. Second, it involves resource allocation decisions and is therefore related to and requires contribution from economics especially managerial economics.