DANCEST 805 Lecture Notes - Lecture 29: Cruise Control, Capital Expenditure, Thermostat
Chapter 8. Controlling
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• Open-loop
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Feedback control
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Screening control
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Feedforward control
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financial control process
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Document Summary
Control process steps: establish standards, measure actual performance, compare performance with standards, take corrective action. Characteristics of effective control systems: effective, efficient, timely, flexible. Financial control -> the running of a firm"s costs and expenses in relation to budgeted amounts; shows how far over or under a budget" a firm is. Zero-based budgeting -> income - expense = 0. Variable budget -> financial plan of estimated revenues and expenses based on the current actual amount of output. Cost accounting - a process of recording, analysing and reporting all of a company"s costs (both variable and fixed) related to the production of a product, used to improve management. Financial statements -> provide the basic information for the control of cash and credit. Ii: balance sheet (statement of financial position) - the firm"s financial position at a particular instant in time. Iv. of the industry average suggests that the company may have liquidity problems.
