MGAD40H3 Chapter 1: Chapter 1 Notes
Document Summary
Performance measurement & control systems: the formal, information based routines and procedures managers use to maintain or alter patterns in organizational activities: purpose is to convey information. These systems focus on data: represent formal routines and procedures, specifically designed to be used by managers, used by managers to maintain or alter patterns in organizational activities. Accounting systems: collect information about the transactions of a business. Internal control systems: set of procedures that dictate how and by whom information should be recorded and verified. Profit plan: a summary of future financial inflows and outflows for a specified future accounting period. Profit plans involve analyzing past trends, making assumptions concerning cause and effect, and predicting expected outcomes. Managers must determine: the quantity and type of resources that should be committed to a business, the resources that will be provided by the business.