ACCOUNTG 331 Chapter Notes - Chapter 1.2: Legacy System
9 Sep 2016
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Accounting 331 - chapter 1. 2 three recurring themes and a unifying principle. Three themes run throughout this book: theme 1: match reporting systems to organizational needs. Every organization, and every part of an organization, must design their reporting system to meet their specific needs. A system that is better on one dimension is typically worse on another, unless you devote more time and money to it: theme 2: managerial reporting systems mitigate and are compromised by intra-organizational conflict. Between superiors and subordinates, and between peers who compete for limited resources. Good reporting systems lessen the cost of intra-organizational conflicts, but almost all can be used as weapons in those conflicts, and as a result can become compromised: theme 3: no system is perfect. Like any bureaucratic system, management reporting systems are too crudely fashioned to provide perfect responses to every challenge an organization might face.
