To Design a Management Control System That Meets an Organization's

question 105

Multiple Choice

To design a management control system that meets an organization's needs,managers must identify what motivates employees,________ and ________.

• A) develop performance measures based on these employee motivators; establish a monitoring and reporting structure for the performance measures
• B) develop performance measures to encourage managerial effort; establish a monitoring and reporting structure for productivity
• C) develop performance measures that meet organizational objectives; establish an accounting system to measure productivity
• D) develop performance measures based on goal congruence; establish an accounting system to measure goal congruence

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Definitions:

Producer Surplus

The difference between what producers are willing to sell a good for and the market price they actually receive, representing their net benefit.

Free Trade

International trade left to operate without tariffs, quotas, or other restrictions, allowing for the unrestricted exchange of goods and services between countries.

Autarky

A condition in which an economy is self-sufficient and does not engage in international trade.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society.