ACCT I S 211 Chapter Notes - Chapter 11: Accounts Receivable, Opportunity Cost, Transfer Pricing
13 Oct 2016
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The environment of financial control financial control involves use of measures based on financial information. Assess org and management performance: multiple possible focuses of attention: Entire org: focuses on financial results opposite of bsc, summarizes actual financial results and compares them to planned results identifies why planned results were not achieved. Financial control info gathered by financial control tools to evaluate org units is generally used internally internal financial control developed to support decentralizing of decision-making info in large orgs. Evaluate profitability of a product or product line info gathered by financial control tools to assess various aspects of org performance is generally used externally: external financial control. Decentralization process of delegating decision-making authority to frontline decision makers: created for 2 reasons: 1. as orgs grow, it becomes more difficult for a central decision maker, or core of decision makers, to make all org decisions. Centralization: best suited for orgs that are well adapted to stable environments.
