Managament accounting

A management control system is a system which measures and corrects the performance of activities of subordinates in order to make sure that the objectives of an organisation are being met and the plans devised to attain them are being carried out.

The basic elements of a management control system are as follows.  Planning: deciding what to do and identifying the desired results  Recording the plan which should incorporate standards of efficiency or targets  Carrying out the plan and measuring actual results achieved  Comparing actual results against the plans  Evaluating the comparison, and deciding whether further action is necessary  Where corrective action is necessary, this should be implemented