Managerial Control Systems Assignment Example | Topics and Well Written Essays - 2000 words

Managerial Control Systems - Assignment ExampleThe second strain is the identification of opportunities for revenues and costs that the existing administration fails to report, and the specification of what changes must be adopted in the system in order to better highlight the opportunities, to make the business more profitable yet more environmentally sustainable. It requires establishing control by assigning responsibility centres and sub-centres, the drivers relevant in their cost assignment, and the setting up of records to duly report activities and allocation of corresponding costs. It also involves proper communication and consistency in applying these measures. The net phase is the trial and documentation of changes to discover how the changes will affect the results from those achieved under the current system. This trial and sagaciousness seeks to determine whether the changes introduced leads to improved management decision-making. Included in the assessment is an eva luation of management tools introduced, how they enhance the relevance of the information delivered to managers, and the potential and opportunities created in enhancing the type, quality and accuracy of managers decisions that impact on the environment and the firms future profits. 2. ... t generates the standard summary accounting information (chart of accounts, trial symmetry, the general ledger, and the income line and balance sheet). There is no categorization or distinction among costs, all being reported together as overhead. These outputs are used to manually generate the pertinent spreadsheet leading to the more detailed income and expenditure statement and cash flow forecast, which have greater detail to support management decisions. Capital expenditures are autocratic as to capital works and capital replacements. Acquisition price form the sole criterion for decision making among projects, without taking into account the forecasted revenues/ benefits accruing in th at respectfrom. There is no system for monitoring costs after acquisition of all capital works or replacement in the case of the latter, replacements depend upon user requests and not upon each systematic capital budgeting method. 3. Identify the environmental impacts associated with MLCs operations and explain how the costs associated with the environmental impacts are treated and flow through MLCs accounting system (6 marks, 1 page) According to the case study, there are four environmental impacts of MLCs operations. These are energy system, paper usage, water usage and drive out management. Each of the costs associated with these impacts are coded directly into the firms expenses accounts. Expenses that go into energy, paper and water usage are assigned to the broad category of administration and general overhead expenses, while costs incurred for muff management are recorded under caretaking and cleaning overhead expenses. The costs are loosely allocated between tuition and boarding the criterion for doing so is not specifically provided for, and is