MANAGEMENT CONTROL SYSTEM
SYLLABUS
UNIT I
Characteristics of Management Control System - Evolution of control systems in an organization - Relating system to organizational objectives - Strategic Planning, Management Control and Operational Control - Goal Congruence - Cybernetic Paradigm of Grissinger - Functions of the Controller.
UNIT II
Responsibility Centers - Types of Responsibility Centers - Expense Centers, Profit Centers and Investment Centers - Budgetary Control as a tool for Management Control Systems - Engineered, Discretionary and Committed Costs -
Approaches to budgeting w.r.t. Engineered and Discretionary costs - Benchmarking and Total Cost Management.
UNIT III
Transfer Pricing (Market based and Cost Based) - Related numerical problems - Return on Investment, Economic Value Added, Capital Budgeting and Ratio Analysis as a tool to management performance measurement.
UNIT IV
Management Control Systems in Service Sector vis-à-vis in Manufacturing Sector - Financial and Non-financial performance measures with reference to Balance Score Card (Rock Water's Model).
UNIT V
Long Range Planning - Converting corporate vision into a long-range plan - Input Output Relationship Introduction to Audit Function as a control tool covering Financial Audit, Internal Audit and Cost Audit - Management Audit - Principles and Objectives A minimum 5 cases in designing and implementation of control systems.