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

Managerial Control Systems - Assignment ExampleThe second phase is the identification of opportunities for revenues and costs that the existing system fails to report, and the specification of what changes must be adoptive in the system in order to better highlight the opportunities, to make the business more profitable yet more surroundingsally 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 soundbox in applying these measures. The final 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 assessment seeks to determine whether the changes introduced leads to improved prudence decision-making. Included in the assessment is an evaluation of mana gement 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 balance, the general ledger, and the income statement and balance sheet). There is no categorisation or distinction among costs, all being reported together as overhead. These outputs argon 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 distinguished as to capital work and capital replacements. Acquisition price form the sole measuring stick for deciding among projects, without taking into account the forecasted revenues/ benefits accruing therefrom. There is no system for monitoring costs by and by acquisition of either capital works or replacement in the case of the latter, replacements depend upon user requests and not upon any systematic capital budgeting method. 3. signalise 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) agree to the case study, there are four environmental impacts of MLCs operations. These are energy usage, paper usage, water usage and waste 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, tour costs incurred for waste 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