Discuss the two types of control found in organizations
What will be an ideal response?
Managerial control involves two types of managerial activity. Strategic control is when managers work with other managers to ensure that together they carry out organizational strategies as a whole. Task control is focused on the efficient and effective execution of specific tasks of individuals and work teams. Here the interaction is primarily between managers and non-managers, in which both work to ensure that the work procedures are followed. The interaction can also be between humans and machines, in which the human attempts to control the output of the machine according to predetermined specifications. Control can work the opposite way, too. When human labor is dependent on the machine, the machine acts as a control on employee behaviors. For example, managers set the controls on the speed of a moving assembly line. The speed of the line acts as a control on the line workers who must keep up their pace.
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Island Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances
Island has four public relations specialists and office staff. At the beginning of the year, Island estimated the total cost of salaries and benefits for the public relations specialists at $684,000 and a total of 7,600 billable hours for the year. The office and administrative costs were estimated at $418,000. The allocation base for office and administrative costs is billable hours. In June, Island signed a contract for a Russian ballet performance. It negotiated a price of $6,800 for its services. When the job was complete, Island's records showed that it had logged 37.0 billable hours. What was the actual total cost of the job for Island? A) $5,365 B) $2,035 C) $3,330 D) $1,295
One of the main objectives of performing analytical review procedures during the planning phase of the audit is to identify:
A) Transactions that have not been properly authorized. B) Illegal acts undetected as a result of poor internal controls. C) Inefficient operations. D) Unusual changes that may signal possible account misstatements.