An approach to management control by application of the principle of management by exception. - Page 28 |
Save page Remove page | Previous | 28 of 145 | Next |
|
small (250x250 max)
medium (500x500 max)
Large (1000x1000 max)
Extra Large
large ( > 500x500)
Full Resolution
All (PDF)
|
This page
All
|
21
a historical basis rather than against the best known possible performance. Furthermore, they generally provide no adequate basis for delegation of responsibility and authority; frequently they do not give thorough coverage to all kinds of expense, but concentrate tions. Other technical fueaptounr etsh,e psruocdhu cast ipvreo -orpaetreas,
burden centers, and machine rates, make them too complex to be clearly understood by foremen and others directly responsible for expense items. Therefore, either innumerable approvals of miscellaneous
expenses must be made by management higher up, or an approximation of the results of some previous period or year must be depended upon as a control or measures of the operations or activities of the current period.^
These same authors go on to point out the value of
the predetermined cost over the historical cost, and have
stated that the predetermined cost was found to exist in
connection with the budgetary-control system of a number of
the organizations studied. 15 The authors have previously
been referenced as stating that one half of the organizations
studied had some type of a budgetary-control system.
In a subsequent paragraph, they have expressed their views
concerning the standard cost basis of cost controls
fieMdo wdietrhn mkannoawgienmge nwth,a th oiwtesv eprr,o duhacst hnaost bceosetn; siattisdemands,
instead, to know what it should cost. mAiccnoerdd i(negsltyi,m attehde hfiutsutroer)i caclo stc ohsatv ea ndl artghee lpyr egdiveetnerway
to the standard cost, which has been defined as a cost which should be obtained "under a given
Holden, Fish, and Smith, oj>. cit., p. 152.
^ibid.. p. 15*f.
Object Description
Description
| Title | An approach to management control by application of the principle of management by exception. - Page 28 |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 21 a historical basis rather than against the best known possible performance. Furthermore, they generally provide no adequate basis for delegation of responsibility and authority; frequently they do not give thorough coverage to all kinds of expense, but concentrate tions. Other technical fueaptounr etsh,e psruocdhu cast ipvreo -orpaetreas, burden centers, and machine rates, make them too complex to be clearly understood by foremen and others directly responsible for expense items. Therefore, either innumerable approvals of miscellaneous expenses must be made by management higher up, or an approximation of the results of some previous period or year must be depended upon as a control or measures of the operations or activities of the current period.^ These same authors go on to point out the value of the predetermined cost over the historical cost, and have stated that the predetermined cost was found to exist in connection with the budgetary-control system of a number of the organizations studied. 15 The authors have previously been referenced as stating that one half of the organizations studied had some type of a budgetary-control system. In a subsequent paragraph, they have expressed their views concerning the standard cost basis of cost controls fieMdo wdietrhn mkannoawgienmge nwth,a th oiwtesv eprr,o duhacst hnaost bceosetn; siattisdemands, instead, to know what it should cost. mAiccnoerdd i(negsltyi,m attehde hfiutsutroer)i caclo stc ohsatv ea ndl artghee lpyr egdiveetnerway to the standard cost, which has been defined as a cost which should be obtained "under a given Holden, Fish, and Smith, oj>. cit., p. 152. ^ibid.. p. 15*f. |
