=+13. A group of senior managers from the Exacta Electronics Company had recently attended a seminar on the application of organizational theory to management control systems design.

They meet a week later to discuss whether changes should be made in their own management control system. Part of the discussion was as follows:

Accountant: I quite agree that we need a better system. What we have was quite adequate when we were a small concern, supplying electrical parts to large manufacturers; but now we have grown much larger and design our own sophisticated electronic products.