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QUESTION ONE a) Briefly discuss the four levers of control coined by Robert Simon? b) Managers often cite enormous pressure from top management to make
QUESTION ONE a) Briefly discuss the four levers of control coined by Robert Simon? b) Managers often cite enormous pressure from top management to make budgets that are unrealistic and for not adhering to legal or ethical accounting policies and procedures. How can the levers of control be used by organizations to overcome the _challenge of managers behaving unethically and adhere to legal and ethical accounting policies and procedures QUESTION TWO A large organisation with a well developed cost centre system, is considering the introduction of profit centres and (or) investment centres through the organisation, where appropriate. As management accountant, you will be providing technical advice and assistance for the proposed scheme. You are required: (a) To describe the main characteristics and objectives of the profit centres and investment centres; (b) To explain what conditions are necessary for the successful introduction of such centres; (c) To describe the main behavioural and control consequences that may arise if such centres are introduced. (d) To compare two performance appraisal measures that might be used if investment centres are introduced
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