APPLICATION OF CONCEPT
AND NATURE OF
DIFFERENT CONTROL
METHODS AND
TECHNIQUES IN
ACCOUNTING AND
Controlling
is a management function involves
ensuring the work performance of
the organization’s members are
aligned with the organization’s
values and standards through
monitoring, comparing, and
correcting their actions.
Controlling Methods
are techniques used for measuring an
organization’s financial stability, efficiency,
effectiveness, production output, and
organization members’ attitude and
morale.
CONTROL METHODS AND SYSTEM
METHODS OF CONTROL
• Quantitative Methods • Non- Quantitative
Methods
• Quantitative Methods
-It makes use of data and different quantitative tools for
monitoring and controlling production output.
• Non- Quantitative
Methods
-These refer to the overall control performance instead of only those
of specific organizational processes.
-These methods use tools such as inspections, reports, direct
supervision, and on-the spot-checking and performance evaluation
or counseling to accomplish goals.
• Quantitative Methods
Two common quantitative tools:
1. Budget
2. Audits
1. Budget
It is considered the best-known control device. Budgets and control
are, in fact, synonymous. An organization’s budget is an expression in
financial terms of a plan for meeting the organization’s goals for a
specific period. A budget is an instrument of planning, management,
and control.
Budgets are used in two (2) ways: a. To establish facts that must be
taken into account during planning; b. To prepare a description and
financial information to be used by the chain of command to request
and manage funds.
2. Audits
Internal auditing involves the independent review and
evaluation of the organization’s non-tactical operations, such
as accounting and finances.
As a management tool, audit measures and evaluates the
effectiveness of management controls.
• Non-Quantitative Methods
Types:
1. FEEDFORWARD CONTROL
- A control method that prevents problems in a firm because
managerial
action is taken before the actual problem occurs.
2. CONCURRENT CONTROL
-It is a method that takes place while work activity is happening.
Example: Direct supervision or management by walking around.
3. FEEDBACK CONTROL
-It is a control that takes place after the occurrence of the activity. It is
disadvantageous because, by the time the manager receives the
information, the problem had already occurred.
• Non-Quantitative Methods
Types:
4. EMPLOYEE DISCIPLINE
-It is a control challenge for managers, for enforcing discipline in the
workplace is not easy.
-This includes workplace privacy, employee theft, and workplace
violence, among others, are some of the concerns in employee
discipline.
-From simple monitoring of employees’ computer usage at work to
protecting employees at work from psychologically unstable workers
who may have hidden desires to harm them, managers need discipline
control to ensure that tasks can be efficiently and effectively carried
out as planned.
• Non-Quantitative Methods
Types:
5. PROJECT MANAGEMENT
-It ensures that the task of getting a project’s activities done on
time, within the budget, and according to specifications, is
successfully carried out.
-Project Managers need technical and interpersonal skills to
control the implementation of the project efficiently and
efficiently.
APPLICATION OF MANAGEMENT
CONTROL IN ACCOUNTING AND
MARKETING CONCEPTS AND
TECHNIQUES