This chapters considers the information needs of an organisation, particularly in respect of control systems to ensure that the organisation maintains performance.
Information needs for different levels of decision making
The different levels of decision making were discussed in the previous chapter. The information needs of the decision makers will be different and depend on the type of decision.
Strategic planning
The information needed at this level is likely to be more external information and is likely to be more forecasts of the future.
Management control / Tactical planning
At this level there will be a need for both external and internal information. The focus is also more likely to be on current information.
Operational control
Here the information needs will almost exclusively be internal, and will be past and current information.
One may suggest that the arrow between ‘standards’ to ‘comparator’ should flow both ways – the feedback from the ‘comparator’ may be necessary to adjust the ‘standard’.
Thank you
hello sir, i hope you are doing great. Just wanted to make sure whether the question ” the motherhelp company” is related to this chapter as the topics covered in your video doesnt exist in any part of the question.Thanks
I think so. The Motherhelp Company (TMC) is too versatile and seems more suitable for Chapter 2 Strategic Management Accounting, where are covered various approaches and strategies for performance improvement like Gap analysis, Ansoff’s matrix. Also it covers Government influences from Chapter t External influences.
However this is a very useful and good question.