Modern Management Control Systems : Text and Cases

by Merchant, Kenneth

• ISBN13: 9780135541555
• ISBN10: 0135541557
• Format: Hardcover
• Copyright: 1997-09-01
• Publisher: Prentice Hall

Summary

Appropriate for graduate and advanced undergraduate business courses that focus on management control systems. Prerequisite: management accounting. Uses the case study method to teach management control systems. Anyone interested in business management can benefit from the decision-making models and case analyses in this text.

Table of Contents

Preface	xi
SECTION I: THE CONTROL FUNCTION OF MANAGEMENT	1	(26)
CHAPTER 1 Management and Control	1	(26)
Leo's Four-Plex Theater	18	(1)
Wong's Pharmacy	19	(1)
33 Dunster Street	19	(8)
SECTION II: CONTROL ALTERNATIVES AND THEIR EFFECTS	27	(274)
CHAPTER 2 Action Controls	27	(42)
Macon Prestressed Concrete Company, Inc. (A.B.C Condensed)	36	(19)
Rohm and Haas (A)	55	(14)
CHAPTER 3 Results Controls	69	(52)
Armco, Inc.: Midwestern Steel Division	82	(14)
Merck & Co. Inc. (A)	96	(5)
Merck & Co. Inc. (B)	101	(6)
Roy Rogers Restaurants	107	(14)
CHAPTER 4 Personnel and Cultural Controls	121	(34)
Alcon Laboratories, Inc. (A)	134	(10)
Hewitt Associates	144	(11)
CHAPTER 5 Control Tightness (or Looseness)	155	(57)
Controls at the Sands Hotel and Casino	169	(20)
The Lincoln Electric Company	189	(23)
CHAPTER 6 Direct and Indirect Control System Costs	212	(38)
Hyatt Hill Health Center	228	(6)
Glamour Fragrances, Inc.	234	(9)
Disctech Inc.	243	(7)
CHAPTER 7 Designing and Evaluating Control Systems	250	(51)
Rabobank Nederland	263	(12)
Assuming Control at Altex Aviation (A)	275	(26)
SECTION III: FINANCIAL RESULTS CONTROL SYSTEMS	301	(153)
CHAPTER 8 Financial Responsibility Centers	301	(31)
Shuman Automobiles Inc.	311	(4)
Pinnacle Mutual Life Insurance Company	315	(17)
CHAPTER 9 Planning and Budgeting Systems	332	(50)
G. A. Kleissler Co.	343	(16)
Codman & Shurtleff, Inc.: Planning and Control System	359	(13)
Promet Berhad	372	(10)
CHAPTER 10 Financial Performance Targets	382	(43)
Citibank Indonesia	396	(7)
HCC Industries	403	(11)
Provigo Inc.	414	(11)
CHAPTER 11 Performance-Dependent Rewards (and Punishments)	425	(29)
Loctite Company de Mexico, S.A. de C.V.	437	(7)
GTE Corporation: Long-Term Incentive Plan	444	(10)
SECTION IV: COMMON PROBLEM AREAS IN FINANCIAL-RESULTS CONTROL	454	(185)
CHAPTER 12 Accounting Performance Measures and the Myopia Problem	454	(88)
ES, Inc.	472	(10)
Natomas North America	482	(14)
Wertheimer-Betz, A. G.	496	(13)
Duckworth Industries, Inc.--Incentive Compensation Programs	509	(19)
Chemical Bank: Implementing the Balanced Scorecard	528	(14)
CHAPTER 13 Limitations of ROI-Type Performance Measures	542	(29)
Pullen Lumber Company	551	(4)
American Standard Inc.--The Inflation Accounting System	555	(16)
CHAPTER 14 Using Financial Results Controls in the Presence of Uncontrollable Factors	571	(43)
McMullen and Worby (A) (Abridged)	585	(4)
Hoffman Discount Drugs, Inc.	589	(7)
Polysar Limited	596	(10)
Formosa Plastics Group	606	(8)
CHAPTER 15 The Transfer Pricing Problem	614	(25)
Del Norte Paper Company (A)	624	(3)
Chemical Bank: Allocation of Profits	627	(12)
SECTION V: IMPORTANT CONTROL ROLES AND ETHICAL ISSUES	639	(88)
CHAPTER 16 Controllers, Auditors, and Boards of Directors	639	(58)
ITT Corporation: Control of the Controllership Function. 1977 vs. 1991	652	(16)
Scovill Inc.: NuTone Housing Group	668	(10)
Desktop Solutions, Inc. (A): Audit of the St. Louis Branch	678	(8)
Desktop Solutions, Inc. (B): Audit of Operations Group Systems	686	(3)
Vector Aeromotive Corporation	689	(8)
CHAPTER 17 Management Control-Related Ethical Issues and Analyses	697	(30)
Two Budget Targets	713	(1)
Conservative Accounting in the General Products Division	714	(1)
Education Food Services at Central Maine State University	715	(2)
The Incident at Waco Manufacturing	717	(1)
Don Russell: Experiences of a Controller/CFO	718	(9)
SECTION VI: SIGNIFICANT SITUATIONAL INFLUENCES ON MANAGEMENT CONTROL SYSTEMS	727
CHAPTER 18 Influences of Uncertainty/Programmability, Diversification Strategy, and Business Strategy on MCSs	727	(41)
Monsanto Company	736	(13)
Graves Industries, Inc.	749	(9)
Toyota Motor Sales, U.S.A., Inc.	758	(10)
CHAPTER 19 Control in International and Multinational Corporations	768	(47)
Shell Brasil S.A.: Performance Evaluation in the Oil Products Division	781	(12)
Ciba-Geigy (A): Information and Control System	793	(16)
Teco Electric & Machinery Co. Ltd.	809	(6)
CHAPTER 20 Control in Not-for-Profit Organizations	815
City of Yorba Linda, California	823	(11)
Waikerie Co-Operative Producers Ltd.	834	(8)
University of Southern California: Revenue Center Management System	842
INDEX	1-1