Advanced management accounting Essay Example | Topics and Well Written Essays - 1500 words - 1

Advanced management accounting - Essay Example This will help the management in adopting corrective measure. This also includes administrative control which involves laws, regulations, norms, standard procedures. The second category deals with personal control, social control and behavioural control. Management control system serves as language and helps in communication system. Management control system also plays the role of transfer pricing for performing the strategic functions of the organization. Management control system can be effectively designed and implemented if there is dedication and commitment in the top level executives (Giraud, Zarlowski, Saulpic, Lorain, Fourcade and Morales, 2007). The less involvement, less initiative and also less interest in the activities among the top level executives will lead the top management in diverting its attention to other areas, which is not suitable for the smooth running of the organization. The Organization’s which completes there project in time establishes its budget and fulfilment of the maintenance of quality is considered as a successful company or organization (NOEVERMAN, 2007). Therefore if the organization is not able to complete its project in time can lead or act as a challenge for delivery of project in time. Lack of cross – functional communication Effective communication is a main function for exchanging of information between the people in the organization. It serves as a source for exchanging of ideas (Arsh, 2010). The changes that are adopted in the organization have to be clearly communicated among the persons in the organization and also provide the rationale for the changes undergone by the organization (Neale & McElroy, 2004). The organization must clearly define the benefits that the organization expects from the project and the challenges or obstacles towards receiving those benefits (Malmi &