Management Control Systems

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2.0 Credits

This CPE course looks at management control systems and their characteristics. It examines Systems theory and organizational work design. It addresses the need for management control systems to adapt to changing environments and methods used for those purposes. It explains the process of transfer pricing used in cases of inter-divisional trading and its objectives. It discusses the effects of international transfer pricing, differing tax rates, cash flow, and currency management, and provides case studies based on real-world events.


  • Identify appropriate performance measures considering the impact of transfer pricing and taxation, rewards systems and incentives.
  • Identify risks of performance measurement and select the appropriate recommended solutions for the risks of dysfunctional behavior arising from the associated models of performance measurement.
  • Distinguish traditional from modern manufacturing.

Major Topics

  • Business unit performance and appraisal, including transfer pricing and taxation, reward systems and incentives
  • Non-financial measures and their interaction with financial measures
  • Risks of performance measurement, including the Balanced Scorecard
  • Lean systems
  • Cost of quality
  • Dysfunctional behavior associated with measures of control and direction
  • Application of control systems and related theory to the design of management accounting control systems and information systems in general
  • Control systems within functional areas of a business including human resources, sales, purchases, treasury, distribution, and IT
  • Identification of appropriate responsibility and control centers within the organization
  • Performance target setting
  • Performance appraisal and feedback
  • Cost of quality applied to the management accounting function and "getting things right first time"
  • Responses to risks in control systems for management

Designed For

CGMA exam candidates Management accountants wanting to develop skills in governance and risk management
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