Private organisations tend to have smoother management control process whereas public organisations experience more turbulence, conflicts and interruptions. Many scholars attribute these differences to the roles and purpose of private and public organisations in the society. Private organisations produce and sell products to consumers in the markets with objective of creating shareholders’ wealth. On the other hand, public organisations, such as state health centers and public schools undertake their operations for public interests. The distinct roles mean that there are diverse kinds of expectations and accountability that may can call for distinctive management control and decision-making processes (Ring & Perry. 1985). The problem of exercising management control in private sector versus public sector The contextual influence in the exercise of management control arises from the role of an organisation in the society. Whereas private organisations are means for creating shareholders’ wealth, public organisations are instruments of public policy. The functions of each sector dictate the governance and leadership arrangements that are necessary to exercise management control for different diverse types of owners and shareholders. The approach to governance adopted in each sector subject general managers in each sector to different demands and expectations, which have far-reaching impact on exercise of management control. The role of each sector dictate ways of dealing with clients and users of services or goods offered in different ways, and this may also influence how management control is exercised. Public organisations are constrained in ways that limit how they exercise their management control and strategic choices being made. In most cases, discussions of how management control should be pursued in public organisations are subject to public disclosure. The government passes legislative mandates which tend t affect budgets and budgeting process in a public organisation. As cited by Ring and Perry (1985), managers or leaders of public organisations are required to conform to budgets and legislative mandates passed by the state. As such, this is likely to limit the amount of money available for research on how to exercise management effectively. These mandates may even limit managers of public corporations from spending money on data collection and research thus influencing decision making process negatively. Management team of most public corporations must report to oversight committees, whose occupants are often political appointees, who are prone to leaking organisation’s undertakings and progress. This influences planning and management process in a negative way. These influences make management control problematic in public corporations than in for-profit organisations (Nutt, 2005). The external environment influences any organisation. Some of the attributes of external environment include cooperation, competition, political influence, cooperation and data availability. Private organisations can assess market situations through consumer buying behavior thereby enabling them to effectively manage their actions. Public organisations lack markets which can be source of revenue. As such, they depend on funds from oversight bodies that have tendency of setting reimbursement rules for the products or services offered by a public organisa
Finance and Accounting: Management Accounting Name: Course Name: Instructor: Date: Question 2: Compare and contrast the problem of exercising management control in for-profit organisations (private sector) versus non-profit organisation (public sector) Proper management is paramount to the success of any organisation whether it is a public or private organisation…
Financial accounting mainly focus on summaries past financial dealings which are reported periodically in contrast, management accounting evaluate past, present and future information which are reported continually to be used in making appropriate decisions.
6 210000 95676 7 0.3996 210000 83916 8 0.3506 210000 73626 9 0.3075 210000 64575 10 00.2697 210000 56637 11 0.2366 210000 49686 12 0.2076 240000 49824 Total cash inflows 270038 NPV=270038-630000 =359962 Smart electronics should not accept the device. The acceptance of the device would imply that the company would not get any financial benefit from it because it will not be of monetary help.
The main purpose of the operating statements of income statement is to help the companies to evaluate their performance on the basis of sales and expenses. The income statement reflects strongly upon the profit and loss occurred in the company according to the sales and expenses of the firm.
Since the product is being produced by the company for the first time, therefore, its future projections have been carried out in order to check whether the product is going to provide better financial results to the organization. Various kinds of budgets and projected financial statements have been projected through utilizing cost and management accounting techniques in order to provide a basis to the owners of the business regarding the financial progress of the product in the first year of business operations.
Cybernetics takes as its area the configuration or revelation and requisition of standards of regulation and conveyance. Cybernetics treats not things however courses of acting. It doesn't ask "what is this thing?" however "what does it do?" and "what would it be able to do?
A list of grant recipients is required to be available, for example, in an appendix to the report, on request or through the Internet," (Department of the Prime Minister and Cabinet, op. cit., page 14).
Grants associated with income, as in the case of the subsidiary receiving the grant to educate its students, are sometimes represented as a credit in the income and expenditure statement.
ements and the information provided by the company, it is evident that the company is producing and selling units less than its budgeted figures show. The variance analysis is the most commonly used tool for evaluating the performance of a business by comparing its costs and