1.         The formal management control system includes the shared values, loyalties, and mutual commitments among members of the organization.

• True
• False

1.         Management control systems is designed only for top level managers and is not applicable to line managers.

• True
• False

1.         Management control systems utilize information gathered within a company and from external sources so as to aid management with their planning and control decision making.

• True
• False

1.         The human resources systems is a part of the formal management control systems of an organization

• True
• False

1.         The management accounting system is an informal management control system which provide information about the firm's costs, revenues, and income.

• True
• False

1.         The formal management control system includes shared values, loyalties, and mutual commitments among members of the company, company culture, and norms about acceptable behaviour for managers and other employees.

• True
• False

1.         Effort refers to physical exertion, such as a worker producing at a faster rate, but excludes non-physical aspects like acumen and diligence of a worker.

• True
• False

1.         An organization should design its management control system independently of its strategies, so that the system is not affected by change of strategies in future.

• True
• False

1.         Goal congruence exists when individuals work toward achieving one goal, and groups work toward achieving a different goal.

• True
• False

1.     Management control systems should be designed to support the organizational responsibilities of individual managers.

• True
• False