Organizational aspects of management control system implementation

Abstract

The introduction of management control systems is caused not only by production needs, but also by the desire of owners to monitor income and expenses and have a complete picture of the real financial situation in real mode for the planning and management decision-making process. Production should function as a well-established mechanism, and this requires a permanent system that allows you to track information about business transactions, product costs, production costs and profitability of production as a whole. Also, the need to obtain up-to-date information on costs and revenues is due to the increase in overhead costs (distribution and marketing costs), which have a significant impact on economic performance. This is especially true in the case of large-scale enterprises and foreign markets, where total selling costs far exceed similar production costs.