Authors: Al Bento, Lourdes Ferreira White
Addresses: Merrick School of Business, University of Baltimore, Baltimore, MD 21201-5779, USA. ' Merrick School of Business, University of Baltimore, Baltimore, MD 21201-5779, USA
Abstract: We investigate the degree of congruence between preferred and actual levels of ten management control system (MCS) practices in the areas of budgeting, performance evaluation, and compensation. Survey results from responsibility centre managers indicate significant disagreements between preferred and actual levels for most MCS practices. Congruence states of deprivation, satisfaction, and saturation exist for eight MCS practices, and deprivation is the most frequent state for seven MCS practices. Congruence is significantly correlated with performance, and eight MCS congruence variables are markedly related to the congruence variables found to have performance effects.
Keywords: congruence; management control; managerial preferences; budgeting; performance evaluation; compensation.
International Journal of Accounting, Auditing and Performance Evaluation, 2006 Vol.3 No.3, pp.304 - 319
Available online: 01 Aug 2006 *Full-text access for editors Access for subscribers Purchase this article Comment on this article