Planning Systems on Management Control Systems

Question: Discuss about the Planning Systems on Management Control Systems. Answer: Introduction: The article herein presents the brief understanding of management control system practised in the mature, revival and growth firms. The article suggests the significance of organisational life cycle stage and service process type as this issue has been not addressed in a detailed manner. The results derived from testing the relationship between MCS and organisational life cycle stage as well as service process types through the hypothesis for which a cross-sectional survey was conducted among 105 firms operating n several industries on different life cycle stages (Kallunki, Laitinen, and Silvola, 2011). It has been seen that the characteristics of the firm reported in the life cycle literature affect the use of advanced cost-accounting systems differing across different stages of life cycle. Strength of the article A distinctive characteristic of the phases of the life cycle and its emphasis on management company structure has been clearly stated highlighting the strong basis of conducting the article (Su, Baird and Schoch, 2015). The test has been conducting using cross-sectional survey that proclaims interpretation on the ground of evidence provided through such survey. Weaknesses of the article Assumptions have been drawn about the distinct stages of life cycle, which may be not true and valid for all cases. The cross-sectional test has presented data which prevents any further tests for causality (Schoute, 2011). The more complicated relationship can be captured in the proposed direct relationship. The article comprises of variables, which are undertaken to keep it exploratory, but the ideas put forth may warrant further investigation. References Kallunki, J.P., Laitinen, E.K. and Silvola, H., 2011. Impact of enterprise resource planning systems on management control systems and firm performance.International Journal of Accounting Information Systems.12(1). pp.20-39. Schoute, M., 2011. The relationship between product diversity, usage of advanced manufacturing technologies and activity-based costing adoption. The British Accounting Review.43(2). pp.120-134. Su, S., Baird, K. and Schoch, H., 2015. The moderating effect of organisational life cycle stages on the association between the interactive and diagnostic approaches to using controls with organisational performance.Management Accounting Research.26. pp.40-53.