THEORIES Buzzwords - Goal Congruence - Silo Effect - Span of Attention - Dysfunctional Decision Making - Leading and Lagging Indicators Control Systems Key Influences on the Nature of the Management Accounting and Control System - Strategy - Culture and Beliefs - Structure - External Environment - Size - Technology Key Influences on Managing the Contemporary Organisation - Incentives - Risk - Sustainability  Structure Influences on Structural Choices - Strategy - Need for Market Orientation - Need for Specialisation - External Environment - Costs (Including Opportunity Costs) - Size - Culture and Belief Systems Common Forms of Organisation Structure - Functional - Specialisation, not responsiveness - Divisional - Responsiveness, not specialisation - Matrix - Hybrid Responsibility Centres - Cost Centres - Revenue Centres - Profit Centres - Investment Centres  Span of Attention (What Takes the Manager's Attention?) - Work-unit Design - The work-unit to which the manager belongs - Span of Control - People and functions under the manager's control - Span of Accountability - Performance measures for which the manager is held accountable Sub-unit Performance Criteria for a Diagnostic System - Set Performance Expectations - Measure Actual Performance - Use Variances to Diagnose Performance Problems - Bring Performance In Line with Expectations Principal Reasons for Using Control Tools Diagnostically - Implement Strategy Effectively - Conserve Scarce Management Resources Common Measures at the Divisional Level - Return on Investment (ROI) - Residual Income (RI) - Economic Value Added (EVA)  Internal Transfers Transfer Pricing Decisions - Buy/Sell Internally or Externally - At What Price? Determining Transfer Prices - Cost-based Transfer Prices - Market-based Transfer Prices - Negotiated Transfer Prices - Dual-prices Factors that Affect Transfer Pricing Policy - Organisational Structure - Decentralised Decision-making - Organisational Transfer Pricing Method - Organisational Policy on Sourcing - Taking an Organisation Perspective vs. a Divisional Perspective