| Term | Definition |
|---|
| Belief Systems | Lever of control that articulates the mission, purpose, norms of behavior, and core values of a company intended to inspire managers and other employees to do their best |
| Boundary systems | Lever of controls that describes standards of behavior and codes of conduct expected of all employees, especially actions that are off-limits |
| Current Cost | Asset measure based on the cost of purchasing an asset today identical to the one currently held, or the cost of purchasing an asset that provides services like the one currently held if an identical asset cannot be purchased |
| Diagnostic Control Systems | Level of control that monitors critical performance variables that help managers track progress toward achieving a company's strategic goals. Managers are held accountable for meeting these goals. |
| Economic Value Added | After-tax operating income minus the after-tax weighted average cost of capital multiplied by total assets minus current liabilities. |
| Imputed Costs | Costs recognized in particular situations but not incorporated in financial accounting records. |
| Interactive Control Systems | Formal information systems that managers use to focus organization attention and learning on key strategic issues. |
| Investment | Resources or assets used to generate income. |
| Moral Hazard | Describes situations is which an employee prefers to exert less effort (or to report distorted information) desired by the owner because the employee's effort (or validity of the reported information) cannot be accurately monitored and enforced. |
| Residual Income (RI) | Accounting measure of income minus a dollar amount for required return on an accounting measure of investment. |
| Return on Investment (ROI) | An accounting measure of income divided by an accounting measure of investment. |
Combine with other sets
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