Three legged stool

6 important questions on Three legged stool

Design issues partition decision rights?

- Board of Directors has ultimate authority
- Linking knowledge and decision rights

4 steps in the decision process are?

1. initiation (management)
2. Ratification (control)
3. Implementation (management)
4. Monitoring (control)

Name one accounting measure:

profitability/productivity measures like profit/loss, return on investment, economic value added, output and input
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True/falsh: accounting data is useful for decision making

Falsh: accounting data may aggregate so man individual transactions so that they are not useful for decision making. 
BUT: accounting data is useful for control by averaging out random fluctuations.

Examples of non accounting performance measures?

  • customer satisfaction
  • on time delivery
  • brand value
  • innovation

Non accounting performance measures is good information for decision making?

True but more timely

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