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After reading this chapter, you should be able to:
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LO 1
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Explain the role of a management control system.
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LO 2
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Identify the advantages and disadvantages of decentralization.
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LO 3
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Describe and explain the basic framework for management control systems.
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LO 4
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Explain the relation between organization structure and responsibility centers.
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LO 5
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Understand how managers evaluate performance.
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LO 6
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Analyze the effect of dual-versus single-rate allocation systems.
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LO 7
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Understand the potential link between incentives and illegal or unethical behavior.
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LO 8
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Understand how internal controls can help protect assets.
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