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Goal Congruence - Behavioural Aspects of Standards
A perfect variance analysis and standard costing system must enhance goal congruence between as:
i. The goal of individual employees and the individual departments and
ii. The goals of the organization as an entire.
This would prevent a conflict of goals and the resulting sub-optimality. Conversely, total goal congruence is an ideal that is difficult to achieve completely and in practice, some reasonable level of sub-optimality is 'endured' in the organization. Goal congruence is enhanced while the employees to be evaluated utilizing standard costing system are included in setting the standards and in evaluating their performance. It participative management style is via far preferred to the traditional autocratic system such overemphasized authority and hierarchy.
advanced sums
in what ways does specific order costing differ from process costing
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problem 16-53 solution
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