Question 1
Briefly explain each of the four levels of control. Why does a company need to implement more than a diagnostic control system?
Question 2
"Levers of control," in addition to a diagnostic control system, are needed in an organization because ________.
◦ diagnostic controls have been found to lead to poor financial performance
◦ diagnostic controls have no place in a balanced scorecard system
◦ pressure to perform on diagnostic controls may lead to unethical behavior
◦ they are mandated by the Financial Accounting Standards Board