Managerial Information Systems for Planning And Control

Cover Managerial Information Systems for Planning And Control
Managerial Information Systems for Planning And Control
Zenon S Zannetos
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It will also check on the alternative standards to reassess their applicability in the light of the new information provided by operations. There is nothing to guarantee, however, that within the department there are no significant differences in the performance of groups which in the aggregate are - 31 - canceled out. This is very relevant information for managers. It is also important to observe how the performance of the sub- units within groups changes over time (accounting period by accoun...ting period). So we apply statistical analysis of variance to the output of the accounting process, ^ In addition to a comparison of the performance (a) among various subunits within a group or department for an account- ing period (week, month, etc. ) and (b) of the various subunits over several accounting periods, the statistical analysis of variance provides us with tools to establish elementary cause and effect relationships. And this because part of this analysis is the explanation of the components of the total statistical variance, that is to say, an explanation of how much of the variability can be explained by the various causal factors.

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