Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
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CONTROLLING ORGANIZATIONAL PERFORMANCE THROUGH PRODUCTIVITY AND QUALITY

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Types of Controls
A.  Controls can be classified according to their timing or place in the productive cycle.
1.  Feed forward control focuses on the regulation of inputs to ensure that they meet the standards necessary for the transformation process.
a.  The emphasis is upon preventing problems.
b.  Other names for feed forward control are “preliminary control,” “pre-control,”
“preventative control” and “steering control.”
 
2.  Concurrent control involves the regulation of ongoing activities that are part of the transformation process to ensure that conform to organizational standards.
a.  Checkpoints are in place to determine whether to continue the process, take corrective action, or stop worked altogether.
b.  Other names for concurrent control are “screening” and “yes-no control.”
c.  This type of control is not appropriate for work that requires creativity or innovation.
 
3.  Feedback control is regulation exercised after a product or service has been completed in order to ensure that the final output meets organizational standards and goals.
a.  Feedback control is used when feed forward and concurrent controls are not feasible or are too costly.
b.  Feedback control serves a number of functions:
1)  To serve as a final means to check for deviations not detected earlier
2)  To provide information that will facilitate the planning process
3)  To provide information regarding employee performance
c.  Other names for feedback control are “post action control” or “output control.”

B.  Multiple control systems are systems that use two or more of the feed forward, concurrent, and feedback control processes and involve several strategic control points.
1.  Multiple control systems develop because of the need to control various aspects of a productive cycle, including inputs, transformation, and outputs.
2.  Computer software companies provide examples of processes complex enough to require multiple controls.
C.  The degree to which human discretion is part of a control process determines whether it is cybernetic or non-cybernetic.
1.  A cybernetic control system is a self-regulated control system that, once it is put into operation, can automatically monitor the situation and take corrective action when necessary,
e.g., a heating system or some computerized inventory systems.
2.  A non-cybernetic control system is a control system that relies on human discretion as a basic part of its process.

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