Several assumptions are commonly made by accountants when preparing or interpreting management accounting information.

Required: Explain why each of the following five assumptions might be made by accountants when designing a management control system, and set out in each case also any arguments, which, in your view, raise legitimate doubts about their validity:

a)Performance targets should be reasonably attainable but not too loose

. b)Participation by managers in the target setting process leads to better performance.

c)Management by exception is the most effective system of routine system of routine reporting.

d)A managers performance reports should reports should exclude all matters, which are not completely under his control.

e)The style of managerial use of management control information for performance evaluation is important.