Controlling: Concepts of Management Control, Controllership, and Ratios

by Thomas Reichmann

Overview

In times of globalization, competition and economic and technological progress, the permanent improvement of the planning, coordination and control system of companies is a major task of Controlling. This book presents a concise concept for the design of a ratio and management report system for each functional part of the company. It addresses as well practitioners who seek decision support in their day-to-day business, as scientists and students who want to obtain information about the state of the art of Management Control and Controllership.

Product Details

ISBN-13:	9783642645464
Publisher:	Springer Berlin Heidelberg
Publication date:	10/01/2011
Edition description:	Softcover reprint of the original 1st ed. 1997
Pages:	338
Product dimensions:	6.10(w) x 9.25(h) x 0.03(d)

Table of Contents

A Fundamentals of the Controlling concept.- 1 The evolution of the term Controlling.- 2 The Controlling structure.- 2.1 Controlling targets.- 2.2 Controlling tasks.- 2.3 Controlling concept.- 2.3.1 Controlling concept and the relation to decisions.- 2.3.2 The Controlling concept and the supply with information.- 2.4 Controlling system.- 2.5 Controlling applications.- 2.6 Controlling institution.- B Basic elements of ratio systems as a Controlling tool.- 1 Systems related to targets.- 2 Fundamentals of model design.- 2.1 Description models and ratio concepts.- 2.2 Explanation models and ratio concepts.- 2.3 Decision models and ratio systems.- 2.4 The interpretation of ratio systems against the background of managerial models.- C The RL ratio system.- 1 Fundamentals of the RL ratio system.- 2 The two components of the RL ratio system: the RL Controlling-ratio system and RL balance sheet-ratio system.- D IT-supported Controlling.- 1 Demands on an IT-supported Executive Information System.- 1.1 Demands on the supply with basic data and their management.- 1.2 Demands on the analysis applications.- 2 Prospects of the further development of EIS.- E Logistics Controlling.- 1 Tasks of Logistics Controlling.- 2 Instruments of Logistic Controlling.- 2.1 Materials requirement planning (MRP).- 2.2 Logistics cost and performance costing.- 3 Using Logistics Controlling for efficiency control and preparation of decisions.- F Cost and Profit Controlling.- 1 Tasks of the Cost and Profit Controlling.- 1.1 The necessity of adapting to changing market situations.- 1.2 The regular profit and efficiency control.- 2 Instruments of Cost and Profit Controlling.- 2.1 The turnover planning.- 2.1.1 The product- and product group-related turnover planning.- 2.1.1.1 The selection of turnover influencing factors by correlation analysis.- 2.1.1.2 The determination of interdependencies as regards time within the framework of correlation analysis.- 2.1.1.3 The analysis of functional interdependencies between the turnover and turnover-determining factors.- 2.1.1.4 The derivation of prognosis turnovers.- 2.1.1.5 The determination of average deviations of prognosis.- 2.1.2 The time-dependent turnover plan.- 2.2 The cost planning.- 2.2.1 Pre-requisites for the planning of decision-relevant cost.- 2.2.1.1 The system of internal detail plans as a relevant information basis for cost planning.- 2.2.1.2 The cost accounting system as an instrument for information processing within cost planning.- 2.2.1.2.1 The term “decision-relevant cost accounting”.- 2.2.1.2.2 The system of full costing as a basis of cost planning in a Controlling system.- 2.2.1.2.3 The system of direct costing as a basis of cost planning in the Controlling system.- 2.2.1.2.4 The standard direct costing as basis of cost planning in the Controlling system.- 2.2.1.2.5 The relative prime cost and contribution margin accounting as a basis of cost planning in the Controlling system.- 2.2.1.3 Preparing tasks for carrying out the cost planning.- 2.2.2 The planning of prime costs.- 2.2.3 The overheads planning.- 2.2.4 The time-dependently accumulated cost plan.- 2.3 The planning of profit.- 2.4 Break-even-point-analysis as an instrument of planning.- 2.4.1 The basic model of break-even-point-analysis.- 2.4.2 The possibilities of applying break-even-point-analysis within the framework of Controlling.- 2.5 The matrix of the manageable fixed costs as a planning instrument.- 2.5.1 The management of fixed costs regarding their factual structure.- 2.5.2 The management of fixed costs in their time-dependent structure.- 2.5.3 The management of fixed costs regarding their effect on the readiness to operate.- 3 Cost and Profit Controlling in the case of changing market conditions.- 3.1 Price reduction as a means of adaptation to changing market conditions.- 3.2 The adaptation of production and inventory management to a rhythmically changing sales course.- 3.2.1 Principle ideas for the solution of the adaptation problem when facing a changing sales course by inventory management.- 3.2.2 The adaptation of production and inventory management to a rhythmically changing sales course at given capacity.- 3.2.3 The adaptation of production and inventory management to a rhythmically changing sales course in the case of a variable capacity.- 3.3 The adaptation of the production and sales program to changing market conditions.- 3.3.1 The influence of sales quantities by product political measurements.- 3.3.2 The determination of the optimal production and sales program.- 3.3.3 The determination of relative price limits to maintain the optimal production and sales program.- 3.3.3.1 The determination of relative price limits of sales goods.- 3.3.3.2 The determination of relative price limits for procurement goods.- 3.4 Management of fixed cost as a means to adapt to changing market conditions.- 3.5 The temporary closure of production as a means of adaptation to changing market conditions.- G Investment Controlling.- 1 Tasks of Investment Controlling.- 1.1 Investment planning, investment realisation, and investment control.- 1.2 The individual tasks.- 1.2.1 Stimulation of new investments.- 1.2.2 Co-ordination of investment planning and investment volume.- 1.2.3 Preparation of decisions.- 1.2.4 Realisation control.- 1.2.5 Current control of investment analysis.- 2 Instruments of Investment Controlling.- 2.1 Objective-orientated system of investment planning and control.- 2.2 Value analysis as a systematic problem solution method.- 2.3 Concepts of investment analysis.- 2.4 Statistical methods of investment analysis.- 2.4.1 Cost and profit comparison.- 2.4.2 Machine hour rate analysis.- 2.4.3 Profitability comparison.- 2.4.4 Static comparison of amortisation.- 2.5 Dynamic methods of investment analysis.- 2.5.1 Net present value-, annuity-, and internal rate of return method.- 2.5.2 Dynamic amortisation comparison.- 2.5.3 Dynamic methods of investment analysis.- 2.5.3.1 Evaluation of the net present value-, annuity-, and internal rate of return-method.- 2.5.3.2 Improvement by application of the final valuemethod.- 2.5.3.3 Improvement of the interpretability by a special risk analysis (in the broader sense).- 2.5.3.4 Investment analysis by taking into account the effect caused by the taxes on income.- 2.6 Value analysis.- 3 Checking and standardisation of investment analysis data by Investment Controlling.- 3.1 Recording of data.- 3.2 Expected turnover.- 3.3 Planned degrees of employment.- 3.4 Current costs/payments.- 3.5 Imputed capital cost used in static methods.- 3.6 Internal interest rate.- 4 Principles of an Investment Controlling concept for the preparation of decisions.- 5 Concepts of investment control.- H Strategic Controlling.- 1 Tasks and targets of strategic management.- 2 Strategic Controlling.- 2.1 Differentiation between strategic and operational Controlling.- 2.2 Tasks of strategic Controlling.- 2.2.1 Strategic Controlling and strategic planning.- 2.2.2 Strategic control.- 2.3 Instruments of Strategic Controlling.- 2.3.1 Strategic informational need analysis.- 2.3.1.1 Method of critical success factors.- 2.3.1.2 Business Systems Planning.- 2.3.1.3 Key indicator system.- 2.3.2 GAP analysis.- 2.3.3 The concept of experience curves.- 2.3.4 Portfolio-Management.- 2.3.4.1 Development of strategic business units.- 2.3.4.2 Portfolio analysis.- 2.3.5 The product life cycle analysis.- 3 Strategic Cost and Profit Controlling.- 3.1 Cost structure management as a central Controlling task in a changed competition and company environment.- 3.2 Framework of a strategic Cost and Profit Controlling.- 3.3 Orientation of cost accounting towards competition strategies.- 3.4 Target Cost Management.- 3.4.1 Development of target cost management.- 3.4.2 Analysis of relevant target cost comparison objects.- 3.4.3 Determination of product-related target costs.- 3.4.4 Target cost splitting.- 3.4.4.1 The component method.- 3.4.4.2 The functions method.- 3.4.4.3 Cost type-related allocation of package target costs.- 3.4.4.4 Special problems of target cost splitting.- 3.4.5 Target cost management.- 3.4.6 Continuous target-performance analyses.- 3.5 The company value chain as a link to strategic cost management.- 3.6 The concept of activity based costing.- 3.6.1 Development and basics of activity based costing.- 3.6.2 Analysis and structuring of company activities.- 3.6.3 Activity based cost centre costing.- 3.6.4 Activity cost costing.- 3.6.5 Condensing of sub activities to main activities.- 3.6.6 Activity-orientated portfolio analysis as interface to strategic Controlling.- 3.6.7 The “Fixed-Cost-Management-Orientated Standard Costing” as integrative cost accounting approach.- 3.6.7.1 Implications on the statement of values in cost type costing.- 3.6.7.2 Requirements as regards a modified design of an (activity) cost centre costing.- 3.6.7.3 Requirements regarding the modified design of an (activity) cost estimating.- 3.6.7.4 The design of a “Fixed Cost Management and Activity-orientated Standard Cost Estimation”.- 3.7 Design of a strategic Controlling reporting.- 4 Strategic Marketing-Controlling.- 4.1 Objectives and tasks.- 4.2 Enlarged life-cycle-portfolio model.- 4.3 Possible analysis path of a strategic Marketing Controlling.- 4.4 Development of an strategic “early ’enlightenment’ information system”.- 5 Scenario analysis of turn around and back stop strategies as open system simulation (OSS).- 5.1 Scenario simulation as an instrument of strategic Controlling.- 5.2 Open system simulation when investments into a new hotel are planned.- 5.3 Open system simulation in the case of strategic inventory planning.- 5.4 Fixed-cost management in the context of scenario simulation.- References.- Keyword index.