Controlling : Concepts of Management Control, Controllership, and Ratios

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.

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.