‏257.00 ₪

Management Accounting and Control - Tools and Concepts in a Central European Context

‏257.00 ₪
ISBN13
9783527508211
יצא לאור ב
Weinheim
זמן אספקה
21 ימי עסקים
עמודים
350
פורמט
Paperback / softback
תאריך יציאה לאור
4 באוק׳ 2017
Management accounting has been the basic toolbox in business administration for decades. Today it is an integral part of all curricula in business education and no student can afford not to be familiar with its basic concepts and instruments.
Management accounting has been the basic toolbox in business administration for decades. Today it is an integral part of all curricula in business education and no student can afford not to be familiar with its basic concepts and instruments. At the same time, business in general, and management accounting in particular, is becoming more and more international. English clearly has evolved as the "lingua franca" of international business. Academics, students as well as practitioners exchange their views and ideas, discuss concepts and communicate with each other in English. This is certainly also true for management accounting and control. Management Accounting is becoming more and more international. ?Management Accounting and Control? is a new textbook in English covering concepts and instruments of management accounting at an introductory level (primarily at the Bachelor level, but also suited for general management and MBA courses due to a strong focus on practical relevance). This textbook covers all topics that are relevant in management accounting in business organizations that are typically covered in German and Central European Bachelor courses on management accounting and control. After a general introduction to the field of management accounting and control the book discusses cost management as an extension of cost accounting. Typical cost management instruments such as target costing, life cycle costing and process-based costing approaches are explained in detail. Differences between Anglo-American activity-based costing (ABC) and German process-based costing are highlighted. The book then turns to an extensive discussion of planning and budgeting tasks in management accounting with a strong focus on the practical application of the topic such as developing a budget in practice. Another chapter is dedicated to a comparison of traditional budgeting with modern /alternative budgeting approaches. A major part of the book is dedicated to the broad area of performance management. The relevance of financial statement information for performance management purposes is discussed in detail. In addition, the most widely spread financial performance indicators are illustrated using real-world examples. The book also includes detailed content on value-based management control concepts. In a consecutive chapter, performance measurement is linked with strategy while extensively discussing the Balanced Scorecard as a key tool in strategic performance management. The remaining parts of the book deal with management reporting as one of the main operative tasks in management accounting practice. The book closes with insight into new fields and developments that currently influence management accounting practices and research and promise to play an increasingly important role in the future.
מידע נוסף
עמודים 350
פורמט Paperback / softback
ISBN10 352750821X
יצא לאור ב Weinheim
תאריך יציאה לאור 4 באוק׳ 2017
תוכן עניינים Preface xiii CHAPTER 1 Introduction to Management Accounting and Control 1 The Concepts of Management, Accounting, and Control 2 A Definition of Management 2 A Definition of Accounting 3 A Definition of Control 4 Bringing it Together: Management Accounting and Management Control 5 Management Accounting 5 Management Control 6 The Role of a Controller in an Organization 9 Skill Set of a Controller 10 The Management Control Function in a Corporation 12 Management Accounting vs. Financial Accounting 14 Financial Accounting 14 Contrasting Management Accounting and Financial Accounting 15 Performance Measurement and Performance Reporting 17 An Example of Performance Reporting 17 Performance Measurement beyond Financials 19 Trends in Management Accounting and Control 20 Ethical Aspects of Management Accounting and Control 23 CHAPTER 2 Management Reporting 29 Information Needs in Business 30 What is "Information"? 31 Information Supply vs. Information Demand 32 Management Reporting as a Key Information Tool 34 Scope and Definition of Management Reporting 35 The Management Reporting Process 36 Management Reporting Dimensions 38 "What For?" - Management Reporting Purposes 40 "What?" - Content of Management Reports 42 Inductive Methods 42 Deductive Methods 43 Information Sources 44 "How?" - Preparing and Communicating Management Reports 46 Amount of Information 46 Order and Structure 47 Relationships between Pieces of Information 49 Presentation and Visualization 50 "When?" - Timing Issues in Management Reporting 50 Reporting Cycles 50 Duration of Report Preparation 51 Timeliness and Punctuality 52 "Who?" - Parties Involved in the Management Reporting Process 53 Emerging Trends in Management Reporting 54 Reporting Factories 54 Self-Reporting 55 Cooperative Reporting 56 CHAPTER 3 Managing Cost 61 Cost Management 62 Cost Accounting vs Cost Management 62 The Focus of Cost Management 63 Cost Management Tools 65 An Overview 65 Problems of Volume-Based Cost Allocation 65 Activity-Based Costing and Process-Based Costing 67 How Activity-Based Costing Works 67 How Process-Based Costing Works 70 Activity-Based Costing and Process-Based Costing - a Comparison 71 Process- and Activity-Based Management Control 73 Cost Reduction and Process Efficiency Improvements 74 Pricing and Product Mix 74 Product and Service Design 74 Planning and Budgeting 75 Target Costing 75 Determining the Cost Gap in Target Costing 76 The Target Costing Process 77 Splitting Target Cost into its Sub-Values 79 Target Cost Index and Target Cost Diagram 81 A Critical Reflection: When is Target Costing Appropriate? 82 Life Cycle Costing 83 Cost and Revenue Elements Across the Product Life Cycle 85 Contribution Margin Method of Life Cycle Costing 86 Discounting Method of Life Cycle Costing 88 A Critical Reflection: What Life Cycle Costing Can and Cannot Do 91 CHAPTER 4 Budgeting 97 Planning in Management Control 98 The Budgeting Cycle 100 Uses of Budgets 101 The Master Budget 102 Preparing an Operating Budget 104 The Revenue Budget 105 The Production Budget 106 The Direct Materials Budget 107 The Direct Labor Budget 108 The Manufacturing Overhead Budget 108 The Manufacturing Costs Per Unit 109 The Cost of Goods Sold Budget 110 The Non-Manufacturing Costs Budgets 111 The Budgeted Income Statement 112 Discussing the Operating Budget 113 Preparing a Financial Budget 114 The Cash Budget 114 Preparation of the Cash Budget 115 The Budgeted Cash Flow Statement 118 Discussing the Cash Budget and the Budgeted Cash Flow Statement 119 Motivational Aspects of Budgeting 121 Motivation Versus Planning 122 Top-Down versus Bottom-Up Budgeting 123 Budget Manipulation 125 Strengths and Weaknesses of Traditional Budgeting 126 The Strengths of Budgets 126 The Weaknesses of Budgets 127 CHAPTER 5 Alternative Approaches to Budgeting 133 Budgeting - Necessary Evil or Valuable Management Tool? 134 Overview of Alternative Budgeting Approaches 134 Approaches Complementing Traditional Budgeting 135 Incremental Budgeting 135 Setting Up a Zero-Based Budget 138 Zero-Based Budgeting Example 139 Activity-Based Budgeting 141 Activity-Based Budgeting Example 142 Improvement Approaches to Budgeting 144 Better Budgeting 144 Continuous Improvement ("Kaizen") Budgeting 146 Abolishing Budgets - The Beyond Budgeting Approach 147 CHAPTER 6 Performance Measurement - Financial Statements 153 The Importance of Performance Measurement 154 Measuring Financial Performance 156 Sources of Financial Information 156 The Balance Sheet 157 Five Major Elements of the Balance Sheet 158 Non-current Assets 159 Current Assets 162 Non-Current Liabilities 162 Current Liabilities 163 Owners' Equity 163 Market Values Versus Book Values 163 Important Balance Sheet Concepts 164 Total Assets 164 Financial Debt 165 Identifying Financial Debt 166 Net Debt 167 Net Working Capital 170 Capital Employed 172 The Income Statement 173 The Multi-Step Profit Cascade 176 Earnings Before Taxes (EBT) 177 Earnings Before Interest and Taxes (EBIT) 178 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) 179 The Statement of Cash Flows 180 Preparing a Statement of Cash Flows 182 Sources and Uses of Cash 182 Determining Cash Flow with the Indirect Method 183 Cash Flows from Operating Activities 184 Cash Flows from Investing Activities 186 Cash Flows from Financing Activities 187 Analyzing the Statement of Cash Flows 189 Change in Net Working Capital 191 CHAPTER 7 Performance Measurement - Key Performance Indicators 199 Performance Indicators 200 A Note of Caution 202 Financial Ratios 203 Profitability Ratios 205 Profit Margin 205 EBIT Margin (Return on Sales) 207 Gross Profit Margin 207 Return on Investment Ratios 208 Return on Equity (ROE) 209 Return on Assets (ROA) 209 Return on Capital Employed (ROCE) 210 A Note on the Time Dimension 211 Asset Management Ratios 213 Total Asset Turnover 213 Fixed Asset Turnover 214 Inventory Turnover 215 Days' Sales in Inventory (DSI) 215 Days Receivables Outstanding (DRO) 216 Days Payables Outstanding (DPO) 217 Cash Conversion Cycle 217 Days Working Capital (DWC) 218 A Comparison 220 Capital Structure and Financial Leverage Ratios 222 Total Debt Ratio 222 Debt-to-Equity Ratio 224 Equity Multiplier 224 Interest Coverage and EBITDA-to-interest Ratio 224 Net Debt-to-EBITDA 225 Financial Leverage 228 Calculating the Leverage Effect 230 Liquidity Ratios 231 Current Ratio 232 Quick Ratio 232 Cash Ratio 233 Systems of Performance Measures 233 The DuPont System 234 Non-Financial Performance Measures 237 Typical Performance Measures in Logistics 237 Delivery Reliability 237 Supply Chain Cycle Time 238 Replacement Time 238 Typical Performance Measures in Human Resource Management 238 Employee Satisfaction 239 Absenteeism Rate 239 Staff Fluctuation Rate 239 Typical Performance Measures in Manufacturing 240 Productivity 240 Capacity Utilization 240 Reject Rate 241 Throughput Time 241 Typical Performance Measures in Marketing 241 Customer Churn Rate 241 Click Through Rate (CTR) 242 Price Elasticity of Demand 242 Using Performance Measures in Business 243 Time Trend Analysis 243 Peer Group Analysis (Benchmarking) 244 A Benchmarking Example 245 Problems of Benchmarking 247 Major Criticism of Key Performance Indicators 247 CHAPTER 8 Value-Based Performance Measurement 257 The Goal of a Business Firm 258 Shareholder Value as the Overall Goal 260 A Justification of Shareholder Value 261 Shareholders vs Stakeholders 263 Shortcomings of Traditional Performance Measures 264 Measuring the Creation of Shareholder Value 265 Residual Income 266 Economic Value Added (EVA) 267 The EVA Formulas 267 Net Operating Profit After Taxes (NOPAT) 269 Capital Employed (CE) 269 Return on Capital Employed (ROCE) 271 Weighted Average Cost of Capital (WACC) 271 Cost of Equity 272 A Numerical Example of Calculating EVA 274 EVA Adjustments 277 Using EVA as a Superior Performance Measure 278 Three Competing Metrics 278 The Underinvestment Problem of ROCE 279 Ways to Increase EVA - The Value Driver Tree 282 Portfolio Management Decisions with EVA 286 Criticism of EVA 289 Alternative Value Concepts 290 Economic Profit 290 Cash Value Added 291 Market Value Added 293 Value-Based Management Systems 294 CHAPTER 9 Strategic Management Accounting and the Balanced Scorecard 303 Strategic vs Operating Management Accounting 304 Phases in the Strategic Management Process and the Role of the Controller 307 Finding and Formulating a Strategy 307 Implementing a Strategy 308 Corporate-Level Strategies vs Business-Unit Level Strategies 309 Corporate-Level Strategies 310 Business-Unit Level Strategies 311 Selected Instruments of Strategic Management Accounting 312 External vs Internal Factors 312 Environmental Analysis 313 Industry Analysis - Porter's Five-Forces Model 315 Generic Strategies 317 Value Chain Analysis 318 Product Life Cycle Analysis 319 BCG's Portfolio Matrix 321 SWOT Analysis 323 The Balanced Scorecard 326 Genesis of the Balanced Scorecard 327 Key Characteristics of the Balanced Scorecard 328 Structure of a Balanced Scorecard 329 Financial Perspective 331 Customer Perspective 332 Internal Business Process Perspective 332 Learning and Growth Perspective (Innovation and Learning) 334 Cause-and-Effect Links 335 The Strategy Map 335 Features of a Balanced Scorecard 337 Developing a Balanced Scorecard 339 Step 1: Formulate the Strategy and Clarify the Strategic Objectives Along the Perspectives 339 Step 2: Set up the Strategy Map 340 Step 3: Define Measures for the Strategic Objectives 341 Step 4: Define Initiatives and Responsibilities for Each Objective 341 Step 5: Feedback and Continuous Improvement 342 The Balanced Scorecard as a Strategic Management System 342 Application in Corporate Practice 345 Criticism of the Balanced Scorecard 347 CHAPTER 10 New Developments in Management Accounting and Control 355 Hot Issues and Future Challenges in Management Accounting 356 Management Accounting in Networks and Supply Chains 357 Management Accounting for Quality - Six Sigma 359 The Role of Management Control in Six Sigma 361 Six Sigma in Practice 362 Integrating Human Behavior into Management Accounting 363 Environmental Management Accounting 366 Integrated Reporting 368 Integrating Financial and Management Reporting 370 The Integrated Reporting (IR) Framework 371 Management Accounting and Control with Big Data 372 The Role of the Controller in Big Data 374 A Critical View on Big Data 375 Bibliography 381 Index 387
זמן אספקה 21 ימי עסקים