ControllingWiki - User contributions [en]

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2013-01-05T12:25:00Z

Thomka: Undo revision 1357 by DavidWashington (talk)

Main Page

2011-08-03T20:02:47Z

Thomka:

Welcome to Controlling-Wiki, the platform for controlling-Know-how. The International Controller Association (ICV) has about 6,000 members mainly from German-speaking countries. They usually are active controllers in small, medium or large companies. The association, founded in 1975, brings together controllers, spreads philosophy and the applications of controlling, promotes the exchange of experience and raises the professional qualification of its members. The ICV sees itself as a lobbyist and as a representative of the business-management competence in public. Experience and communication among the members as well as the focus on future-oriented topics are important targets of the association strategy.

Chairman: Siegfried Gänßlen, Chief Executive Officer of Hansgrohe AG, Schiltach (D). Vice-Chairman: Prof. Dr. Heimo Losbichler, campus director, University of Applied Sciences Steyr (A).

Fixed Cost

2011-01-27T21:30:51Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Fixed costs / [[:de:Fixkosten|Fixkosten]]''' 
Fixed costs are the opposite of [[proportional costs]] (product costs). Fixed costs are incurred in order to ensure that the company can produce and sell. So fixed costs are defined by the company’s structures, in other words by its organisation and capacities, which is why they are also called structure costs. These costs are not unalterably fixed. If decisions are taken to alter a company’s structures, then the structure costs will also change.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

Fixed Cost

2011-01-27T21:29:30Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Fixed costs / [[:de:Fixkosten|Fixkosten]]''' 
Fixed costs are the opposite of [[proportional costs]] (product costs). Fixed costs are incurred in order to ensure that the company can produce and sell. So fixed costs are defined by the company’s structures, in other words by its organisation and capacities, which is why they are also called structure costs. These costs are not unalterably fixed. If decisions are taken to alter a company’s structures, then the structure costs will also change.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010

Fixed Cost

2011-01-27T21:27:57Z

Thomka:

Economic Value Added EVA

2011-01-27T21:11:17Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Economic Value Added EVA / [[:de:Economic Value Added (EVA) |Economic Value Added (EVA)]]''' 
Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers.
EVA is intended to overcome the short-term scope of profitability figures like [[Return on Investment ROI|ROI]], usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry.
Value is created when the difference between realised profitability and the market-oriented cost of capital is positive.
The calculation of capital costs is the same as with shareholder value using the WACC-formula ([[Weighted Average Cost of Capital WACC|WACC = Weighted Average Cost of Capital]]) as a market-orientated interest rate.
The relevant profit figure is profit after taxes but before deduction of interest. To take investments in the future of the company into consideration, expense for research & development, marketing and product introduction is added to the above profit figure and then written off over several years. The resulting depreciation is then deducted from the profit figure. This leads to a higher profit volume, which in turn leads to a higher tax volume.
The following formula is the result:

[[Image:EVAe.png|x50px]]

EVA can thus also be described as the surplus profit over the WACC demanded by the capital market.

The net operating assets are also corrected, starting from the balance sheet total. First, the liabilities for which no interest is paid (mainly accounts payable) are deducted. The resulting figure is the capital employed. Then the value of the not yet depreciated expense for research & development, marketing and product introduction is added to the working capital.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Value-based management]]

Cash flow

2011-01-13T20:17:03Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Cash flow / [[:de:Cash Flow|Cash Flow]]''' 
Cash flow is a sales surplus over the liquidity-relevant expenses incurred by a company’s business activities and is therefore also an indicator for a company’s profit situation as well as its self-financing capability.
Various cash flow concepts may be distinguished, depending on the purpose of the analysis and appraisal. First it has to be decided whether extraordinary and neutral transactions should be included or not; here we are only concerned with the ordinary account, i.e. cash flow resulting from normal business activities. Then a decision has to be made as to which fund to start with, since this decision determines which transactions are to be regarded as liquidity-relevant. A fund is defined as the balance of one or more balance sheet accounts used to measure the change in liquidity:

[[Image:Cash flow.png|x500px]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Transfer prices

2011-01-12T20:52:25Z

Thomka:

== IGC-DEFINITION ==
'''Transfer prices / [[:de:Verrechnungspreise|Verrechnungspreise]]''' 
The term transfer price should be used very sparingly, in order not to be misunderstood. Transfer pricing determines the prices when exchanging goods and services between interrelated companies or divisions within a single company or group. If services are exchanged between cost centers, then the term [[Internal services|internal cost allocation]] is used.
Within corporations the problem arises that the supplying company allocates structure costs and profit elements to its delivery price (also called transfer price). For the receiving company these transfer prices are like external material costs, i.e. as if this material would have been bought from outside suppliers. The receiver therefore has no transparency over allocated cost elements. This can lead to the situation that the individual company maximizes its own profit without taking the overall interests of the corporation into consideration. Therefore, corporate controllers should design corporate management accounting systems in a way that the total contribution margin throughout the corporation is transparent. They have to ensure that for decision-taking the proportional costs and the contribution volume, over all levels of production, are known to the person fixing the contract with the outside customer.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]], [[Category:Financial accounting]]

Strategy

2011-01-12T20:50:15Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Strategy / [[:de:Strategie|Strategie]]''' 
In the market economy, the term strategy is used to refer to thinking in terms of competitive advantages.

Strategic planning aims to discover what [[potentials for success]] the company, or rather the strategic business unit has to offer, and what new potentials for success the firm should develop. It seeks to discover whether it is doing the right thing for the right customers.
Operative management should then exploit the available potentials for success, that is to say convert them into contribution margins and profits, and develop the new potentials.

A strategic business unit is a definition, for organisational convenience, of mostly homogeneous possible fields of activity, which are typified by common strategic characteristics and for each of which an independent product-market-strategy can be worked out and put into practice.

Functional area strategies serve to put the corporate strategy into practice at the level of individual areas of business such as marketing, R&D, personnel, finance, etc. They ensure that all the functional areas with an influence on strategy make their contribution to the implementation of the overall strategy, that potentials for rationalisation are realised and additional capacity potentials are developed.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Strategy]]

Standard costing

2011-01-12T20:48:04Z

Thomka:

== IGC-DEFINITION ==
'''Standard costing / [[:de:Standardkostenrechnung|Standardkostenrechnung]]''' 
Standard costing is a cost accounting method where all input and output units are always calculated at standardised rates. Supplies from stock are valued at the standard purchase price and outputs from cost centers at the planned cost rate. This has the great advantage that in the [[Variance analysis / comparison of budgeted and actual figures CBA|comparison between budgeted and actual figures]] variances, which have occurred in upstream systems do not appear in downstream systems. In this way the requirement of responsibility accounting is met, whereby only those costs are shown that can be influenced. 
The standard product costs derive from preliminary costing. On a unit basis, they are calculated by multiplying the materials required (standard quantity) with the corresponding standard material prices as well as the working hours (standard hours) with the appropriate proportional cost rates. They therefore express what the single product will incur in the way of output-related costs. In the preliminary calculation the standard product costs are calculated in terms of a specific order, i.e. according to exact specifications from the customer but with standard prices and budgeted cost rates. So any difference that may arise is to be attributed only to subsequent changes in the order.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Risk management

2011-01-12T20:46:10Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Risk management / [[:de:Risikomanagement|Risikomanagement]]''' 
Risk in the entrepreneurial sense is a combination of the probability of a certain damage and the size of its financial consequences.

Risk management is concerned with the identification and valuation of risks, also defining the acceptable level of risk and their limitation with the help of hedging methods. Starting point is a risk policy, which is determined by top management and then realized on all management levels.
To do so, it is necessary to know all the risks a company can encounter, to valuate them and to monitor their development. This task is often delegated to the [[controller]].

A risk analysis should on the one hand describe the actual situation and on the other hand generate risk awareness.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Strategy]]

Return on Investment ROI

2011-01-12T20:44:23Z

Thomka:

== IGC-DEFINITION ==
'''Return on Investment ROI / [[:de:Return on Investment ROI|Return on Investment ROI]]''' 
The Return on Investment is what should ‘come back’ from the investment. It therefore represents the profit goal. The profit is related to the invested operating assets, because the management has to earn the profit with the investment, i.e. with the available assets. The ROI ratio can be broken down into two basic components:

[[Image:ROIe.png|x95px|]]

→ [[Ratio systems]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:IT / Reporting]]

Planning and planning framework

2011-01-12T20:41:02Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Planning and planning framework | [[:de:Planung und Planungssystematik|Planung und Planungssystematik]]''' 
Planning is the intellectual anticipation of possible future situations, the selection of desirable situations to be achieved (objectives) and the determination of relevant actions that need to be taken to reach those objectives. So the business has constantly to adjust to internal and external changes, requiring decisions to be taken with an eye to future effects.
As a [[controller]], one has to rely on an inter-linked and in itself consistent planning framework. And here the following planning levels have proved their worth in practice:

[[Image:Planning.png|x300px|]]

Operative planning consists of mid-term planning, acting as a hinge, which links long-term strategy and annual planning. Operative planning arises from strategic planning and should demonstrate in budgeted values how the objectives have been apportioned and how they are to be achieved. Annual planning also serves as a basis for the comparison of budgeted and actual figures.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Market share absolute, relative

2011-01-12T20:39:33Z

Thomka:

== IGC-DEFINITION ==
'''Market share absolute, relative / [[:de:Marktanteil absolut, relativ|Marktanteil absolut, relativ]]''' 
The market share is the relationship of the sales volume of a business or of a product to the volume of the relevant market in one year. In the absence of market volume statistics market share is often calculated based on sales.
The relative market share compares a business’s own turnover or sales volume in a given period with its biggest competitors in this market. Depending on which comparisons are made, different ratios result – as the following example shows:

[[Image:Market share.png|x200px|]]

The sales of A compared to its biggest competitor (B) result in a relative market share of 2.08 (250 : 120) or 208 %. If A is compared to the three biggest competitors (B, C, D) the relative market share is 1.00 or 100 %. Compared with the four biggest market participants (A-D), A’s relative market share is only 50 %.

If it is difficult to obtain market data, the business can still estimate its market position with the aid of the relative market share, as long as the sales figures of its biggest competitors are known.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Functional controlling]]

Management result account

2011-01-12T20:37:20Z

Thomka:

== IGC-DEFINITION ==
'''Management result account / [[:de:Management-Erfolgsrechnung|Managementerfolgsrechnung]]''' 
The management result is the target figure for the whole operative activity of a business. It is calculated by adding the standard result and the balance of the variance resumé. In the variance resumé, which is a component of cost accounting, all variances that are not contained in the sales result account, are collated according to causes and areas of responsibility. Thus the management result is collated from the sales result account stepwise as a [[Contribution accounting (Direct Costing and multi-step)|multi-step (stepwise) contribution account]] (standard result) and from cost accounting. In the planning phase management result and standard result are identical since there are no variances yet from the cost accounting system to be taken into consideration.

[[Image:Management result account.png|x300px|]]

To be able to compare the management result to the financial result (which observes commercial and fiscal regulations) a reconciliation bridge is required. This bridge shows all those entries, which are valuated differently in management-oriented accounting than in the balance sheet. If, after the comparison of actual revenues and the actual costs, you get a better actual result than your planned target result, your management result for this period is positive. The management result is therefore the [[operating result]] after deducting the target profit.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Mission statement

2011-01-12T20:35:29Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Mission statement / [[:de:Leitbild|Leitbild]]''' 
The mission statement provides the basis for defining how a company is managed. The mission statement does this by familiarising the firm’s employees with the main objectives and parameters of the enterprise’s whole range of activities. So, a clear mission statement answers the question: Who do we want to be? It is a written expression of corporate identity.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:History and philosophy]]

Customer contribution accounting

2011-01-12T20:33:28Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Customer contribution accounting / [[:de:Kundendeckungsbeitragsrechnung|Kundendeckungsbeitragsrechnung]]''' 
Customer contribution accounting refers to the [[contribution margin|contribution]] of a particular customer once all costs clearly incurred (i. e. verifiable by voucher) in connection with this customer, have been deducted from the revenues. Customer group surveys are important assessment tools for the development of marketing policy and for strategic management.

Structure for a customer contribution account

[[Image:Customer contribution accounting.png|x280px|]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Functional controlling]]

Cost cube

2011-01-12T20:31:02Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Cost cube / [[:de:Kostenwürfel|Kostenwürfel]]''' 
If we want to analyse the management’s responsibility for costs and revenues and prepare the necessary information for taking cost-related decisions, we first must present the different cost aspects in the clearest possible way, showing how they are inter-linked, and second make consistent use of clearly defined concepts. The cost cube is not a new theory but rather a model for explaining cost behaviour, which has proven itself very useful in practice. It presents the cost aspects in three dimensions:

[[Image:Cost tube.png|x500px|]]

*Product costs / structure costs (vertical axis of the cube): For the purposes of [[decision accounting]] it is important to differentiate between costs caused by the nature of the products on one hand – and costs caused by the structure of the business on the other hand. Product costs ([[proportional costs]]) are the direct and causal consequence of producing a product-item or a service. In contrast structure costs are defined by a business’s capacity and organisational structure. These are costs, in other words, that are not directly dependent on output but are determined by decisions over the business’s capability to produce goods and services. These [[structure costs]] express the necessary effort to ensure that goods and services can be produced at all.

*Controllability in the short or middle term (horizontal axis of the cube): “Who has the competence to influence costs as they arise and in what time-frame can the costs be changed?” These are the questions asked by [[responsibility accounting]]. This dimension shows, which cost amounts can be altered in what time-frame.

*Direct and indirect costs (third dimension in the cube): Whether it is a matter of direct or indirect costs depends on the object in question. The salary of the employee in the accounts receivable department (structure costs, controllable in the middle term) belongs to the [[direct costs]] of the accounting cost center, but to the [[overheads/indirect costs|indirect overhead costs]] of products. Material costs for highly refined parts (product costs, controllable in the long term, because only one supplier is available) are direct costs of the manufactured product.

The same three-dimensional way of thinking applies to the costs dependent on revenue. Commissions, deductions from revenue, freight charges, those parts of the distribution costs dependent on orders etc. – All these costs are no longer depend on the volume produced but on sales-mix, sales volume and revenue, which means they need to be represented by a detached cube.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

MediaWiki:Sidebar

2011-01-12T20:29:50Z

Thomka:

* SEARCH
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Ratio systems

2011-01-12T20:28:42Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Ratio systems / [[:de:Kennzahlensysteme|Kennzahlensysteme]]''' 
Ratio systems are (mathematically or logically connected) combinations of ratios (absolute or relative figures with special significance). Ratios are derived from planned values or actual data and serve as a measurement to show the cause and effect of changes in operations. Under the entry ”objective” we have a ratio system structure, which can be used to compare budgeted and actual figures.

The [[Return on Investment ROI|ROI]]-tree (see diagram) shows the return on investment (more precisely: return on operating assets) and the factors that influence it in an inter-linked pattern of accounting.

[[Image:Ratio systems.png|x370px|]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:IT / Reporting]]

Weighted Average Cost of Capital WACC

2011-01-12T20:26:37Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Weighted Average Cost of Capital WACC / [[:de:Kapitalkostensatz WACC|Kapitalkostensatz WACC]]''' 
The Weighted Average Costs of Capital are calculated to simulate an interest rate that corresponds to market interest rates. The assumption is that the risk to invest into a company’s equity can be quantified by comparison with respective interest rates in the market. Two types of risk are distinguished:
*The risk to invest in the stock market (objective risk)
*The risk to invest in shares of a given company (subjective risk).

The objective risk is the difference between a risk-free interest rate (usually the interest rate for a government bond with guaranteed payment of interest and amortisation at the end of the bond loan) and the expected interest yield of the average stock market (price gains and dividends). These rates are calculated regularly through banks and stock exchange institutions, e.g. Swiss Performance Index.

The same institutions also calculate the Beta-factor (in short „beta“), which is used to judge the subjective risk. Beta shows – simplified – how much the stock price of a given company goes up or down, when the total market index changes by one percentage point. Beta is thus a measure for the volatility of a title.

Betas are not only calculated for companies quoted on a stock exchange but also by banks so that they can judge small and medium companies. These betas are usually available on request.

The result of the multiplication of the objective market risk with the subjective risk of the title plus the risk-free interest rate is the market-oriented interest rate for the equity of this company after tax.

Now the cost of interest for debts has to be calculated. Starting point is the actual interest rate paid today by the company. This rate has to be reduced to the interest rate after taxes. This is because interests paid for debts are deductible as expenses from the taxable income, therefore they generate tax savings when compared to financing with equity (so called tax shield). This is why the interest rate has to be reduced by the appropriate tax rate of the country.

Finally the resulting interest rates for equity and liabilities have to be weighed according to the estimated future ratio between equity and debt liabilities.

[[Image:WACCe.png|x350px|]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Value-based management]], [[Financing]]

Product costing scheme

2011-01-12T20:21:40Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Product costing scheme / [[:de:Kalkulationsschema|Kalkulationsschema]]''' 
In order to determine the costs of a product or a service you use a product costing scheme, which shows how the individual cost elements are to be assembled.
The best-known of these schemes, which is based on the method of product costing with activity units, is constructed as follows:

[[Image:Product costing scheme.png|x350px|]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Internal audit system

2011-01-12T20:19:06Z

Thomka:

== IGC-DEFINITION ==
'''Internal audit system / [[:de:Internes Kontroll System (IKS)|Internes Kontroll System IKS]]''' 
The internal audit system is the sum of all policies and procedures arranged by the organs of the company (supervisory board / board of directors / management board) that guarantee an orderly and efficient management, the protection of assets, the prevention or detection of tortious acts and errors, the accuracy and completeness of the records of management accounting and the timely preparation of reliable financial information. Companies are required to operate an internal audit system by numerous legal requirements e.g. KonTraG, Sarbanes-Oxley Act (SOX).
We conclude therefore that neither can the internal audit system be part of the [[controller]] service, because it has to monitor the service’s compliance with the mentioned principles and procedures, nor may the controller be part of the internal audit, because he practices future-oriented management support.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Financial accounting]]

International Accounting Standards IAS / IFRS

2011-01-12T20:16:39Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''International Accounting Standards IAS / IFRS / [[:de:International Accounting Standards IAS/IFRS|International Accounting Standards IAS/IFRS]]''' 
International Accounting Standards are a set of rules that serve to standardize valuation rules, presentation of results and the contents of annual reports. Their purpose is to make balance sheets, income statements and notes of annual reports comparable internationally and they are revised and extended continuously. There is no law that enforces IAS-rules in reporting, but the requirements of investors, the media and banks regarding presentation of results are increasingly based on these rules.

Recently the IAS-rulework has been renamed to IFRS International Financial Reporting Standards.

The guiding principle of all IAS-rules is to show a true and fair view of the company’s situation during the period reported. Like US-GAAP, IAS-rules are not intended to replace managerial accounting as they are designed for the external reporting to stakeholders and not for the direct control of operations within the company and in the market.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Financial accounting]]

International Group of Controlling IGC

2011-01-10T21:01:59Z

Thomka:

== International Group of Controlling IGC / [[:de:International Group of Controlling (IGC)|International Group of Controlling (IGC)]] ==
The [http://www.igc-controlling.org/EN/ International Group of Controlling IGC] was founded in 1995. Its main objectives are to promote common interests in accounting and controlling education as well as research and development in the whole field of controllership. The [http://www.igc-controlling.org/EN/ IGC] also serves as a platform for its members to harmonise and develop a common understanding of controlling concepts and a uniform terminology. Based on these objectives the IGC formulated a [[mission statement for controllers]] already in 1996:

{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"
|-
| '''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.'''

*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.

*Controllers coordinate sub-[[Objective / Target|targets]] and sub-plans in a holistic way and organise a reporting-system that is oriented towards the future and covers the enterprise as a whole.

*Controllers moderate and design the process of goal-finding, [[Planning and planning framework|planning]] and management control so that every decision-maker can act in accordance with agreed objectives.

*[[Controller]]s provide all relevant controlling-information to managers.

*Controllers develop and maintain the [[controlling]] systems.

Controllers are thus internal consultants to all decision-makers for questions in planning, performance and accounting.
|-
|}
 

The [[dictionary for controllers]], published by the [http://www.igc-controlling.org/EN/ International Group of Controlling IGC], is aimed at practitioners (controllers and managers) – as well as students. It is intended as a reference guide for the most important technical terms. This 4th edition has been enhanced and revised to various currently discussed terms. The [[dictionary for controllers]] was purchased more than 17’000 times since the year 2000. Thus it has become an international standard for technical terms in controlling and for controllership.

Dkfm. Dr. Wolfgang Berger-Vogel 
Chairman of the IGC International Group of Controlling, 
Linz, Austria 
in spring 2010

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Controllers]]

Forecast

2011-01-10T20:54:32Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Forecast / [[:de:Erwartungsrechnung|Erwartungsrechnung]]''' 
The forecast is the logical continuation of the [[Variance analysis / comparison of budgeted and actual figures CBA|comparison between budgeted and actual figures]]. Here managers are asked for their forecasts for the remainder of the budget period and these are then quantified and qualified. The intention is to see whether the business will succeed in achieving its planned objectives at the year-end (or at the end of the bud-get period). What is sought are the expected results at the end of the period. On the basis of the results achieved so far, of experiences to date, and the remainder of the budget managers consider corrective actions and their effects.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Overheads/indirect costs

2011-01-10T20:50:16Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Overheads/ indirect costs / [[:de:Gemeinkosten|Gemeinkosten]]''' 
Indirect costs are the opposite of [[direct costs]]. The salary of a departmental head of a production workshop would count as a direct cost in this department, or as an overhead related to the orders that pass through this department.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Direct costs

2011-01-10T20:46:02Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Direct costs / [[:de:Einzelkosten|Einzelkosten]]''' 
Direct costs can be assigned (or posted) by means of a voucher and without using a key to the specific object in question. These objects may be broken down into products, services, orders, cost objects, projects, profit centers, divisions, cost centers (departments, regions, branches).
It is particularly important to make sure that every amount, when first registered, is charged as direct costs to a cost center or an order and not assigned elsewhere by key. Keeping to this rule is the foundation of an accounting system based on management responsibility.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Economic Value Added EVA

2011-01-10T20:43:35Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Economic Value Added EVA / [[:de:Economic Valued Added (EVA) |Economic Value Added EVA]]''' 
Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers.
EVA is intended to overcome the short-term scope of profitability figures like [[Return on Investment ROI|ROI]], usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry.
Value is created when the difference between realised profitability and the market-oriented cost of capital is positive.
The calculation of capital costs is the same as with shareholder value using the WACC-formula ([[Weighted Average Cost of Capital WACC|WACC = Weighted Average Cost of Capital]]) as a market-orientated interest rate.
The relevant profit figure is profit after taxes but before deduction of interest. To take investments in the future of the company into consideration, expense for research & development, marketing and product introduction is added to the above profit figure and then written off over several years. The resulting depreciation is then deducted from the profit figure. This leads to a higher profit volume, which in turn leads to a higher tax volume.
The following formula is the result:

[[Image:EVAe.png|x50px]]

EVA can thus also be described as the surplus profit over the WACC demanded by the capital market.

The net operating assets are also corrected, starting from the balance sheet total. First, the liabilities for which no interest is paid (mainly accounts payable) are deducted. The resulting figure is the capital employed. Then the value of the not yet depreciated expense for research & development, marketing and product introduction is added to the working capital.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Value-based management]]

Contribution accounting (Direct Costing and multi-step)

2011-01-10T20:40:11Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Contribution accounting (Direct Costing and multi-step) / [[:de:Deckungsbeitragsrechnung|Deckungsbeitragsrechnung (ein- und mehrstufig)]]''' 
Contribution accounting is the tool for planning and controlling the business’s activities towards the profit objective. Its task is twofold:

*to enable managers to have a better understanding of the effects their decisions are likely to have on profits (decision accounting);
*to convert objectives into figures to provide performance ratings for managers (responsibility accounting).

Contribution accounting involves the linking of a market-oriented philosophy with economic quantities and values; it leads to a way of thinking that starts with the customer perspective. A well-developed contribution accounting system therefore provides the necessary transparency and shows whether market planning as well as technical and organisational structures are moving collectively towards the profit goal.

Stepwise contribution accounting 
Since structure costs do not alter in direct proportion to the number of items sold or produced, it is not possible to calculate the genuine full costs of any product unit. Consequently, the system of stepwise contribution accounting was developed to improve the possibilities of analysing and controlling costs.
Starting from the CM I, blocks of structure costs are deducted one after another, based on their relationship to the object in question (e.g. product or product group). This multiple calculation of subsequent contribution margins allocates structure costs without applying a key. It is still not possible to see how much a particular item has brought in in terms of profit, but the contribution which an article, a product, or a product group or a range of goods makes towards the covering of the structure costs can be calculated as a figure that can be planned, controlled and for which somebody can be made accountable.

Sales result account 
Using the method of stepwise contribution accounting for structuring a sales result account offers many insights for managing and measuring costs and sales performance. The aim of a sales result account is to show the results and the degree of success of one or more sales organisations according to individual sources of profit. For this purpose, all cost factors have to be isolated which cannot be influenced by the sales organization. For this reason, the production costs in the sales result account are always calculated at standard rates, i.e. as planned, then deducted from the net revenue. The structure costs of other functional areas are always deducted as planned values (in budget and actuals).
Therefore any variances between budgeted and actual figures, for which sales is not responsible do not appear in the sales result account, but are shown in the variances résumé.

[[Image:Contribution accounting.png|x600px|]]

The number of contribution steps depends on the organisational structure of the business – its areas of responsibility are reflected in the structure of the CM steps. Since multi-dimensional contribution accounting is now more frequent and the structure of the contribution account differs for each company, it is a good idea not just to number the various contributions but also to provide them with descriptive names.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Multidimensional contribution accounting

2011-01-10T20:37:10Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Multidimensional contribution accounting / [[:de:Mehrdimensionale Deckungsbeitragsrechnung|Mehrdimensionale Deckungsbeitragsrechnung]]''' 
Since the market is usually approached through different channels and, additionally not only the products dimension is essential for strategic planning, there is now an increasing need for a multidimensional presentation of a company’s [[contribution margin]]s. It is therefore necessary to be able to create [[Contribution accounting (Direct Costing and multi-step)|multiple contribution accounts]] based on a business’s work practices, procedures and philosophies. These accounts should be structured according to the relevant business dimensions such as sales areas, regions, distribution channels, fields of application, customers’ needs or strategic business units (SBU’s).
Such multidimensional contribution accounts are devised according to the principle that only those [[structure costs]] are deducted in steps from the CM I, which are unequivocally assignable (by voucher) to the object in question.

[[Image:Multidimensional contribution accounting.png|x750px|]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

Contribution margin

2011-01-10T20:34:38Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Contribution margin / [[:de:Deckungsbeitrag|Deckungsbeitrag]]''' 
The contribution margin may be defined as the surplus of net revenue over the costs clearly entailed without allocating [[structure costs]] using a key.
Contribution margin I (CM I) is calculated by subtracting the proportional costs of sales ([[product costs]]) from the net revenue. CM I demonstrates how much the individual article, the product, etc. contributes towards covering the structure costs of a business as well as towards the profit. It is the yardstick for assessing a product’s profitability.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Budgeting]]

Controlling

2011-01-10T20:29:44Z

Thomka:

== IGC-DEFINITION ==
'''Controlling / [[:de:Controlling|Controlling]]''' 
Controlling takes place when manager and controller cooperate.

{| border="1" cellspacing="0" cellpadding="2" align="center" style="border-collapse:collapse;"
|-
! Controlling is the whole process of defining objectives, of planning and controlling (in the sense of steering and regulating) and includes all relevant financial and commercial aspects.
|-
|}

Controlling involves such activities as taking decisions, defining actions or procedures determining alternatives, directing individuals and their activities and setting up guidelines. Consequently managers must practise controlling, since it is their responsibility to define a company’s objectives and to specify the necessary targets as part of the planning process. Likewise, they are responsible for the achieved results. Controlling is therefore understood as a management activity and should be undertaken in every business, however small. For the same reason controlling should not be thought of as being exclusively the professional controller’s job.

[[Image:Manager Controller.png|x220px|]]

Management that practises proper controlling is focussed on objectives and planning, is forward-looking, adaptable and decentralised. It only makes sense to install controller services in those businesses whose managements believe in and practice controlling.
Operative controlling includes those management activities that cover setting objectives, planning and controlling in the mid-term and single year time frame. The main objectives are liquidity, profits and financial stability.
Strategic controlling includes those management activities that comprise the planning, testing, implementation and monitoring of strategies. The time span is determined by the period considered relevant for the strategy’s development. Typical objectives here could be: existing and future [[potentials for success]], [[Market share absolute, relative|market shares]] as well as (free) [[cash flow]].

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:History and philosophy]]

Controller organisation

2011-01-10T20:27:12Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Controller organisation / [[:de:Controllerorganisation|Controllerorganisation]]''' 
Controllers should ensure that managers do their own controlling. For this reason there should not be any department called “Controlling” since managers might get the impression that they can delegate the task of controlling to the controllers.
To avoid this misperception, we recommend the following terms to describe the departments in which controllers work: Controller’s department, Controller Service, Control, Management Service, Controller team, Business Administration or Business Support Department.

The areas of work that controllers have to cover are so comprehensive that even in medium-sized businesses there is pressure to decentralise a controller’s tasks and for corresponding specialisation. This is a consequence of the management-oriented and situational consulting role of the controller. The following are examples of decentralised controllership:
*Controller for subsidiaries
*Marketing & Sales Controller
*Production Controller
*Logistics Controller
*Research & Development Controller

Decentralised controllers are normally assigned directly to a local superior and are additionally connected to the central controller service by a dotted line (in the organisation chart). The dotted line represents the authority of a company’s chief controller in all topics concerning systems, procedures and controllership.

Because controllers have fundamental responsibilities that extend right across the whole business, it has proven effective in practice to incorporate the company’s top controller into the board of executives – for the purpose of enforcement. In large English-speaking companies, this position is normally held by the Chief Financial Officer CFO, who is then the boss of all centralised controllers and the treasurer.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:History and philosophy]]

Mission statement for controllers

2011-01-10T20:17:19Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Mission statement for controllers / [[:de:Controller-Leitbild|Controller-Leitbild]]''' 
The mission statement of the IGC International Group of Controlling defines the role of the controller as follows:

{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"
|-
|'''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.'''

*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.
*Controllers coordinate sub-[[Objective / Target|targets]] and sub-plans in a holistic way and organise a reporting-system that is oriented towards the future and covers the enterprise as a whole.
*Controllers moderate and design the process of goal-finding, [[Planning and planning framework|planning]] and management control so that every decision-maker can act in accordance with agreed objectives.
*[[Controller]]s provide all relevant controlling-information to managers.
*Controllers develop and maintain the [[controlling]] systems.

Controllers are thus internal consultants to all decision-makers for questions in plan-ning, performance and accounting.

The controller’s responsibility results from these tasks.

|-
|}
 

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:History and philosophy]]

Controller

2011-01-10T20:12:55Z

Thomka:

== IGC-DEFINITION ==
'''Controller / [[:de:Controller|Controller]]''' 
Controllers provide services for managers. They design and maintain the tools for [[Planning and planning framework|planning]] and budgeting, for [[Variance analysis / comparison of budgeted and actual figures CBA|comparison of budgeted and actual figures]] and [[forecast]]s. It is their task to ensure transparency of costs and results at every level of management: from corporate policy to strategy, over operative planning down to day-to-day operations. They make sure that the systems they have developed, and which they keep up-to-date, are fit for management and adequate for controlling. In particular this means that they build up their systems with an eye to objectives, decision-making and allocation of responsibilities.
Controllership is a collective term for all controller activities.
The mission statement of the IGC International Group of Controlling defines the role of the controller as follows:

{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"
|-
|'''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.'''

*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.
*Controllers coordinate sub-[[Objective / Target|targets]] and sub-plans in a holistic way and organise a reporting-system that is oriented towards the future and covers the enterprise as a whole.
*Controllers moderate and design the process of goal-finding, [[Planning and planning framework|planning]] and management control so that every decision-maker can act in accordance with agreed objectives.
*Controllers provide all relevant controlling-information to managers.
*Controllers develop and maintain the [[controlling]] systems.

Controllers are thus internal consultants to all decision-makers for questions in plan-ning, performance and accounting.

The controller’s responsibility results from these tasks.

|-
|}
 

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Controllers]]

Benchmarking

2011-01-10T20:10:58Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Benchmarking / [[:de:Benchmarking | Benchmarking]]''' 
Benchmarking is an analysis and [[Planning and planning framework|planning]] tool, which allows an individual company to be compared with the best of its competitors. Furthermore, comparisons can be made with the best practices demonstrated by companies in a different industry. It is therefore a process which compares the methods, operations and results of business functions with one or more other enterprises in order to discover opportunities for rationalisation or for improving quality and performance. The table gives an indication of the various starting-points to attain benchmarks.

[[Image:Benchmark.png|x150px|]]

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Strategy]]

Balanced Scorecard

2011-01-10T20:09:04Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Balanced Scorecard / [[:de:Balanced_Scorecard|Balanced Scorecard]]''' 
As the term implies, the Balanced Scorecard should allow a balanced control with the help of ratios or indicators and thus should be integrated in reporting. Traditional reporting systems focus almost exclusively on financial and profit ratios – while the Balanced Scorecard also takes non-financial elements (e.g. ‘Number of new customers acquired’) into account when evaluating results. Special attention is given to the relative importance of the different ratios or indicators as the Balanced Scorecard does not only concentrate on the ratio figures themselves, but mainly focuses on management’s realisation of the objectives according to the organization’s formulated strategies.

In its classic form, the Balanced Scorecard is built with four perspectives of control in mind:
*Financial and value perspective
*Market and customer perspective
*Process perspective
*Knowledge and innovation perspective.

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Strategy]]

Variances

2011-01-10T20:07:04Z

Thomka:

== IGC-DEFINITION (abbreviated) ==
'''Variances / [[:de:Abweichungen|Abweichungen]]''' 
A variance is a difference between a planned or a budgeted value and an actual value. Variances give managers the opportunity to consider possible corrective actions and to implement them. The causes of a variance from the planned or budgeted figures are ascertained by means of a
→[[Variance analysis / comparison of budgeted and actual figures CBA|variance analysis]].

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

[[Category:Planning]]

MediaWiki:Sidebar

2011-01-10T20:04:57Z

Thomka:

* SEARCH
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MediaWiki:Sidebar

2011-01-10T19:59:25Z

Thomka:

MediaWiki:Sidebar

2011-01-10T19:25:03Z

Thomka:

MediaWiki:Sidebar

2011-01-10T19:23:19Z

Thomka:

* SEARCH
*Links
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*Localised Versions
** http://www.controlling-wiki.com/de | Wiki Deutsch
** http://www.controlling-wiki.com/pl | Wiki Polnisch

* navigation
** http://www.controlling-wiki.com/en/index.php/Special:AllPages|All Pages
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* TOOLBOX
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*Authors
** Category:Authors | Active authors

MediaWiki:Sidebar

2011-01-10T19:22:10Z

Thomka:

* SEARCH
*Links
** http://www.controllerverein.com | Internationaler Controllerverein

*Localised Versions
** http://www.controlling-wiki.com/de | Wiki Deutsch
** http://www.controlling-wiki.com/pl | Wiki Polnisch

* navigation
** http://www.controlling-wiki.com/en/index.php/Special:AllPages|All Pages
** mainpage|mainpage-description
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* TOOLBOX
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2011-01-10T19:20:47Z

Thomka:

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Variances

2010-11-18T21:15:08Z

Thomka: /* IGC-DEFINITION (abbreviated) */

Variances

2010-11-18T21:12:13Z

Thomka: /* IGC-DEFINITION (abbreviated) */

== IGC-DEFINITION (abbreviated) ==
'''Variances / [:de:Abweichungen|Abweichungen]''' 
A variance is a difference between a planned or a budgeted value and an actual value. Variances give managers the opportunity to consider possible corrective actions and to implement them. The causes of a variance from the planned or budgeted figures are ascertained by means of a
→[[Variance analysis / comparison of budgeted and actual figures CBA|variance analysis]].

from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]

== Source ==

[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

The Whale Curve of Customer Profitability

2010-06-12T08:57:38Z

Thomka:

The Whale Curve of Customer Profitability - depicts the profit contribution profile of a customer base and highlights that 20% of customers can actually contribute 140% of overall customer base profitability, and that another 20% of customers can erode 40% of the bottom line. The horizontal axis of the Whale Curve graph represents the percentage of total customers ranked from the most profitable to the least profitable. The vertical axis represents cumulative profit contribution.

== Literature ==
Grey P., Gold mining your customer portfolio: Customer Profitability, loyalyty & lifetime value (http://issuu.com/vaasaett/docs/goldmining-customer-portfolio)

== Author ==
Zieliński Tomasz

Variable Cost

2010-05-04T17:44:46Z

Thomka: New page: Variable Cost From ControllerWiki (unreviewed) Jump to: navigation, search Variable Cost – in relation to a resource, it’s a cost that changes with changes in level of resource output...

Variable Cost
From ControllerWiki
(unreviewed)
Jump to: navigation, search

Variable Cost – in relation to a resource, it’s a cost that changes with changes in level of resource output.

== Author ==
Zieliński Tomasz

Trigger

2010-05-04T17:43:13Z

Thomka: New page: Trigger From ControllerWiki (unreviewed) Jump to: navigation, search Trigger - the occurrence of an event that starts as an activity. == Literature == Emblemsvag J., Life-cycle costing ...

Trigger
From ControllerWiki
(unreviewed)
Jump to: navigation, search

Trigger - the occurrence of an event that starts as an activity.

== Literature ==
Emblemsvag J., Life-cycle costing

== Author ==
Zieliński Tomasz