https://www.controlling-wiki.com/en/api.php?action=feedcontributions&user=Markus+Berger-Vogel&feedformat=atomControllingWiki - User contributions [en]2024-03-29T01:15:14ZUser contributionsMediaWiki 1.33.3https://www.controlling-wiki.com/en/index.php?title=Costs_/_Cost_accounting&diff=476Costs / Cost accounting2010-12-23T08:48:23Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
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<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Costs/Cost accounting / [[:de:Kosten|Kosten]]'''<br><br />
Costs are the value-based consumption of goods and services for the production of output. The valuation standards depend on the requirements of the management ([[decision accounting]] and [[responsibility accounting]]). &rarr; [[Cost cube]]<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
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[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Mission_statement_for_controllers&diff=475Mission statement for controllers2010-12-23T07:12:37Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
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<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Mission statement for controllers / [[:de:Controller-Leitbild|Controller-Leitbild]]'''<br><br />
The mission statement of the IGC International Group of Controlling defines the role of the controller as follows:<br />
<br />
{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"<br />
|-<br />
|'''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.''' <br />
<br />
*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.<br />
*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.<br />
*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.<br />
*[[Controller]]s provide all relevant controlling-information to managers.<br />
*Controllers develop and maintain the [[controlling]] systems.<br />
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Controllers are thus internal consultants to all decision-makers for questions in plan-ning, performance and accounting.<br />
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The controller’s responsibility results from these tasks.<br />
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|-<br />
|}<br />
<br style="clear:both;" clear="all" /><br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
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[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Objective_/_Target&diff=474Objective / Target2010-12-14T08:08:27Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Objective/Target / [[:de:Ziel|Ziel]]'''<br><br />
An objective is a desired future state, which should be precisely defined in terms of content, time frame and scope. One can also regard an objective as a result to be achieved. In the English-speaking world – the term target is often used to define a specific figure or ratio to be achieved (e.g. sales volume, percentage of sales, etc.) Thinking and working with objectives and targets is indispensable for effective [[controlling]]. Management by objectives and controlling interlock and grow together. Objectives are supposed to define what is to be achieved and accordingly need to be reviewed and reworked each year. In an objective-oriented corporate culture a person qualifies as a manager by planning his objectives precisely (without building in slack) and then achieving them too.<br />
Objectives are typically clearly quantified and qualified. In the process of setting and agreeing upon objectives, individual targets for the employees responsible are derived step by step from corporate objectives like, for example, the [[Return on Investment ROI|Return on Investment]]. Depending on the employee’s area of responsibility, these can be contribution margin objectives, cost or output objectives. The combination of [[contribution margin]] and [[Costs / Cost accounting|cost]] objectives generates consistent objective frameworks for achieving profitability and systems which are suitable for [[responsibility accounting]] as well as for [[decision accounting]]. In this way the desired behaviour of managers aimed at by the controlling tools can be implemented.<br />
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[[Image:Objective.png|x750px|]]<br />
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Management by (agreeing upon) objectives is superior to setting objectives because each employee is involved in the process of working out objectives, which promotes his own motivation and readiness to accept the objectives.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
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[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Transfer_prices&diff=473Transfer prices2010-12-14T08:00:56Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Transfer prices / [[:de:Verrechnungspreise|Verrechnungspreise]]'''<br><br />
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.<br />
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.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
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[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Responsibility_accounting&diff=472Responsibility accounting2010-12-14T07:59:01Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Responsibility accounting / [[:de:Verantwortlichkeitsrechnung|Verantwortlichkeitsrechnung]]'''<br><br />
The whole management accounting system should be constructed on the principle of responsibility. Since managers are also responsible for the financial results, it is important to ensure, through the creation of cost centers, cost objects and [[Contribution accounting (Direct Costing and multi-step)|contribution accounting]], that each management person can see, which costs, outputs and revenues she can control directly within the time-span of one year.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
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[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Corporate_policy&diff=471Corporate policy2010-12-14T07:57:11Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Corporate policy / [[:de:Unternehmenspolitik|Unternehmenspolitik]]'''<br><br />
Corporate policy has the task of harmonising external interests in the company and purposes that determine the company with internally pursued objectives, in order to create a match between the external environment and the business environment. This match should, in the long term, guarantee the business’s autonomy and survival. To achieve this, management must establish the basic values and standards of conduct that should become second nature; at the same time they must determine the principles of behaviour for dealing with customers, suppliers and employees.<br />
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Corporate policy consists of the following elements:<br />
*vision<br />
*mission statement<br />
*business concept<br />
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A vision is a concrete picture of the future, near enough for people to see that it is realisable, but far enough away to stir the enthusiasm in the organisation’s workforce for a new reality. A communicable vision should consist of a short and clear statement, formulated in a way that is easily remembered.<br />
The vision is the basis for the mission statement. However, for actual strategic and operative management, both the vision and the mission statement are still too vague. They must be defined in more detail in the business concept.<br />
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The business concept may be divided into three parts:<br />
*market and technological concept<br />
*financial concept<br />
*social concept<br />
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These parts grow out of a holistic view of the business’s management towards all environments, including, of course, the natural environment. A corporate policy that is really applied depends on two preconditions. Its principles must be practised on a daily basis by top management – and it must be formulated in writing, so that managers refer to it as a guide.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Cost_allocation&diff=470Cost allocation2010-12-14T07:55:30Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Cost allocation / [[:de:Umlagen|Umlagen]]'''<br><br />
Cost allocation refers to the charging of cost centers or cost objects with [[structure costs]] from cost centers upstream without any direct or causal connection. Structure costs are thus distributed in a proportional way.<br />
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If structure costs are allocated (e.g. building, material administration, factory administration, sales and general administration costs), it is admittedly possible to calculate the manufacturing costs and the full costs, but no additional transparency is gained.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Target_costing&diff=469Target costing2010-12-14T07:53:28Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Target costing / [[:de:Target Costing|Target Costing]]'''<br><br />
Target costing is the concept of market-oriented target cost management, which applies in the early phases of product development. With target costing products are to be developed to fulfil functional features defined by the customer, thus involving costs to be agreed / accepted by the customer. The obvious question is: How much may a product cost? From the very beginning costing goes hand in hand with product planning and settles on the price determined by market research.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Bill_of_materials&diff=468Bill of materials2010-12-14T07:50:40Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Bill of materials / [[:de:Stückliste|Stückliste]]'''<br><br />
A bill of materials contains information about the components of a product and lists the purchased parts and the self-produced parts – either for the finished or semi-finished products. For each of these parts the standard volume (in the sense of a productive target to be reached) is also defined.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Structure_costs&diff=467Structure costs2010-12-14T07:48:14Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Structure costs / [[:de:Strukturkosten Struko|Strukturkosten Struko]]'''<br><br />
Structure costs are costs caused through the organisational framework in purchasing, in marketing, in research into new products, in the administration, in logistics, in corporate culture, in the navigability of the business. Structure costs should also be planned according to quantities and qualities required for internal activities not related to products Standards of Performance (SOP). This is relevant for planning the required manpower and infrastructure of administrative cost centers. Structure costs are also called [[Fixed Cost|fixed costs]], period costs or capacity costs.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Strategy&diff=466Strategy2010-12-14T07:46:34Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Strategy / [[:de:Strategie|Strategie]]'''<br><br />
In the market economy, the term strategy is used to refer to thinking in terms of competitive advantages.<br />
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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.<br />
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.<br />
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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.<br />
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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.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Standard_costing&diff=465Standard costing2010-12-14T07:31:04Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Standard costing / [[:de:Standardkostenrechnung|Standardkostenrechnung]]'''<br><br />
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.<br><br />
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.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Flexible_budget&diff=464Flexible budget2010-12-14T07:26:20Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Flexible budget / [[:de:Sollkosten|Sollkosten]]'''<br><br />
The flexible budget shows the planned costs for the actual output.<br><br />
As a calculation:<br />
flexible budget = (actual activity x proportional planned cost rate) + planned structure costs.<br />
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<br />
[[Image:Flexible budget.png|x400px|]]<br />
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The flexible budget shows what the actual activity should have cost, had it gone strictly according to plan. Since the planned costs are target figures to be achieved, one could also say that the flexible budget is the yardstick by which production efficiency may be measured.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Variance_analysis_/_comparison_of_budgeted_and_actual_figures_CBA&diff=463Variance analysis / comparison of budgeted and actual figures CBA2010-12-14T07:19:32Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Variance analysis/comparison of budgeted and actual figures CBA / [[:de:Soll-Ist-Vergleich|Soll-Ist-Vergleich SIV]]'''<br><br />
Variance analysis in a broader sense is the comparison between actual values and output on the one hand with “what should have been” on the other. In this form, the term relates to the enterprise as a whole. Variance analysis in the narrower sense (CBA) is the comparison between actual costs incurred and the standard costs within a cost center. The [[Flexible budget|standard costs]] show the costs that would have resulted if the actual activity level was produced as planned. The difference between actual and standard costs is the budget spending variance. In the CBA the causes laying behind these variances are analysed, so that ways and means of avoiding such [[variances]] in future can be identified and any corrective measures agreed upon.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Risk_management&diff=462Risk management2010-12-14T07:16:54Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Risk management / [[:de:Risikomanagement|Risikomanagement]]'''<br><br />
Risk in the entrepreneurial sense is a combination of the probability of a certain damage and the size of its financial consequences.<br />
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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.<br />
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]].<br />
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A risk analysis should on the one hand describe the actual situation and on the other hand generate risk awareness.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Return_on_Investment_ROI&diff=461Return on Investment ROI2010-12-14T07:09:07Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Return on Investment ROI / [[:de:Return on Investment ROI|Return on Investment ROI]]'''<br><br />
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:<br />
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<br />
[[Image:ROIe.png|x95px|]]<br />
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&rarr; [[Ratio systems]]<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Return_on_Capital_Employed_ROCE&diff=460Return on Capital Employed ROCE2010-12-14T06:52:16Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Return on Capital Employed ROCE / [[:de:Return on Capital Employed ROCE|Return on Capital Employed ROCE]]'''<br><br />
Return on Capital Employed is the profitability of those assets for which on the capital side interest is paid. Starting point is, like with [[Return on Investment ROI|ROI]], the operating assets. From this value the interest-free liabilities are deducted (mainly accounts payable). This is the capital employed.<br />
ROCE is an especially useful profit ratio for managers of independent units with their own balance sheets, who are not responsible for taking financing decisions. To realize a high ROCE, he will try to finance a big part of the assets he needs to run his business with „free capital“ keeping his internal profitability (EBIT) high.<br />
EBIT is the right profit figure in this case because the manager cannot take decisions on long-range and equity financing.<br />
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<br />
[[Image:ROCEe.png|x50px|]]<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Product_costs&diff=459Product costs2010-12-14T06:49:35Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Product costs / [[:de:Produktkosten Proko|Produktkosten Proko]]'''<br><br />
Product costs are the costs that ‘slip into’ the product, determining its physical existence. The technical background for this is the [[bill of materials]], recipe and [[work plan]]. Product costs are formulated traditionally per calculation unit – per hour, per piece, per kilogram, per order. It follows then, that they are the additional costs for ‘one more unit’. Product costs are also described as “[[marginal costs]]” or [[proportional costs]].<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Proportional_costs&diff=458Proportional costs2010-12-13T16:01:09Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Proportional costs / [[:de:Proportionale Kosten|Proportionale Kosten]]'''<br><br />
Proportional costs are [[Costs / Cost accounting|costs]] that arise because a product is manufactured or a service delivered. They are determined by the structure of the cost center service or of the product ([[bill of materials|bills of material]], [[work plan]]s, recipes). In the cost plan it is determined, which part of the costs will behave proportionally. If the actual output is lower than planned output, this means that proportional costs are converted into [[structure costs]], because they cannot ‘slip into’ the products. In the case that the output is higher than planned, the reverse happens and the structure costs are converted into proportional costs, which means, that an increased use of available capacity is made to achieve productive output.<br />
Proportional costs are a synonym for variable costs. However, controllers would be well advised not to use the term variable costs since the [[cost cube|pairs of terms]] ‘controllable costs / imputed costs’ and [[product costs]] / structure costs are very often misleading or based on a wrong understanding, which leads to wrong decisions and communication barriers.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Planning_and_planning_framework&diff=457Planning and planning framework2010-12-13T15:53:40Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Planning and planning framework | [[:de:Planung und Planungssystematik|Planung und Planungssystematik]]'''<br><br />
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.<br />
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:<br />
<br />
<br />
[[Image:Planning.png|x300px|]]<br />
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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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
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[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Opportunity_costs&diff=456Opportunity costs2010-12-13T15:50:24Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
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<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Opportunity costs / [[:de:Opportunitätskosten|Opportunitätskosten]]'''<br><br />
Opportunity costs are the costs of the alternative use of a factor in short supply. They are to be considered in [[decision accounting]] when a bottleneck situation occurs. If, for example, there is a shortage of production capacity and a product cannot be manufactured in adequate quantities, then the predictable losses in [[contribution margin]] are the opportunity costs to choose the other product.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Market_share_absolute,_relative&diff=455Market share absolute, relative2010-12-13T15:47:04Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Market share absolute, relative / [[:de:Marktanteil absolut, relativ|Marktanteil absolut, relativ]]'''<br><br />
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.<br />
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:<br />
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[[Image:Market share.png|x200px|]]<br />
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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 %.<br />
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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.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Management_result_account&diff=454Management result account2010-12-13T15:42:26Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Management result account / [[:de:Management-Erfolgsrechnung|Managementerfolgsrechnung]]'''<br><br />
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.<br />
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[[Image:Management result account.png|x300px|]]<br />
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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.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Management_result_account&diff=453Management result account2010-12-13T15:42:08Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Management result account / [[:de:Management-Erfolgsrechnung|Managementerfolgsrechnung'''<br><br />
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.<br />
<br />
<br />
[[Image:Management result account.png|x300px|]]<br />
<br />
<br />
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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Mission_statement&diff=452Mission statement2010-12-13T15:19:12Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Mission statement / [[:de:Leitbild|Leitbild]]'''<br><br />
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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Customer_contribution_accounting&diff=451Customer contribution accounting2010-12-13T15:14:26Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Customer contribution accounting / [[:de:Kundendeckungsbeitragsrechnung|Kundendeckungsbeitragsrechnung]]'''<br><br />
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.<br />
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Structure for a customer contribution account<br />
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[[Image:Customer contribution accounting.png|x280px|]]<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Cost_cube&diff=450Cost cube2010-12-13T15:11:32Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Cost cube / [[:de:Kostenwürfel|Kostenwürfel]]'''<br><br />
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:<br />
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[[Image:Cost tube.png|x500px|]]<br />
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*Product costs / structure costs (vertical axis of the cube):<br>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.<br>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.<br />
<br />
<br />
*Controllability in the short or middle term (horizontal axis of the cube):<br>“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.<br />
<br />
<br />
*Direct and indirect costs (third dimension in the cube):<br>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.<br />
<br />
<br />
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.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Costs_/_Cost_accounting&diff=449Costs / Cost accounting2010-12-13T15:09:39Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Costs / Cost accounting / [[:de:Kosten|Kosten]]'''<br><br />
Costs are the value-based consumption of goods and services for the production of output. The valuation standards depend on the requirements of the management ([[decision accounting]] and [[responsibility accounting]]). &rarr; [[Cost cube]]<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Control&diff=448Control2010-12-13T15:07:16Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Control / [[:de:Kontrolle|Kontrolle]]'''<br><br />
Control (here managerial control) is a non-delegable task of management. It includes identifying the difference between budgeted and actual figures as well as deciding on the necessary corrective actions, checking whether these actions are effective and, if required, introducing sanctions. [[Controller|Controller]]s interpret and prepare the results obtained for management, but do not, in doing so, relieve the managers of their controlling task.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Core_competence&diff=447Core competence2010-12-13T15:04:55Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Core competence / [[:de:Kernkompetenzen|Kernkompetenzen]]'''<br><br />
Core competences are defined as a systematic bundle of technologies and production capabilities that enable a company to develop a great number of product lines. There are three fields of core competences that are separated: „Market-access competences“ facilitate focussed market penetration and establish the contact to buyers, „integrity-related competences“ are important for fast and reliable cooperation between different organisational units and functions within the company, whereas „functionality-related competences“ focus on providing outstanding functionality in the products to be sold.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Ratio_systems&diff=446Ratio systems2010-12-13T15:01:55Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Ratio systems / [[:de:Kennzahlensysteme|Kennzahlensysteme]]'''<br><br />
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.<br />
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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.<br />
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[[Image:Ratio systems.png|x370px|]]<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Weighted_Average_Cost_of_Capital_WACC&diff=445Weighted Average Cost of Capital WACC2010-12-13T14:59:04Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Weighted Average Cost of Capital WACC / [[:de:Kapitalkostensatz WACC|Kapitalkostensatz WACC]]'''<br><br />
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:<br />
*The risk to invest in the stock market (objective risk)<br />
*The risk to invest in shares of a given company (subjective risk).<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
<br />
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.<br />
<br />
Finally the resulting interest rates for equity and liabilities have to be weighed according to the estimated future ratio between equity and debt liabilities.<br />
<br />
[[Image:WACCe.png|x350px|]]<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Product_costing_scheme&diff=444Product costing scheme2010-12-13T14:55:15Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Product costing scheme / [[:de:Kalkulationsschema|Kalkulationsschema]]'''<br><br />
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.<br />
The best-known of these schemes, which is based on the method of product costing with activity units, is constructed as follows:<br />
<br />
[[Image:Product costing scheme.png|x350px|]]<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Internal_audit_system&diff=443Internal audit system2010-12-13T14:45:55Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Internal audit system / [[:de:Internes Kontroll System (IKS)|Internes Kontroll System IKS]]'''<br><br />
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).<br />
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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Internal_services&diff=442Internal services2010-12-13T14:42:44Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Internal services / [[:de:Innerbetriebliche Leistungen|Innerbetriebliche Leistungen]]'''<br><br />
Internal services are what one cost center provides for another. If the exchange of services can be measured and if the amount of service procured is dependent on the actual activity of the center procuring the service, then the internal services are calculated according to work reports. But if the exchange of services cannot be measured clearly, then the costs are apportioned according to a pre-established key (allocation of costs) or a service level agreement is drawn up to charge the costs. Internal service calculations are always carried out with planned cost rates, which result from annual budgeting.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=International_Accounting_Standards_IAS_/_IFRS&diff=441International Accounting Standards IAS / IFRS2010-12-13T14:39:20Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''International Accounting Standards IAS / IFRS / [[:de:International Accounting Standards IAS/IFRS|International Accounting Standards IAS/IFRS]]'''<br><br />
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.<br />
<br />
Recently the IAS-rulework has been renamed to IFRS International Financial Reporting Standards.<br />
<br />
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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=International_Accounting_Standards_IAS_/_IFRS&diff=440International Accounting Standards IAS / IFRS2010-12-13T14:39:05Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''International Accounting Standards IAS / IFRS / [[:de:International Accounting Standards IAS/IFRS|International Accounting Standards IAS/IFRS'''<br><br />
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.<br />
<br />
Recently the IAS-rulework has been renamed to IFRS International Financial Reporting Standards.<br />
<br />
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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=IGC&diff=439IGC2010-12-13T14:35:27Z<p>Markus Berger-Vogel: /* International Group of Controlling IGC / International Group of Controlling (IGC) */</p>
<hr />
<div>== <span style="color:black">International Group of Controlling IGC</span> / [[:de:IGC|International Group of Controlling (IGC)]] ==<br />
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:<br />
<br />
<br />
{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"<br />
|-<br />
| '''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.'''<br />
<br />
<br />
*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.<br />
<br />
*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.<br />
<br />
*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.<br />
<br />
*[[Controller]]s provide all relevant controlling-information to managers.<br />
<br />
*Controllers develop and maintain the [[controlling]] systems.<br />
<br />
<br />
Controllers are thus internal consultants to all decision-makers for questions in planning, performance and accounting.<br />
|-<br />
|}<br />
<br style="clear:both;" clear="all" /><br />
<br />
<br />
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.<br />
<br />
<br />
Dkfm. Dr. Wolfgang Berger-Vogel<br><br />
Chairman of the IGC International Group of Controlling,<br><br />
Linz, Austria<br><br />
in spring 2010<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=IGC&diff=438IGC2010-12-13T14:34:31Z<p>Markus Berger-Vogel: /* International Group of Controlling IGC */</p>
<hr />
<div>== International Group of Controlling IGC / [[:de:IGC|International Group of Controlling (IGC)]] ==<br />
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:<br />
<br />
<br />
{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"<br />
|-<br />
| '''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.'''<br />
<br />
<br />
*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.<br />
<br />
*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.<br />
<br />
*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.<br />
<br />
*[[Controller]]s provide all relevant controlling-information to managers.<br />
<br />
*Controllers develop and maintain the [[controlling]] systems.<br />
<br />
<br />
Controllers are thus internal consultants to all decision-makers for questions in planning, performance and accounting.<br />
|-<br />
|}<br />
<br style="clear:both;" clear="all" /><br />
<br />
<br />
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.<br />
<br />
<br />
Dkfm. Dr. Wolfgang Berger-Vogel<br><br />
Chairman of the IGC International Group of Controlling,<br><br />
Linz, Austria<br><br />
in spring 2010<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=International_Group_of_Controlling_IGC&diff=437International Group of Controlling IGC2010-12-13T14:22:01Z<p>Markus Berger-Vogel: /* International Group of Controlling IGC / International Group of Controlling (IGC) */</p>
<hr />
<div>== <span style="color:black">International Group of Controlling IGC</span> / [[:de:International Group of Controlling (IGC)|International Group of Controlling (IGC)]] ==<br />
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:<br />
<br />
<br />
{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"<br />
|-<br />
| '''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.'''<br />
<br />
<br />
*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.<br />
<br />
*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.<br />
<br />
*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.<br />
<br />
*[[Controller]]s provide all relevant controlling-information to managers.<br />
<br />
*Controllers develop and maintain the [[controlling]] systems.<br />
<br />
<br />
Controllers are thus internal consultants to all decision-makers for questions in planning, performance and accounting.<br />
|-<br />
|}<br />
<br style="clear:both;" clear="all" /><br />
<br />
<br />
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.<br />
<br />
<br />
Dkfm. Dr. Wolfgang Berger-Vogel<br><br />
Chairman of the IGC International Group of Controlling,<br><br />
Linz, Austria<br><br />
in spring 2010<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=International_Group_of_Controlling_IGC&diff=436International Group of Controlling IGC2010-12-13T14:10:13Z<p>Markus Berger-Vogel: /* International Group of Controlling IGC */</p>
<hr />
<div>== International Group of Controlling IGC / [[:de:International Group of Controlling (IGC)|International Group of Controlling (IGC)]] ==<br />
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:<br />
<br />
<br />
{| border="1" cellspacing="0" cellpadding="2" align="right" style="border-collapse:collapse;"<br />
|-<br />
| '''Controllers design and accompany the management process of goal-finding, planning and controlling and thus are co-responsible for reaching the objectives.'''<br />
<br />
<br />
*Controllers ensure the transparency of business results, finance, processes and [[strategy]] and thus contribute to higher economic effectiveness.<br />
<br />
*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.<br />
<br />
*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.<br />
<br />
*[[Controller]]s provide all relevant controlling-information to managers.<br />
<br />
*Controllers develop and maintain the [[controlling]] systems.<br />
<br />
<br />
Controllers are thus internal consultants to all decision-makers for questions in planning, performance and accounting.<br />
|-<br />
|}<br />
<br style="clear:both;" clear="all" /><br />
<br />
<br />
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.<br />
<br />
<br />
Dkfm. Dr. Wolfgang Berger-Vogel<br><br />
Chairman of the IGC International Group of Controlling,<br><br />
Linz, Austria<br><br />
in spring 2010<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Costs_of_goods_sold&diff=435Costs of goods sold2010-12-13T13:58:46Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Costs of goods sold / [[:de:Herstellkosten/Herstellungskosten|Herstellkosten/Herstellungskosten]]'''<br><br />
Costs of goods sold (or costs of sales) show the total product or service costs when all function costs that are involved in the production of the finished product are included. These are principally:<br />
<br />
*the direct material costs and the proportional manufacturing costs – their sum is also known as the product costs,<br />
*the material overheads, the structure costs of purchasing and warehousing,<br />
*the manufacturing structure costs, the structure costs of production planning and control, of construction and development (if not directly attributable to the specific order) and the costs of administration.<br />
<br />
The term Costs of Goods Sold generally means the full Costs of Goods Sold, i.e. the costs of all functions involved in the output of goods or services. These are required for the drawing up of the profit & loss statement based on full costs and eventually for the drawing up of the balance sheet (inventory evaluation). The proportional costs of goods sold, or simply product costs are required for the calculation of the contribution margin I.<br />
<br />
The term „Herstellungskosten“ is a concept from the German Commercial Code (HGB § 255, para. 2).<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Marginal_costs&diff=434Marginal costs2010-12-13T13:56:37Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Marginal costs / [[:de:Grenzkosten|Grenzkosten]]'''<br><br />
Marginal costs are the manufacturing costs of the last manufactured unit. As long as the total cost graph of a product or cost center is linear, the marginal costs for each manufactured piece are the same and correspond to the [[proportional costs]].<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Period_costing_and_cost_of_sales_method_in_external_accounting&diff=433Period costing and cost of sales method in external accounting2010-12-13T13:54:45Z<p>Markus Berger-Vogel: /* IGC-DEFINITION */</p>
<hr />
<div>== IGC-DEFINITION ==<br />
'''Period costing and cost of sales method in external accounting / [[:de:Gesamtkostenverfahren GKV und Umsatzkostenverfahren UKV in der externen Rechnungslegung|Gesamtkostenverfahren GKV und Umsatzkostenverfahren UKV in der externen Rechnungslegung]]'''<br><br />
The income statement is presented either by the period costing method or by the cost of sales method. Both methods produce the same result. In the period costing method the sales of a period are compared to the total expenditures (consumption) of the same period. Since the sales are market-oriented and the total expenditures stand for the value produced, there is a difference if the production value of the units sold does not match that of the units produced. This difference shows up in the inventory changes of finished goods, half-finished goods and work in progress.<br />
<br />
<br />
'''Period costing method under IFRS:'''<br />
<br />
[[Image:Period costing.png|x250px|]]<br />
<br />
The first three positions of the period costing method combined are called total output. This is of interest in the balance sheet analysis.<br />
In the cost of sales method the sales of a period are directly confronted with the [[Costs of goods sold|production costs]] of those sales. The accruals thus take place directly in the stocks. Hence the total output of a period is not recognizable anymore in the income statement. Otherwise, the accrual positions for inventory changes are cancelled. The production costs under [[International Accounting Standards IAS / IFRS|IFRS]] include the [[proportional costs]] as well as the [[Structure costs|structural costs]] accruing for production, purchasing and material handling, including the appropriate depreciations, maintenance costs and the cost of management and administration of the functions mentioned above.<br />
Period costing presentation of the income statement is more common in the German-speaking area, the cost of sales method is popular among listed companies and rather in the Anglophone world.<br />
<br />
<br />
'''Cost of sales method under IFRS:'''<br />
<br />
[[Image:Cost of sales.png|x250px|]]<br />
<br />
In contrast to this accounting-driven representation, in management accounting also standard values (variance analysis) and imputed evaluations are applied in order to support decision-taking.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Fixed_Cost&diff=432Fixed Cost2010-12-13T13:49:57Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Fixed costs / [[:de:Fixkosten|Fixkosten]]'''<br><br />
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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
<br />
<br />
Fixed Cost <br />
From ControllerWiki<br />
(unreviewed)<br />
Jump to: navigation, search<br />
<br />
Fixed Cost – in relation to a resource, it’s a cost that does not change with changes in level of resource output.<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]<br />
<br />
<br />
== Author ==<br />
<br />
Zieliński Tomasz</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Forecast&diff=431Forecast2010-12-13T13:46:13Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Forecast / [[:de:Erwartungsrechnung|Erwartungsrechnung]]'''<br><br />
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.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Potentials_for_success&diff=430Potentials for success2010-12-13T13:44:11Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Potentials for success / [[:de:Erfolgspotentiale|Erfolgspotentiale]]'''<br><br />
Critical success factors are those variables, whose characteristics contribute largely to market success, and which are essential if a company aims to be a successful competitor within its industry. They are derived from industry and competition analysis as well as from market surveys, customer opinion polls and data banks, etc.<br />
Potentials for success are a business’s strengths and at the same time its critical success factors. This is best described as the sum of all specific product and market preconditions necessary for success (especially capacities and [[core competence]]s). These have to be available before success can be realised. The development and maintenance of market positions – and hence the creation of new products and / or markets – are of the first importance here.<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Experience_curve&diff=429Experience curve2010-12-13T13:42:17Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
<hr />
<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Experience curve / [[:de:Erfahrungskurve|Erfahrungskurve]]'''<br><br />
The experience curve is based on empirical observations that when the accumulated volume of goods produced is doubled, the total costs per unit may be reduced by between 20 and 30 percent. The experience curve effect describes a potential for cost reduction, which is attainable through conscious cost management, but which by no means happens automatically.<br />
<br />
[[Image:Experience curve.png|x300px|]]<br />
<br />
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
<br />
== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Decision_accounting&diff=428Decision accounting2010-12-13T13:37:56Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
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<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Decision accounting / [[:de:Entscheidungsrechnung|Entscheidungsrechnung]]'''<br><br />
Accounts that are prepared to help managers to take decisions are called decision accounts. It is of central importance for the quality of such decision accounts, that only those costs, revenues and volumes should be included that can really and directly be changed by the decision to be taken. It is therefore worth discovering which additional costs are incurred by any given decision, as well as those costs that are saved. Also, it is crucial to know what additional revenue comes in or how much revenue is lost as a consequence of the same decision. So it is always the differences from the initial situation that are relevant to decisions, i.e. revenue and cost amounts, which are changed precisely by that decision. Through an increase in sales additional revenue is generated, but also additional revenue deductions are incurred such as discounts, bonuses and commissions. With changes in volume, on the one hand, costs either increase or decline, while on the other hand the costs change as the structure of the business undergoes adjustments. When production or sales volumes change, more (or fewer) [[proportional costs]] are incurred, while, where structures are readjusted, blocks of structure costs are built up or dismantled. From this basic insight into cost behaviour we can draw an important conclusion: structure costs allocated by a key are never relevant for decision-making.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogelhttps://www.controlling-wiki.com/en/index.php?title=Overheads/indirect_costs&diff=427Overheads/indirect costs2010-12-13T13:32:59Z<p>Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */</p>
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<div>== IGC-DEFINITION (abbreviated) ==<br />
'''Overheads/ indirect costs / [[:de:Gemeinkosten|Gemeinkosten]]'''<br><br />
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.<br />
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from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]<br />
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== Source ==<br />
<br />
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]</div>Markus Berger-Vogel