8. Management Accounting

Controlling Tasks - History

Controlling Definition

Controlling - Translation

Controlling Cycle

Controlling in BA

Definitions:
1) Finance
2) Decision Theory
3) Operations Research

Difference Financial and Management Accounting

Cost Accounting - Objectives

Cost Accounting - Field

Fundamentals: Level of operating assets

Costs vs Non-operating expenses

Definitions:
1) Cash-outflow
2) Expenses
3) Costs

Definitions:
1) Operating Expenses
2) Non-operating Expenses
3) Basic Costs
4) Outlay Costs
5) Extra Costs

Definitions of "costs":
1) Schmalenbach
2) Koch
3) Riebel

Production Function

Cost Function

Other cost functions:
1) Total Costs
2) Average costs (costs per unit)
3) Marginal Costs

Definitions:
1) Direct Costs
2) Common costs (overhead costs)
3) Variable costs
3) Fixed costs

More Definitions:
1) Artificial Common Costs
2) Stepwise adjustable costs
3) Special direct costs

Objectives of Cost Type Accounting

Type of used production factors

Operational functions

Way to allocate costs

1) Variability with activity level
2) Way to record costs
3) Way to handle in cost centre acc.

Chart of accounts for cost types

Fundamentals of Cost Type Accounting:
1) Clarity
2) Unity
3) Completeness
3) Efficiency

Documentation and recording of selected cost types: material costs:
1) Documentation

Documentation and recording of selected cost types: material costs
1) Inventory method
2) Sub-account method
3) Retrograde method
--> Valuation [leave this here?]

1) Personnel costs
2) Split of personnel into direct and common costs

Recording of selected cost types: service costs

Recording of selected cost types: imputed costs

Imputed Depreciations

Imputed costs: depreciations caused by
1) consumption
2) economic reasons
3) caused by time
-->Total effect

Types of depreciations:
1) Systematic (fixed assets)
2) Extraordinary (fixed & working assets)

Imputed costs: depreciations:
Preconditions

Methods of depreciation

Example "Linear Depreciation"

Misestimation of economic life

Possibilities of amendment for misestimation:
1) No change of depreciation
2) Recalculation based on book value
3) Recalculation based on initial value
4) Cause-fair amendment

Imputed Costs: Imputed Interest

Calculation of Imputed Interests
1) Capital Employed
2) Interest Rate
3) Calculation

Calculation of Imputed Interests: Way of Calculation
1) Interest on residual value
2) Interest on average value

Imputed Costs: Imputed Risks
1) Idea
2) Types

Imputed Costs: Imputed Rental Charges and Imputed Entrepreneurial Profit
1) Imputed Rental Charge
2) Imputed Entrepreneurial Profit

1) Outcomes of Cost Type Accounting
2) Objectives of Cost Centre Accounting

Objectives of Cost Assignment
1) Internal relations
2) Cost effectiveness
3) Calculation
4) Cost determination

Definition: Cost Centre

Cost Centre: Principles
1) Area of responsibility
2) Allocation base
3) Posting
4) Efficiency
5) -> Granularity of Cost Centres

(Potential) Factors for Cost Centres

Classifying Cost Centres
1) Functions
2) Way of Settlement
3) Cost Center Plan

1) Primary Cost Centre
2) Service Cost Centre

Cost Allocation Sheet (CAS)
1) Cost Centres
2) Primary common cost assignments
3) Secondary common cost assignments

Process CAS:
1) Assignment of Common Costs
2) Internal Service Calculation