Scarica Riassunti alcune lezioni managerial accounting e più Schemi e mappe concettuali in PDF di Cost Accounting solo su Docsity! (30/03/2023) Planning and control Control is different to controls the first is direction of future the second one is something in the past We need a set of tools to manage control Management Control System have Internal FOCUS → influence employees behaviour (cause is people in the organisation that make things happen) Managerial accounting sometimes became Responsibility accounting The manager’s decision have the responsibility about what happen The owner of the company aren’t able to control so they need to delegate responsibility to other people MANAGER Centralised vs Decentralised organisation (every company decide what is better for them) Benefits of decentralisation 1 - Top manager concentrate on strategy not in short term decision 2 - Lower level decision based on better info 3 - Lower managers can respond quickly to customers 4 - Decision-making authority take to job satisfaction Disadvantages of decentralisation 1- Lower level managers take decision without considering the big picture, some big aspect that are very important 2- Lack of coordination among autonomous managers 3- Lower level manager’s objective could be different from the organisation one 4- difficulties in spreading innovative ideas in the organisation Responsibility centres - Cost centres (responsible of the cost of cost) → production departments → Objective standard cost - >Discretionary centres (marketing for example) → I do not know in advance how much is the cost - Revenues centres (sales managers or agency) → Manage all those activities that are linked to sales - Profit centres (managers of a store) → Responsible for the sales and the cost needed to use the store - Investment centres (most autonomous) → They manage the money and the decision about in what invest, they control cost and revenue they generate Type of control of employees Useful but very expensive - Social norms and values (do not leave the office until the top manager has left) - Action (behaviour) controls - Results (output) control Information about results → Indirect control: focus on the result of the behaviour (easiest and cheaper control, based on monetary measures, flexible, unify decision criteria) All the mistakes made in the past is useful to avoid an other in the future The control is forward looking oriented → what is the object to achieve? Planning activity and control aren’t two different activities but is a different way of control - Feedback control - Feedforward control The control process 1. Strategic planning (forward looking control) ex. Profit, margin target Vision→Mission→Values Long term plans ( (19/04/2023) Planning and Control How to define the budget in the planning and control perspective? BUDGETING =strategic + control (Ineffective business planning is one of the 4 reason why business fails) → Budget is the main instrument of planning and control → Feedback and Feedforward→2 Feedforward control = budget targets with desired results (strategic) Feedback control = budgeting targets allineation with actual results (control) Planning = detailed quantitative budget plan - budget deals with the future (forecast about future-manager must see future) - need a vision (predict your future is to create it) - need a target - need to consider the context now and in the future in planning the activity - need to be ready to anticipate changement - avoid hastily decisions → there could be some conflicting interests among managers
