Management Control Systems

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Management Control Systems by Mind Map: Management Control Systems

1. Financial Statements

1.1. Income Statement

1.1.1. Revenue

1.1.2. (Cost of sales)

1.1.3. Gross profit

1.1.4. Other op. revenue

1.1.5. (Distribution Costs)

1.1.6. (Administrative expenses)

1.1.7. (Other Operating costs)

1.1.8. Operating Profit

1.1.9. Financial income

1.1.10. (Financial expense)

1.1.11. Net Profit

1.1.12. Discontinued operations

1.1.13. Earnings per share

1.2. Cash Flow Statement

1.2.1. Operating activities

1.2.2. Investment activities

1.2.3. Financing activities

1.2.4. Direct Method

1.2.5. Indirect method

1.3. Changes in Equity

1.3.1. Profit and loss of period

1.3.2. Items of income and expense that changes equity

1.3.3. Total income and expense of the period

1.3.4. Accounting policies that changed equity

1.4. Notes

2. ABC Costing

2.1. Cost Hierarchy

2.2. Steps

2.2.1. Identify activities

2.2.2. Assign costs to activities

2.2.3. Assign activities to products

3. Transfer pricing

3.1. Uses

3.1.1. Economic decisions by BU managers

3.1.2. Coordinate for global results

3.1.3. Performance of BU

3.1.4. Independence of BU

3.1.5. Tax Planning

3.2. Corporate and Business units

3.2.1. Importance of performances

3.2.2. Control performance at different lvl

3.2.2.1. Strategic

3.2.2.2. Business

3.2.2.3. Operational

3.3. Methods

3.3.1. Market Based

3.3.2. Cost Based

3.3.2.1. Full actual cost

3.3.2.2. Full Standard cost

3.3.2.3. Marginal cost

3.3.3. Negotiated

3.3.4. Dual

4. Balance Sheet

4.1. Assets

4.1.1. Current Assets

4.1.1.1. Cash

4.1.1.2. Accounts receivable

4.1.1.3. Inventories

4.1.1.4. Short term investments

4.1.1.5. Other current assets

4.1.2. Non Current Assets

4.1.2.1. Property plant and equipment

4.1.2.2. Equity Investments

4.1.2.3. Goodwill

4.1.2.4. Other intangibles

4.1.2.5. Other Non current assets

4.1.3. Assets classified as held for sale

4.2. Liabilities

4.2.1. Current Liabilities

4.2.1.1. Accounts payable

4.2.1.2. Bank obligations

4.2.1.3. Bonds

4.2.1.4. Advanced payment for WIP

4.2.1.5. Current Tax Liabilities

4.2.1.6. Others

4.2.2. Non Current Liabilities

4.2.2.1. Bonds

4.2.2.2. Bank Obligations

4.2.2.3. Pensions

4.2.2.4. Deferred tax obligations

4.2.2.5. Povisions for liabilities and charges

4.2.3. Liabilities tied to assets held for sale

4.3. Equity

4.3.1. Capital

4.3.2. Reserves

4.3.3. Profit or loss brought foward

4.3.4. Profits of the year

5. Cost Center

5.1. Total Cost Variance

5.1.1. Efficiency

5.1.1.1. Materials

5.1.1.1.1. Unitary cost of materials

5.1.1.1.2. Use of materials

5.1.1.2. Labour

5.1.1.2.1. Hourly rate

5.1.1.2.2. Number of hours

5.1.1.3. Variable OVH

5.1.1.4. Fixed OVH

5.1.2. Volume

6. Financial accounting

6.1. Concepts

6.1.1. Accrual principle

6.1.1.1. Accrual event

6.1.1.2. Financial event

6.1.2. Fair Value

6.1.3. Cost Model

6.1.4. Impairment test

6.1.5. Depreciation

6.1.6. Financial Assets

6.1.6.1. Fair value through Profit or Loss

6.1.6.1.1. Designated

6.1.6.1.2. Held for trading

6.1.6.2. Loans and receivables

6.1.6.3. Held to Maturity

6.1.6.4. Available for Sale

6.1.7. Financial Liabilities

6.1.7.1. Fair Value through Profit or Loss

6.1.7.1.1. Designated

6.1.7.1.2. Held for trading

6.1.7.2. Others

6.1.8. Leasing

6.1.8.1. Financial

6.1.8.2. Operational

6.2. Consolitated FS

6.2.1. Control types

6.2.1.1. Subsidiary

6.2.1.2. Associate

6.2.1.3. Joint Venture

6.2.2. Theories

6.2.2.1. Propietary Company theory

6.2.2.2. Parent theory

6.2.2.3. Entity Theory

6.2.3. Previous steps

6.2.3.1. Armonization of Accounting rules

6.2.3.2. Delete of equity investment

6.2.3.3. Delete of intra company receivables

6.2.4. Methods

6.2.4.1. Proportionate consolidation

6.2.4.2. Line by Line comparison

6.2.4.3. Equity Method

7. Indicators

7.1. Financial

7.1.1. Based on Financial statements

7.1.1.1. Traditional

7.1.1.1.1. ROI

7.1.1.1.2. ROA

7.1.1.1.3. ROE

7.1.1.1.4. ROCE

7.1.1.1.5. RONA

7.1.1.1.6. ROIC

7.1.1.2. Innovative

7.1.1.2.1. EVA

7.1.1.2.2. Accrual

7.1.1.2.3. Cash

7.1.2. Value Based

7.1.2.1. Total Business Return

7.1.2.2. Market Value Added

7.1.2.3. Total Shareholder return

7.2. Non Financial

7.2.1. Performance

7.2.1.1. Time

7.2.1.1.1. Internal times

7.2.1.1.2. Delivery of products (External times)

7.2.1.1.3. Time to develop products

7.2.1.2. Quality

7.2.1.2.1. Internal

7.2.1.2.2. External

7.2.1.3. Productivity

7.2.1.4. Flexibility

7.2.1.4.1. Quality

7.2.1.4.2. Quantity

7.2.1.5. Environmental

7.2.2. Resources

7.2.2.1. Technology

7.2.2.2. Human resources

7.2.2.3. Image

7.3. Risk

8. General concepts

8.1. Goals of MCS

8.1.1. Decision making for maximizing NPV

8.1.1.1. Goal Definition

8.1.1.2. Measurement

8.1.1.3. Variance Analysis

8.1.1.4. Corrective actions

8.1.2. Motivation and Orientation

8.1.2.1. Motivation: Equity theory

8.1.2.2. Orientation

8.1.2.2.1. Expectations Theory

8.1.2.2.2. Goal Setting Theory

8.1.3. External Accountability

8.1.3.1. Financial reports

8.1.3.2. Corporate governance reports

8.1.3.3. Environmental reports

8.1.3.4. Sustainability reports

8.1.4. Control the company( internal accountability)

8.2. Requirements

8.2.1. Measurability

8.2.2. Completeness

8.2.3. Timeliness

8.2.4. Long Term

8.2.5. Responsibles

8.2.6. Stability across time

8.3. Evolution

8.3.1. Scope

8.3.2. Performance measurement

8.3.3. Reporting

8.3.4. Budgeting

8.3.5. Supporting processes

8.4. WACC

9. Financial Statement Analysis

9.1. Liquidity

9.1.1. Current Ratio

9.1.2. Acid Test

9.1.3. Net Working Capital

9.1.4. Cash Flow Adequacy

9.1.5. Free Cash Flow

9.2. Financial structure

9.2.1. Incidence of assets and liabilities

9.2.2. Independence ratio

9.2.3. Financial leverage

9.2.4. Non current asset coverage

9.2.5. Net financial debt

9.3. Profitability

9.3.1. ROI

9.3.2. ROE

9.3.2.1. ROA

9.3.2.1.1. ROS

9.3.2.1.2. Asset turnover

9.3.2.2. TL/E

9.3.2.3. r

9.3.2.3.1. Average net cost of debt

9.3.2.4. s

9.3.2.4.1. Effect of tax

9.3.2.4.2. Effect of discontinued operations

9.4. Growth

9.4.1. Assets growth

9.4.2. Equity Growth

9.4.3. Self financing

10. Cost accounting

10.1. Functions

10.1.1. Inventory Valuation

10.1.2. Decision making

10.1.3. Info for planning, control and performance

10.2. Classification

10.2.1. Direct and Indirect

10.2.2. Period and Product

10.2.3. Fixed and Variable

10.2.4. Avoidable and Unavoidable

10.2.5. Prime cost

10.2.6. Conversion Cost

10.2.7. Selling Cost

10.3. Cost object

10.4. Cost allocation

10.4.1. Traditional methods

10.4.1.1. Job order costing

10.4.1.1.1. Documents

10.4.1.2. Process costing

10.4.1.3. Operation Costing

10.5. Cost Acumulation

10.6. Cost Accounting System

10.6.1. Cost configuration

10.6.1.1. Direct costing

10.6.1.2. Full costing

10.6.2. Cost Evaluation

10.6.2.1. Actual Cost

10.6.2.2. Standard Cost

10.6.3. Cost Allocation

10.6.3.1. Direct Systems

10.6.3.2. Step Down Systems

11. Investment appraisal

11.1. NPV

11.2. PI

11.3. IRR

11.4. Discounted Payback Time

11.5. NCF

12. NPV and TV

12.1. Calculating NPV

12.1.1. NCF

12.1.1.1. Simplified

12.1.1.2. Considering Banks

12.1.1.2.1. K

12.1.1.2.2. NCF

12.1.1.3. Considering Taxes

12.1.2. Competitive analysis

12.1.2.1. Value Pentagon

12.1.2.1.1. Market Value

12.1.2.1.2. As Is value

12.1.2.1.3. Value after internal improvements

12.1.2.1.4. Value after external changes

12.1.2.1.5. Restructured value

12.1.3. TV

12.1.3.1. Perpetuity

12.1.3.2. Real Options

13. Reporting

13.1. Corporate cost allocation

13.1.1. Total

13.1.2. Parcial

13.1.3. None

13.2. Variance Analysis

13.2.1. Revenue Center

13.2.1.1. Total revenue variance

13.2.1.1.1. Volume

13.2.1.1.2. Price

13.2.2. Expense Center

13.2.2.1. Activity Based Method

13.2.2.1.1. Repetitive activities

13.2.2.1.2. Projects

14. Budgeting

14.1. Master Budget plan

14.1.1. Strategy

14.1.2. Operating Budgets

14.1.2.1. Revenue Budget

14.1.2.2. Production Budget

14.1.2.3. Operating Costs Budget

14.1.2.4. Selling and administrative expense budget

14.1.2.4.1. Period Costs

14.1.3. Capital Expenditure Budget

14.1.4. Financial Budgets

14.1.4.1. Cash Budget

14.1.5. Budgeted IS

14.1.6. Budgeted FS

15. Project and Product Life Cycle performance

15.1. Life cycle costing

15.1.1. Analogy

15.1.2. Parametrical

15.1.3. Industrial engineering

15.1.4. Whole life cycle

15.2. Target costing

15.2.1. Market analysis

15.2.2. Allowable cost

15.2.3. Design

15.2.3.1. Internal focus

15.2.3.2. External focus

15.3. Return map

15.3.1. TTM

15.3.2. BET

15.3.3. BEAR

15.3.4. Return Factor