Controlling Flashcards
(18 cards)
Controlling
- Set targets
- measure performance
- aid in decision making
- support management
- manage tools of economic success
Internal Accounting
- Individual performance of products
- profitability
- cost centre tracing
- support target setting
Cash flow from operating activities
+ Sales, rent, interest
- Rent, Salaries, taxes, salaries
Cash flow from investing activities
+Interest, Dividends
- property, investments
Cash flow financing activities
+issuing shares, debt
-amortizing debt, dividend payments
Revenue Accounting
Find out what product generates what profit
Cost accounting
Find out how much money can go into the production of products
Profitability accounting
Product = Cost object
Contribution 1
Product revenue - direct product costs
contribution of individual flights to operating profit
Allocating indirect costs
Must be collected at direct cost centers first and can later be allocated to product/cost objects
Contribution 2
CM 1 - Direct Cost Centre
Contribution of individual routes to overall profitability
Investment with lower return than expected
Shareholders will sell their shares
Investment with higher return than WACC
Share price increases, shareholders happy
Dividend Payment
Should be reinvested to get higher return - shareholders prefer security.
Indirect Non Operational Costs
All costs other than direct product costs, indirect product cost, indirect operational cost.
Division overhead costs
Costs that cannot be allocated to direct cost centers
Contribution 3
CM 2 Division overhead costs
Indicates performance of divisions
Company overhead costs
Indirect costs which cannot be allocated direct cost centers via cost drivers