MANAGEMENT CONTROL

Prof. Silvio Modina

Associate Professor University of Milan Bicocca
MANAGEMENT CONTROL

MANAGEMENT ACCOUNTING

THE BUDGET

THE VARIANTS

Activity Based Costing

Historical Series MODEL COMPETITION

CONTROL
DI
MANAGEMENT

ORDINARY EXTRAORDINARY
ECONOMY
PRODUCTION MERGERS
COMMERCIAL LIQUIDATIONS
STRUCTURES SCISSIONS
SCORPORI
FINANCIAL ACQUISITIONS
QUOTE
HERITAGE
Quantity
production volumes, sales, hours, kilos .....

Values
data qualification
 ACCOUNTING
BUDGET
ANALYTICS

ACCOUNTING
GENERAL

ANALYSIS FOR
VARIANTS

BALANCE SYSTEM OF
REPORTING
 MANAGEMENT CONTROL

DEVELOPMENT REVELATIONS
DEL ANALYTICAL
BUDGET CONSUMPTIVE

PROCESSING
VARIANTS
ADMINISTRATIVE PHASE

ANALYSIS
DEVIATIONS
TECHNICAL PHASE

INTERVENTIONS
CORRECTIVES
OPERATIVE PHASE
 ACCOUNTING
ANALYTICS

MANAGEMENT TOOL

available

of the TOP MANAGEMENT

to ensure that resources are utilized

in the most EFFICIENT way and

EFFECTIVE

for the achievement of the OBJECTIVES

defined in the PLANS and in the

PROGRAMS
 PURPOSE OF THE
ACCOUNTING
ANALYTICS
1 EVALUATION OF ECONOMIC RESULTS
ACHIEVED

in TIME DETERMINATION of RESULTS

INFRANUAL ECONOMICS

Profitability CONTROL
in SPACE
of STRATEGIC BUSINESS AREAS,
PRODUCTS, SALES CHANNELS

2 DECISION SUPPORT

3 CONTROL OF COSTS, REVENUES AND

OF EFFICIENCY

4 DETERMINATION OF PRODUCT COSTS

 ACCOUNTING ACCOUNTING
GENERAL ANALYTICS

REVENUES AND COSTS REVENUES AND COSTS

ARE CLASSIFIED THEY ARE CLASSIFIED

ACCORDING TO THEM ACCORDING TO THEM

NATURE DESTINATION

SALES REVENUE
PURCHASE COSTS ACCORDING TO THE OBJECT
Personnel Costs ANALYSIS
COSTS of ENERGY
 COST

GENERAL CONT. ANALYTICAL ACCOUNT

USE OF FACTORS
PURCHASE of FACTORS for production purposes
PRODUCTIVE

COST of FACTORS COST of PRODUCTS

ACCOUNTING ACCOUNTING
GENERAL ANALYTICS

GENERAL ANALYTICS

•SOLO EXCHANGES between INTERNAL EXCHANGES

COMPANY AND THIRD PARTIES THE COMPANY

LATE TIMELY
ANNUAL INFRANNUAL LOGIC
THE CONNECTION SYSTEMS BETWEEN:

GENERAL ACCOUNTING

ANALYTICAL ACCOUNTING

DIVIDED SYSTEMS

Non-Accounting System
CONNECTED

INTEGRATED SYSTEM
DOUBLE INPUT

INPUT [Link]. CO. AN.

INPUT CO. AN. CO. GE.

INPUT

SUBSYSTEMS

[Link]. [Link].
 SYSTEM
RETRIBUTIVE

SURVEILLANCE
PRESENCES

ANAGRAFE
INPUT EMPLOYEES
(CDR, FUNCTION)

SPECIFIC OUTPUT
LABOR COST
FOR INSTITUTES CLOSING BALANCE
SUBSYSTEM
PROVIDENTIAL
PAY SLIPS WAGES CONTRIBUTIONS
COST OF LABOR
STATISTICS
STANDARD
PERSONNEL
ECC.

OUTPUT FLOWS ACCOUNTING

VERSE ANALYTICS

EMPLOYEES FINAL COSTS

INPS WORK
INAIL ACCOUNTING STANDARD COSTS
LIQUIDATIONS
GENERAL per center/position
PRICE VARIANTS
WORK
STIPENDS
CONTRIBUTIONS
•EMPLOYEES c/transitory
LIQUIDATIONS
TFR QUOTA
 CLIENT

REGISTRATION IDENTIFICATION DETAILS

CLIENT PRODUCTS

ORDER

ORDERED-ENGAGED

WAREHOUSE PHYSICAL INVENTORY

PROGRAMMED

PRODUCTION
D.D.T. INVOICE
PROGRAMMING.
PRODUCTION

REQUEST BUDGET
PAYMENT
SYSTEM
ADMINISTRATIVE
 PROGRAMMING
PRODUCTION

SYSTEM
Administrative
CENTERS OF
RESPONSIBILITY

DISTINCT
BASE

REQUESTS of
APPROVE.

INVOICE

YES
NO
Foreseen WAREHOUSE D.D.T.
FORESEEN ? A BUDGET
A BUDGET

NO YES [Link]
REVISION REVIEW

BUDGET

ORDER
 INPUT

COGE COAN

RESULT RESULT

RECONCILE
PRIMARY ATTRIBUTION

SECONDARY ATTRIBUTION
the REATTRIBUTION
the overturnings
 ATTRIBUTION
PRIMARY

MANUAL AUTOMATIC

Also for more HOOK

centers
AT VALUE CoGe-CdR Account
Article-CdR
entering the amount
Supplier-CdR
(a single CdR)
Inserting PERCENTAGE Based on tables
the percentages
and the centers

To be inserted or to be found
To be inserted QUANTITY in a specific archive

Prices of
Transfer
Methodology of overturnings

Procedure by which the costs are attributed

at a center of activity
they are transferred to production centers

The performance of the can be monitored.

auxiliary or common centers
(service center, maintenance,
testing, production direction, etc.
 CdR

CdR CdR
A VALUE (balance or by nature or by
type of registration

OVERTHROWS IN PERCENTAGE (from specific table)

IN QUANTITY (with manual entry

or from the archive

Prices of
Transfer
 BUDGET
Forecast
Hypothesis
Simulation
PIANO
Simplification of reality
PROGRAM
ACTIVITY
Integration
Objective
Target
Negotiation
Sharing
Motivation
CONTRACT
DECISION
APPROVAL
 BUDGET FORMATION PROCESS

FORECAST OF THE EXTERNAL SCENARIO

ANALYSIS OF THE INITIAL SITUATION OF THE COMPANY

DEFINITION OF MACRO OBJECTIVES

DEVELOPMENT OF THE DETAILED PLAN WITH

DEFINITION OF OBJECTIVES OF THE VARIOUS UNITS
ORGANIZATIONAL

VERIFICATION OF ECONOMIC/FINANCIAL FEASIBILITY

POSSIBLE REVISION OF OBJECTIVES

APPROVAL
 BUDGET INFORMATION FLOWS

BUDGET BUDGET
COMMERCIAL OF PRODUCTION

INDUSTRIAL COST

VOLUME PLAN
FOR SALE

PERSONNEL COST

BUDGET
DELLE
STRUCTURES

CONTINUE
ECONOMIC
 SALES PLAN

It is the expression of the company's commercial policies

It is necessary to take into account three variables.

PRODUCT GROUPINGS: SINGLE PRODUCT

PRODUCT LINE

SPATIAL LOCALIZATION SALES CHANNELS

OF SALES GEOGRAPHICAL AREA

MONTHLY
TEMPORAL LOCATION: QUARTERLY
ANNUAL
 Discounts

ON QUANTITIES
ON QUALITY

FINE SERIES
FINE SEASON
FINE OR RENEWAL OF ACTIVITY
HAPPY HOURS

LAUNCH (PRODUCT-ACTIVITY)

CONTRACTUAL (bonus-malus)

SCRAPPING

FISCAL
FINANCIAL
 COMMERCIAL BUDGET FLOW

List price
x Gross revenue budget
Sales volumes

Gross revenues
x Discount budget
% discount

Gross revenues
VOLUMES OF
SALE
- Net revenues budget
discounts

PRICES OF
SALE
E
DISCOUNTS

Sales volumes
x Cost budget of the
PRICE
price sold
PURCHASE
of purchase
 PRODUCTION BUDGET

PIANO DISTINCT
OPERATIONAL BASE
THE VOLUMES

DEI BUDGET STANDARD COST

PRODUCTIVE CENTERS FINISHED PRODUCTS
 CAKE PRODUCT

OPERATIONAL PLAN
100Cake
DIFFERENT BASE
2 eggs
NEEDS
1 kilo of flour
200 eggs
Standard price
100 kg of flour
Uova = 0,20
Farina = 0,80
2x0.20=0.40
1x0.80=0.80
0.40 + 0.80 = 1.20
200x0.20=40.00
100x0,80=80,00
1,20x100=120,00
40.00 + 80.00 = 120.00BUDGET
 REVENUES

less
less
VARIABLE PRODUCTION COSTS

INDUSTRIAL COSTS

MARGIN
INDUSTRIAL FIXED PRODUCTION COSTS VARIABLE COSTS

MARGIN OF
CONTRIBUTION
less

VARIABLE COMMERCIAL COSTS

menu
COMMERCIAL COSTS

MARGIN
COMMERCIAL FIXED COSTS
FIXED COMMERCIAL COSTS
RESULT
OPERATIONAL
less

STRUCTURAL COSTS
STRUCTURAL COSTS
RESULT
OPERATIVE
 VALUE
OF BUSINESS

VALUE
THE GOODS
MAT and IMM
INCOME
NET
MARCHI
Taxes
CLIENTELE Financial charges
Amortizations
HERITAGE Personnel costs
VALUE
ADDED
the effective yields

VALUE
ADDED
at market prices
VALUE VALUE
the FACTORS of the PRODUCTS
ACQUIRED SOLD
THE DEVIATION MUST ALWAYS BE
INTERPRETED AS

A negative economic event

FROM THE LACK OF CORRESPONDENCE

THE HYPOTHESIS AND REALITY EMERGE

AN ECONOMIC DAMAGE for THE COMPANY

A DEPARTURE
of LIGHT ENTITY

UNDER THE POINT OF VIEW

QUANTITATIVE

CAN BE
A weak signal

BUT WITH A HIGH

REFLECTION ON THE

DIRECTIONAL DECISIONS
 Activity Based Costing

1) Identification of activities and sub-activities;

2) Identification of consumed resources

from each activity;

3) Identification of cost objects for which

the activities are carried out;

4) Identification of the attribution mechanism

of the costs of the activity on the cost object (driver).

costs for product
nature
raw materials
cost
straight
direct work

performance cost
of third parties cost driver indirect
activity

depreciation

other costs
indirect