Transcript Management Accounting Methods In Industrial Praxis Kelly Grunewald Ana Ely Helena Aschenbrennerova Management Accounting Concerned with providing information to managers for use in planning and controlling operations and.

Management Accounting
Methods In Industrial Praxis
Kelly Grunewald
Ana Ely
Helena Aschenbrennerova
Management Accounting
Concerned with providing information to
managers for use in planning and controlling
operations and in decision making
Emphasis on future decisions
Relevance and flexibility of data (need not follow
GAAP)
Production schedules and pricing strategies
Internal usage only
Chosen methods
Balanced Scorecard
Breakeven Analysis
Financial
Performance
measures
Non-financial
performance
measures Economic
Value Added - EVA
Total Quality
Management,
Indicator EFQM
Breakeven analysis
Cost classification (Fixed vs. variable)
Fixed costs/(Sales price – variable costs)
After breakeven point, net income
increases by unit contribution margin
Skoda Machine Tool
EVA
Economic value added focuses on
measuring the creation of value from
operations as part of the periodic change
in the value of operating invested assets in
place.
EVA = (rate of return - cost of capital) x
economic capital
Non-financial performance
measures
Nonfinancial factors relate to the
following functions (more commonly
used in Europe)
– manufacturing and production
– sales and marketing
– people
– research and development
EFQM
Very used and popular in Czech Republic
Results Orientation
Customer Focus
Leadership & Constancy of Purpose
Management by Processes & Facts
People Development & Involvement
Continuous Learning, Innovation & Improvement
Partnership Development
Corporate Social Responsibility
Financial Indicators
EPS, Price-Earnings Ratio, Return on
Assets
Long-term indicators
– Times interest earned, debt-to-equity
Short-term indicators
– Current ratio, quick ratio, A/R turnover,
inventory turnover
Miller
SABMiller’s Strategy

Drive Volume and Productivity

Optimize and expand existing
positions

Grow its brands in the
international premium beer segment
Mainstream
Malt Liquors
Worthmore
Economy
Balanced Scorecard
Balanced Scorecard
Four Performance Measures
– Financial perspective (the company’s bottom line),
– Customer perspective (customer satisfaction,
retention percentage, number of customer
complaints)
– Internal business process perspective (reduce
delivery time to customers)
– Learning and growth perspective (employee turnover
rates and employee suggestions implemented)
Must utilize overall company strategy
SABMiller
EBITA
– Volume, Pricing, Price Promotions
– Brand, Package, and Geographic mix
– Cost of sales
– Fixed Marketing Expenses
Marginal Contribution/barrel
– Sales minus price promotions, excise taxes,
cost of sales, and diversions
Skoda Machine Tool Ltd.
ŠKODA concentrates its efforts on developing highly
sophisticated machines with NC systems
The conceptual solution of the ŠKODA machine tools
makes it possible to design complete workstations for
special technological purposes
ŠKODA stresses permanent technical development.
Skoda Machine Tool
Horizontal boring machines
–
–
–
–
–
–
IFVW 206
UFK 1000 NC
IWD 700 A
IFVW 102
IFVW 112
IFVW 203
Lathers
Special Machine TOOLS
– Clamping floor plates
– Special machining centers
– Rotary tables
Practical methods used by
Skoda
Breakeven analysis
Financial indicators
Non-financial indicators
Marginal contribution
Management
Accounting
method
SAB MILLER
SKODA
MACHINE
TOOL, Ltd.
Marginal Contribution
x
EBITA
x
Break Even Analysis
x
x
Financial Indicators
x
x
Non – Financial Indicators
x
x
EVA
x
BSC
x
SAP (information system)
x
x