Controlling is an important economic discipline and a key function of management. It is also crucial for the organizational success, because the absence of adequate control would lead to random actions and individuals would turn their attention to different and irreconcilable directions.
With respect to the outstanding importance of controlling, the aim of the present work is to introduce various instruments of controlling which relate to both operational as well as strategic levels of a company. The instruments and techniques that are considered in more detail here are activity based costing, benchmarking, gross margin analysis and break-even analysis.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Introduction
- Problem statement
- Methodology and structure of the work
- Terminology and functions of controlling
- Levels of controlling
- Functions of controlling
- Strategic Instruments of controlling
- Activity based costing
- Operative instruments of controlling
- Gross margin accounting
- Break-even analysis
- Summary and conclusion
- Bibliography
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to introduce various controlling instruments applicable at both the strategic and operational levels of a company. It critically evaluates specific instruments to improve the effectiveness of entrepreneurial activity at both levels, focusing on activity-based costing, benchmarking, gross margin analysis, and break-even analysis.
- The definition and explanation of "control" within a business context.
- An analysis of different levels and functions of controlling within a company.
- An evaluation of the suitability of strategic and operational controlling instruments for effective control and decision-making.
- The comparative importance of strategic and operational level control for a company's success.
- A detailed examination of specific controlling instruments (activity-based costing, benchmarking, gross margin analysis, and break-even analysis).
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces controlling as a crucial economic discipline and key management function, vital for organizational success by coordinating activities and achieving objectives. It highlights the interconnectedness of strategic, tactical, and operational levels in controlling, emphasizing the importance of defining objectives and monitoring results for overall company success. The chapter lays out the work's aim: to present and analyze various strategic and operational controlling instruments and their effectiveness in decision-making.
Terminology and functions of controlling: This chapter delves into the definition and explanation of controlling, exploring its various levels (strategic, tactical, and operational) and functions. It establishes the framework for understanding how these levels interact and contribute to the overall control process within an organization. The chapter emphasizes the importance of a clear definition and distinction of objectives, as well as the process of monitoring results in achieving the overall goals of the organization.
Strategic Instruments of controlling: This chapter focuses on strategic controlling instruments, providing a detailed analysis of activity-based costing. It explores how activity-based costing differs from traditional costing methods and how it can be used to allocate costs more accurately, leading to improved decision-making at the strategic level. This section likely examines the methods used for determining cost drivers and assigning costs appropriately to various activities or products. The importance of this detailed cost analysis for strategic decisions is explored.
Operative instruments of controlling: This chapter examines operational controlling instruments, specifically gross margin accounting and break-even analysis. The chapter likely details how these methods are used to monitor and manage the profitability of individual products or services, and provide insights into operational efficiency. It explains how break-even analysis helps determine the level of sales needed to cover costs and achieve profitability. It may delve into the calculations and interpretations involved in these methods and their application in daily operational decisions.
Schlüsselwörter (Keywords)
Controlling, strategic controlling, operational controlling, activity-based costing, benchmarking, gross margin analysis, break-even analysis, decision-making, organizational success, cost allocation, profitability analysis, operational efficiency.
Frequently Asked Questions: A Comprehensive Language Preview of Controlling Instruments
What is the purpose of this document?
This document provides a comprehensive preview of a work focusing on controlling instruments in business. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The aim is to offer a structured overview of the subject matter, suitable for academic analysis.
What topics are covered in this work?
The work covers various aspects of controlling, including definitions, levels (strategic, tactical, and operational), functions, and specific instruments. Key instruments analyzed are activity-based costing, benchmarking, gross margin analysis, and break-even analysis. The analysis emphasizes the application of these instruments for effective decision-making at both strategic and operational levels within a company.
What are the key objectives of the work?
The primary objective is to introduce and critically evaluate controlling instruments applicable at both strategic and operational levels. It aims to show how these instruments improve the effectiveness of entrepreneurial activity and contribute to a company's success. The work also analyzes the comparative importance of strategic and operational level control.
What specific controlling instruments are examined?
The document delves into four key controlling instruments: activity-based costing (strategic), benchmarking (implied, though not explicitly detailed), gross margin accounting (operational), and break-even analysis (operational). Each instrument's application and effectiveness in decision-making are analyzed.
How are strategic and operational controlling instruments differentiated?
While the preview doesn't explicitly detail the differentiation, it implies that strategic instruments like activity-based costing focus on long-term planning and resource allocation, while operational instruments such as gross margin accounting and break-even analysis concentrate on short-term performance monitoring and operational efficiency. The interaction and interdependence of both levels are emphasized.
What is the significance of activity-based costing?
Activity-based costing is presented as a strategic controlling instrument that offers more accurate cost allocation compared to traditional methods. This more accurate cost allocation aids in improved decision-making at the strategic level by providing a clearer picture of resource consumption and profitability.
What is the role of gross margin accounting and break-even analysis?
Gross margin accounting and break-even analysis are described as operational controlling instruments used to monitor and manage the profitability of individual products or services and assess operational efficiency. Break-even analysis, in particular, helps determine the sales volume needed to cover costs and achieve profitability.
What is the overall conclusion or takeaway from this preview?
The preview highlights the crucial role of controlling as a management function for organizational success. It emphasizes the interconnectedness of strategic, tactical, and operational levels in achieving objectives and the importance of employing appropriate controlling instruments for effective decision-making at each level.
What are the keywords associated with this work?
Keywords include: Controlling, strategic controlling, operational controlling, activity-based costing, benchmarking, gross margin analysis, break-even analysis, decision-making, organizational success, cost allocation, profitability analysis, operational efficiency.
- Citar trabajo
- Rima Hammoudeh (Autor), 2015, Decision making by using strategic and operational controlling instruments, Múnich, GRIN Verlag, https://www.grin.com/document/346475
