Controlling I - Connexions

Module I - goals:

•Presents an integrated system of modules of the controller’s job;
•Demonstrates the structure and the connection between the most important controlling tools;
•Provides case studies, exercises and role-plays for training in the organization of the controlling process;
•Gives instructions for the function and the techniques of the controller’s job which can be introduced and practised in every existing organization structure.

 

After studying this course you will:

 

have been introduced to scope and principles of Controlling;

know how relates to financial accounting;

understand key themes of Controlling, such as future orientation, goals, economic reality, decision making;

understand why the study of cost behaviours is necessary;

understand the main approaches to cost forecasting;

knew that planning and control are related;

understand budgeting and budgetary planning;

knew the major benefits of budgeting;

understand the inter-relationships between budgets;

be able to define basic cost accounting terminology;

understand the principle of control;

knew how overheads are established and use in product costing;

knew that flexible budgets are necessary for control to be effective;

to be able to design a budgetary control report;

understand the technique of standard costing and its objectives;

understand the principle of stock control ;

knew the relationship between opportunity loss and expected value for decisions;

understand marginal cost and cost-volume-profit analyses;

have been introduced to long-run decision making or investment appraisal;

understand the benefits and problems of decentralisation;

knew what ration analysis is and why it is used;

job description for Controller;

Manager’s and controller’s function.

 
  

Contents:

Controlling concept

•Controlling definition
•Relationship of Controlling and Financial Accounting
•Major theme of Controlling
•The process of setting objectives, planning and controlling
•Future orientation, economic reality, goal congruence - information systems
•Some basic definition
•Establishing overheads and absorption costing
•Marginal costing and absorption costing
•Stocks and marginal costing
•Element of costs- material, labour and overheads
•Costing methods and process costing
•Traditional product costing vs. Activity-Based Costing (ABC)
•Cost classification (short-term variable costs, long-term variable costs and fixed costs)
•Formulation of corporate philosophy and elaboration of the reasoning behind the profit target
•Tasks and objectives.
•Ethics standards of Controller
 
Corporate Philosophy & Planning
 
 •The system of the management account with contribution margins presented in stages
•What is system
•Calculation of product costs
•Interpretation of the contribution margins for sales planning
•The management account and its sub-systems - Controller′s cost-cube
•The "accounting panorama"
•Planning definition and long-term strategic planning
•How is the corporate plan developed?
•Type and sources of planning information
•Advantages and disadvantages of Corporate Plan
•Corporate Plan and budgeting
•Profit Centres and divisions
•The principle of organizing divisions
•The system of the profit centre
•Points to consider when introducing a divisional organization
•Transfer-prices between profit centres
 
Budgeting


 •Budgetary planning
•Clarification of authority and responsibility
•Communication and control
•Motivation and goal congruence
•Performance evaluation
•Preparing the budget - outline of the budgetary process
•Budgetary relationships
•Categories of budgets
•Sales, production, human resources and related budgets
•Budgets determined by policy (capital expenditure, research and development, advertising, etc)
•Cash budget
•Budgets and flexible budgets
•Budget variability and uncertainty
  
Control & Budgetary Control
 
 •Control defined
•Responsibility accounting and budgetary control
•Flexible budgets for control
•Controllable and non-controllable items (the hierarchy of control)
•Variance analysis with sales contribution margins and costs of the sales organization in the profit centre
•The flexible performance and cost budget in the production function
•Product/variable and structure/fixed costs in the budget
• Variance analysis for the production cost budget
•Variance analysis and the evaluation of performance
•How to discuss a variance analysis
  
Controller Reports
 
 •The system of the management account as nucleus for controller reports
•Psychological aspects in controller’s reporting
•Effective control reports
•The significance of variances - control vs continuous improvement
•Budgets and standards as ranges
•Setting control limits
•Variance analysis and forecast
•Behavioural aspects of budgeting
•Budget as targets
•Motivation
•Participation in budgeting
•Goal congruence
•Budgeting and performance evaluating- The controller as economic "companion"
  
Controller Organization
 
 •Organization of the accounting department: What functions belong to the Controller?
•Job description for the controller
•Can you install a controller as "staff" without sub-structure?
•Central and divisional controller.
 
The training session is based on the KAIZEN JAPANEESE Management (continuous improvement of business processes and loss reduction). The training is a part of the Productivity training group.
 
The training provides a step by step theoretical and practical approach to the principles, techniques and tools. Participants will be involved in practical applications, role plays, analysis of specific cases to be helped to acquire basic controlling skills.
 
The training methodology:
The training session offers a theoretical and a practical approach. The training methodology includes: PowerPoint presentation, questions / answers, discussions in small groups, reminders, practical examples, demonstrations, case studies, video demonstration, simulations, role plays, participants learning from other participants, brainstorm, solving practical issues raised by participants. The training is based on the KAIZEN JAPANESE management philosophy (continuous improvement of business processes and reducing losses). The training is part of the suite of Productivity courses provided by Exegens.
 
In house training:
The training ”Controlling. The business profitability” is also available in ”in-house” sessions. Companies must have a certain number of participants or require different types of courses. The cost advantage and the possibility to discuss and solve company specific problems during the training session are two big benefits for such kind of trainings. For details, please view the Exegens training offer.
 
Consulting services:
Exegens also offers consulting services  to design and implement a Performance Management System, helping clients to establish simple and effective directions to increase Productivity (up to 150% of staff, equipment, utilities, materials, logistics and storage), to improve the System of Budgeting and Cost Calculation, to underlie the Right Number of Employees, to have a great Benckmarking and Best Practices system for designing a performance reporting system through the Balanced Scorecard. For details, please consider the Exegens consulting offer.
 
Contact us to learn more about how we can help your organization with our Controlling consulting and public/ in house training services.