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Über dieses Buch

This textbook presents concepts and applications of Management Accounting, one of the main approaches used by management to support future organisational performance. It covers methods and instruments of management and cost accounting, cost management, and management control and is based on the German textbook "Interne Unternehmensrechnung" by Ralf Ewert and Alfred Wagenhofer (Springer).

The authors describe the managerial uses of accounting information, both for decision-making and decision-influencing, and provide a broad perspective on the subject combining the academic foundations of the field with recent cutting-edge research results. Moreover, traditions of German accounting theory and practice that are little known outside of the German-speaking countries are reflected in the book. With its unique approach based on information economics, the textbook offers a comprehensive and innovative presentation to a global audience.

Inhaltsverzeichnis

Frontmatter

1. Introduction to Management Accounting

Abstract
After studying this chapter, you should be able to:
Peter Schuster, Mareike Heinemann, Peter Cleary

2. Accounting Information and Production Decisions

Abstract
This chapter deals with production programme problems. The optimal solution is usually based upon costs and revenues in the traditional sense. The principles and procedures needed to maximise the company’s profit are at the centre of attention; thus, concepts of cost and revenue management (see also ► Chap. 5: ‘Cost Management’) and of the managerial use of accounting information (management accounting) for decision-making are also stressed.
Implicitly, certain data (e.g. costs of intermediate and final products, orders and production methods) are assumed for the decision problems described in this chapter. The determination of such data is part of cost accounting and therefore not discussed in this book.
Peter Schuster, Mareike Heinemann, Peter Cleary

3. Accounting Information and Pricing Decisions

Peter Schuster, Mareike Heinemann, Peter Cleary

4. Decision-Making Under Uncertainty

Abstract
Literature on decision-making in management accounting typically assumes certainty (certain expectations); this was also assumed in the previous chapters. There are several reasons for this, particularly the following two: 1. On the one hand, the management accounting system mainly serves as an instrument of information for the support of short-term decisions whose consequences are considered only for a specific period of time (e.g. a month, quarter or year). Here, it can generally be assumed that within such a time frame, forecast uncertainties are negligible, and therefore certain expectations are realistic. 2. On the other hand, management accounting data can explain the fundamental principles that remain valid under uncertainty.
Peter Schuster, Mareike Heinemann, Peter Cleary

5. Cost Management

Abstract
In previous chapters, costs were considered as given, and with it, their use for specific decisions, such as production programme or price decisions, were also considered. This chapter addresses the management of costs (and revenues). It deals with activities that influence costs for the improvement of the company’s economic viability. This influencing includes: Cost Level: Management of factor prices (e.g. by supplier selection or make-or-buy decisions) and of factor amounts (e.g. by quality management and rationalisation). Cost Structure: Changing the proportions of variable and fixed costs as well as direct and indirect costs (e.g. by capacity utilisation or outsourcing). Cost Behaviour Patterns: Avoidance of progressive cost patterns (e.g. by complexity reduction or increased use of identical components).
Peter Schuster, Mareike Heinemann, Peter Cleary

6. Variance Analysis and Control

Abstract
Control is a specific management function that follows planning, decision-making and execution. To fulfil this function, certain budgetary measures are compared with actual measures and the resulting difference is denoted as a variance.
Firstly, variances can be analysed according to their controllability. Uncontrollable variances arise from unpredictable random events; and are influenced by the fact that within an organisation, the result of any activity depends on environmental developments. Typical examples include external occurrences (e.g. economic crises or interest rate increases), intercompany occurrences (e.g. unexpected competition or inroads into the market) and inner-company occurrences (e.g. machine failure, loss of important workers or human error). Generally, controllable variances are avoidable variances and consequently receive most of management’s limited attention.
Peter Schuster, Mareike Heinemann, Peter Cleary

7. Coordination, Budgeting and Incentives

Peter Schuster, Mareike Heinemann, Peter Cleary

8. Transfer Prices and Cost Allocations

Peter Schuster, Mareike Heinemann, Peter Cleary

Backmatter

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