MM2: Management Accounting at Karlsruher Institut Für Technologie | Flashcards & Summaries

Lernmaterialien für MM2: Management Accounting an der Karlsruher Institut für Technologie

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen MM2: Management Accounting Kurs an der Karlsruher Institut für Technologie zu.

TESTE DEIN WISSEN
What are the three basic product strategies?
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TESTE DEIN WISSEN
Cost leadership (e.g. Ryanair)

Differentiation through features/brand (e.g. Apple)

Niche market (e.g. Fairphone)
Lösung ausblenden
TESTE DEIN WISSEN
Are bigger customers better customers?
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TESTE DEIN WISSEN
- Frequently untested and often wrong assumption

- Size of customer often leads to discount hurting revenue

-Often the most demanding of customers (e.g. high cost to serve)
Lösung ausblenden
TESTE DEIN WISSEN
Explain and outline the Transformation of the Management Accounting Profession
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TESTE DEIN WISSEN
-Self-Controlling: Democratizing of information, self service (mobil and realtime), Driver hierarchies with frontend
(SAP Digital Board Room)
-Data-Management: basis for analysis and simulation
-Analytics: Big data competence
-Agile monitoring: fast and lean, existing business modelss are threatened through digital alternatives
-Efficieny of management accounting: Automation, Self-controlling of standard analysis
-Business partnering: construktiv-critical accompanying of the digital transformation (Volatility of business models,
globalising the value chain), incentive between new and old models, change of culture (open exchange of
information and constructive critic)
Lösung ausblenden
TESTE DEIN WISSEN
What are the main Characteristics of MA?
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TESTE DEIN WISSEN
Improve products

Improve resource use (e.g. reducing overcapacity)

Improve services

Support decision making (e.g. investing & divesting)

Reduce costs —> Gain efficiency


Lösung ausblenden
TESTE DEIN WISSEN
Difference between out-of-pocket and accrual cost
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TESTE DEIN WISSEN
Out-of-pocket cost (cash accounting)
- incremental cost paid by cash
- records the cost when the payment is done

Accrual cost
- cost of resources during an extended time period
- Match expenses with related revenues
- records the cost when the deal is made
Lösung ausblenden
TESTE DEIN WISSEN
What’s the problem with ABC and how could that be solved?
Lösung anzeigen
TESTE DEIN WISSEN
- ABC does not seem to succeed in practice nor creating performance benefits

- It lacks conceptual clarity

- Problem: Creating value out of data 

- Only meaningful in combination with World Class Manufacturing (Cost, Quality & Time improvements)

—> Time Driven ABC, which looks on the consumption of individual resource cost per capacity unit
Lösung ausblenden
TESTE DEIN WISSEN
Explain the Balance Scorecard
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TESTE DEIN WISSEN

- Idea: Align strategic company goals with specific measures incl. balanced KPIs (vision and strategy most important)


- Performance measurement system —> Incentives


- Analogy: A couple of balanced measures at the same time are used by pilots throughout the flight



Leading indicators: Measures that identify future outcomes (More Modern: Customer centricity)


Lagging indicators: Outcomes of earlier management plans (More Modern: Financial outcomes)



Lösung ausblenden
TESTE DEIN WISSEN

Benefits and disadvantages of a Balance Score Card?

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TESTE DEIN WISSEN
++ Encourages employees to consider the impacts of their decisions (measured to strategy)

++ Works in various types of organizations (from NGOs to Banks)


— Choosing and validating measures —> time intensive

— Training and interpretation activities

— Managing many measures simultaneously
Lösung ausblenden
TESTE DEIN WISSEN
 Explain the Problem of over- and underinvestment with ROI and profit


Lösung anzeigen
TESTE DEIN WISSEN
-Managers of investment centers with high ROI’s may be unwilling to invest in assets that will decrease their current ROI
-This will lead to gnderinvestment
-Evaluation in terms of profit can lead to overinvestment


Lösung ausblenden
TESTE DEIN WISSEN

What is the difference between cost centers, profit centers and investment centers?

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TESTE DEIN WISSEN

Performance evaluation based on...


cost (Cost Center)


turnover - cost = profit (Profit center)


investment, turnover - cost (Investment center; Managers usually have great entrepreneurial responsibility while maximizing return on investment)



Lösung ausblenden
TESTE DEIN WISSEN

Explain ROI

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TESTE DEIN WISSEN

- primary, but outdated tool for evaluating performance


- ROI = Income / Invested capital


- Here: Income = EBIT - taxes (Net Operating Profit After Taxes NOPAT) 

Lösung ausblenden
TESTE DEIN WISSEN

What is value-based management?

Lösung anzeigen
TESTE DEIN WISSEN

- ROI and net profit can mislead


- Better: Assessment of the shareholder value creation (difference between the company value and market value of debt)


- State-of-the-art short-term evaluation system 



--> Economic value added (EVA) as successor of Residual Income (RI)


RI = NOPAT - Cost of Capital x Invested capital  


EVA = (NOPAT)adj - Cost of Capital x (invested capital)adj

Lösung ausblenden
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Beispielhafte Karteikarten für deinen MM2: Management Accounting Kurs an der Karlsruher Institut für Technologie - von Kommilitonen auf StudySmarter erstellt!

Q:
What are the three basic product strategies?
A:
Cost leadership (e.g. Ryanair)

Differentiation through features/brand (e.g. Apple)

Niche market (e.g. Fairphone)
Q:
Are bigger customers better customers?
A:
- Frequently untested and often wrong assumption

- Size of customer often leads to discount hurting revenue

-Often the most demanding of customers (e.g. high cost to serve)
Q:
Explain and outline the Transformation of the Management Accounting Profession
A:
-Self-Controlling: Democratizing of information, self service (mobil and realtime), Driver hierarchies with frontend
(SAP Digital Board Room)
-Data-Management: basis for analysis and simulation
-Analytics: Big data competence
-Agile monitoring: fast and lean, existing business modelss are threatened through digital alternatives
-Efficieny of management accounting: Automation, Self-controlling of standard analysis
-Business partnering: construktiv-critical accompanying of the digital transformation (Volatility of business models,
globalising the value chain), incentive between new and old models, change of culture (open exchange of
information and constructive critic)
Q:
What are the main Characteristics of MA?
A:
Improve products

Improve resource use (e.g. reducing overcapacity)

Improve services

Support decision making (e.g. investing & divesting)

Reduce costs —> Gain efficiency


Q:
Difference between out-of-pocket and accrual cost
A:
Out-of-pocket cost (cash accounting)
- incremental cost paid by cash
- records the cost when the payment is done

Accrual cost
- cost of resources during an extended time period
- Match expenses with related revenues
- records the cost when the deal is made
Mehr Karteikarten anzeigen
Q:
What’s the problem with ABC and how could that be solved?
A:
- ABC does not seem to succeed in practice nor creating performance benefits

- It lacks conceptual clarity

- Problem: Creating value out of data 

- Only meaningful in combination with World Class Manufacturing (Cost, Quality & Time improvements)

—> Time Driven ABC, which looks on the consumption of individual resource cost per capacity unit
Q:
Explain the Balance Scorecard
A:

- Idea: Align strategic company goals with specific measures incl. balanced KPIs (vision and strategy most important)


- Performance measurement system —> Incentives


- Analogy: A couple of balanced measures at the same time are used by pilots throughout the flight



Leading indicators: Measures that identify future outcomes (More Modern: Customer centricity)


Lagging indicators: Outcomes of earlier management plans (More Modern: Financial outcomes)



Q:

Benefits and disadvantages of a Balance Score Card?

A:
++ Encourages employees to consider the impacts of their decisions (measured to strategy)

++ Works in various types of organizations (from NGOs to Banks)


— Choosing and validating measures —> time intensive

— Training and interpretation activities

— Managing many measures simultaneously
Q:
 Explain the Problem of over- and underinvestment with ROI and profit


A:
-Managers of investment centers with high ROI’s may be unwilling to invest in assets that will decrease their current ROI
-This will lead to gnderinvestment
-Evaluation in terms of profit can lead to overinvestment


Q:

What is the difference between cost centers, profit centers and investment centers?

A:

Performance evaluation based on...


cost (Cost Center)


turnover - cost = profit (Profit center)


investment, turnover - cost (Investment center; Managers usually have great entrepreneurial responsibility while maximizing return on investment)



Q:

Explain ROI

A:

- primary, but outdated tool for evaluating performance


- ROI = Income / Invested capital


- Here: Income = EBIT - taxes (Net Operating Profit After Taxes NOPAT) 

Q:

What is value-based management?

A:

- ROI and net profit can mislead


- Better: Assessment of the shareholder value creation (difference between the company value and market value of debt)


- State-of-the-art short-term evaluation system 



--> Economic value added (EVA) as successor of Residual Income (RI)


RI = NOPAT - Cost of Capital x Invested capital  


EVA = (NOPAT)adj - Cost of Capital x (invested capital)adj

MM2: Management Accounting

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