Class notes
Management accounting & control
- Course
- Institution
This is an overview of the lectures and papers.
[Show more]
Seller
Follow
noorvangriensven
Content preview
Lecture 1 (29/08): Introduction“A managerial reporting system (MRS) in a firm is as our brain in our body.”
Remembering/thinking → decision facilitating
Communicate instructing body parts → decision influencing (tracking + motivating)
Coordination → coordination facilitating (enables to coordinate)
Controllers (corporate finance):
Designing, maintaining and improving the MRS
, Accurate reasonable cost
Measure customer satisfaction
Real-time tracking of performance measures?
How to design forecasts so that it is still reasonably?
Advisory role for operational and strategic decisions
Strategic uncertainties
Which supplies
Bonuses?
Which control system?
The more you outsource, the less you see the insights → you lose control (+ more expenses)
Solution:
Controller as administrator: diagnostic use of MRS
Controller as business partner: Interactive use of MRS
, What is the problem?
Macro-level = internal and external risks
How to design your management control system (MCS) in order to avoid risks?
Micro-level = internal risks
Lack of effort
Lack of direction (what is expected)
Lack of ability
Analytical level = agency relationship
Agent executes an action (a) that has
private, convex costs (C(a)) for the agent
This generates benefits (Y) for the principal
Higher (a) leads probabilistically to higher values of (y), but (a) in itself is not
observable for the principal.
Principal observes a signal (x) carrying information about the level of (a)
The payment (w) can be determined by (x) → w = w(x)
Payouts:
Principal = y - w(x)
Agent = w(x) - C(a)
How do you measure x?
→ X is noisy an can be manipulated by the agent
What is KPI? How is it linked to performance?
Employee in economic real-life Employee in this course
Lazy Extrinsically but also intrinsically motivated
Selfish Selfish but we also have social preferences
Rational Our decisions are sometimes/often subject to behavioral biases
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller noorvangriensven. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.13. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now