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Financial results controls Formal management processes - Coggle Diagram
Financial results controls
Formal management processes
PLANNING
CYCLE
Programming/
capital busgeting
KA -> top down - botton up
operational
budgeting
short-planning financial planning
Budgets match the organization’s responsibility structure
Strategic
planning
thinking of the missions
goals and strategies
top-management process
charateristic
of a budget
management commitment
top manager approval
period of one year
periodically reviewed (in case of
different level of activity)
monetary terms
variances
MANAGEMENT
CONTROL
action control
: incluce actions that are good for the organization
personnel controls
: provide information for decision-making to the relevants managers
results controls
: target to evaluate performance
type of financial
performances
TARGETS
historical: mantein or increase
negotiated between managers of a given center and the higher level manager
model-based: relationship between input and output
internally: target costing
flexible: relative performance targets
externally derived: benchmarking
fixed: business condition are not considered
PRINCIPLES
planning
coordination
rewards
resources
goals
controls