|
Management Control is a fundamental activity in controlling the company, allowing you to evaluate the results in a predetermined period of time.
The system has the following objectives:
- compare actual data with budgeted data
- Budget: compare to maximum expected objectives
- Standard: measure the entity and nature of eventual gaps
- assign costs to the correct divisions or accounts (cost center, profit center, product, job order, etc.)
- analyze the main operating indexes (product gain, value-added margin, contribution margin, cost-volume-profit, etc.)
- make all necessary information available for analysis and decision support (break even, make or buy, etc.)
ESSEDI’s software has been created using a "mixed double" accounting method which is based upon a rigid separation of General Accounting and Industrial Accounting, and does not require duplication of data.
The collection of general accounting data is automatic and the balancing of accounts in industrial accounting with those of general accounting is assured through a series of separate accounts called connection or balancing accounts.
Advantages of Management Control:
- Better evaluation of product profitability and production workflow
- Flexibility in control procedures
- Greater convenience in the allocation of available resources (financial and physical)
- Improve the decision making process
- Management reporting system with detailed data by time period (monthly, trimester, annual)
- Spending by cost center in regards to company budget
|
