1. Management Accounting Methods In Industrial Praxis Kelly Grunewald Ana Ely Helena Aschenbrennerova

2. Management Accounting Concerned with providing information to managers for use in planning and controlling operations and in decision making Emphasis on future decisions Relevance and flexibility of data (need not follow GAAP) Production schedules and pricing strategies Internal usage only

3. Chosen methods Balanced Scorecard Breakeven Analysis Financial Performance measures Non-financial performance measures Economic Value Added - EVA Non-financial performance measures Economic Value Added - EVA Total Quality Management, Indicator EFQM Total Quality Management, Indicator EFQM

4. Breakeven analysis Cost classification (Fixed vs. variable) Fixed costs/(Sales price – variable costs) After breakeven point, net income increases by unit contribution margin

5. Skoda Machine Tool

6. EVA Economic value added focuses on measuring the creation of value from operations as part of the periodic change in the value of operating invested assets in place. EVA = (rate of return - cost of capital) x economic capital

7. Non-financial performance measures Nonfinancial factors relate to the following functions (more commonly used in Europe) –manufacturing and production –sales and marketing –people –research and development

8. EFQM Very used and popular in Czech Republic Results Orientation Customer Focus Leadership & Constancy of Purpose Management by Processes & Facts People Development & Involvement Continuous Learning, Innovation & Improvement Partnership Development Corporate Social Responsibility

9. Financial Indicators EPS, Price-Earnings Ratio, Return on Assets Long-term indicators –Times interest earned, debt-to-equity Short-term indicators –Current ratio, quick ratio, A/R turnover, inventory turnover

10. Miller SABMillers Strategy Drive Volume and Productivity Optimize and expand existing positions Grow its brands in the international premium beer segment

11. Mainstream Malt Liquors Worthmore Economy

12. Balanced Scorecard

13. Four Performance Measures –Financial perspective (the companys bottom line), –Customer perspective (customer satisfaction, retention percentage, number of customer complaints) –Internal business process perspective (reduce delivery time to customers) –Learning and growth perspective (employee turnover rates and employee suggestions implemented) Must utilize overall company strategy

14. SABMiller EBITA –Volume, Pricing, Price Promotions –Brand, Package, and Geographic mix –Cost of sales –Fixed Marketing Expenses Marginal Contribution/barrel –Sales minus price promotions, excise taxes, cost of sales, and diversions

15. Skoda Machine Tool Ltd. ŠKODA concentrates its efforts on developing highly sophisticated machines with NC systems The conceptual solution of the ŠKODA machine tools makes it possible to design complete workstations for special technological purposes ŠKODA stresses permanent technical development.

16. Skoda Machine Tool Horizontal boring machines –IFVW 206 –UFK 1000 NC –IWD 700 A –IFVW 102 –IFVW 112 –IFVW 203 Lathers

17. Special Machine TOOLS –Clamping floor plates –Special machining centers –Rotary tables

18. Practical methods used by Skoda Breakeven analysis Financial indicators Non-financial indicators Marginal contribution

19. Management Accounting method SAB MILLER SKODA MACHINE TOOL, Ltd. Marginal Contribution xx EBITAx Break Even Analysis xx Financial Indicators xx Non – Financial Indicators x EVAx BSCx SAP (information system) xx