Difference between revisions of "Decision accounting"
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(New page: == IGC-DEFINITION (abbreviated) == '''Decision accounting'''<br> Accounts that are prepared to help managers to take decisions are called decision accounts. It is of central importance for...) |
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== IGC-DEFINITION (abbreviated) == | == IGC-DEFINITION (abbreviated) == | ||
| − | '''Decision accounting'''<br> | + | '''Decision accounting / [[:de:Entscheidungsrechnung|Entscheidungsrechnung]]'''<br> |
| − | Accounts that are prepared to help managers to take decisions are called decision accounts. It is of central importance for the quality of such decision accounts, that only those costs, revenues and volumes should be included that can really and directly be changed by the decision to be taken. It is therefore worth discovering which additional costs are incurred by any given decision, as well as those costs that are saved. Also, it is crucial to know what additional revenue comes in or how much revenue is lost as a consequence of the same decision. So it is always the differences from the initial situation that are relevant to decisions, i.e. revenue and cost amounts, which are changed precisely by that decision. Through an increase in sales additional revenue is generated, but also additional revenue deductions are incurred such as discounts, bonuses and commissions. With changes in volume, on the one hand, costs either increase or decline, while on the other hand the costs change as the structure of the business undergoes adjustments. When production or sales volumes change, more (or fewer) proportional costs are incurred, while, where structures are readjusted, blocks of structure costs are built up or dismantled. From this basic insight into cost behaviour we can draw an important conclusion: structure costs allocated by a key are never relevant for decision-making. | + | Accounts that are prepared to help managers to take decisions are called decision accounts. It is of central importance for the quality of such decision accounts, that only those costs, revenues and volumes should be included that can really and directly be changed by the decision to be taken. It is therefore worth discovering which additional costs are incurred by any given decision, as well as those costs that are saved. Also, it is crucial to know what additional revenue comes in or how much revenue is lost as a consequence of the same decision. So it is always the differences from the initial situation that are relevant to decisions, i.e. revenue and cost amounts, which are changed precisely by that decision. Through an increase in sales additional revenue is generated, but also additional revenue deductions are incurred such as discounts, bonuses and commissions. With changes in volume, on the one hand, costs either increase or decline, while on the other hand the costs change as the structure of the business undergoes adjustments. When production or sales volumes change, more (or fewer) [[proportional costs]] are incurred, while, where structures are readjusted, blocks of structure costs are built up or dismantled. From this basic insight into cost behaviour we can draw an important conclusion: structure costs allocated by a key are never relevant for decision-making. |
from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)] | from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)] | ||
| − | |||
== Source == | == Source == | ||
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010] | [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010] | ||
| + | |||
| + | == Why You Should Always Trust Yourself == | ||
| + | |||
| + | Trust yourself. You know more than you think you do. Benjamin SpockAs time passes by and the more work you will do on discovering and improving yourself, the more you will realize that the ancient Latin quotation: Ne te quaesiveris extra - Do not look outside of yourself for the truth, is true. | ||
| + | |||
| + | [[http://goodvillenews.com/Why-You-Should-Always-Trust-Yourself-TR2gYW.html Why You Should Always Trust Yourself]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == The Radical Linguist Noam Chomsky == | ||
| + | |||
| + | For centuries experts held that every language is unique. Then one day in 1956, a young linguistics professor gave a legendary presentation at the Symposium on Information Theory at MIT. He argued that every intelligible sentence conforms not only to the rules of its particular language but to a universal grammar that encompasses all languages. | ||
| + | |||
| + | [[http://goodvillenews.com/The-Radical-Linguist-Noam-Chomsky-WKTWnp.html The Radical Linguist Noam Chomsky]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == Mr. Happy Man == | ||
| + | |||
| + | For six hours each day, Bermudas Johnny Barnes stands at a busy traffic intersection telling all who pass that he loves them. His delight and sincerity are infectious, and the people of the island love him back. His service is a simple reminder of the power of happiness and loving-kindness to change any day for the better | ||
| + | |||
| + | [[http://goodvillenews.com/Mr-Happy-Man-VDrbVr.html Mr. Happy Man]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == Champ Helps Injured Competitor Across Finish Line == | ||
| + | |||
| + | Sometimes, a simple gesture can take on a much greater meaning. During an Ohio track meet, Meghan Vogel sacrificed her own position to help Arden McMath, a fellow runner who fell down finish the race. | ||
| + | |||
| + | [[http://goodvillenews.com/Champ-Helps-Injured-Competitor-Across-Finish-Line-zzvVfj.html Champ Helps Injured Competitor Across Finish Line]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == Refugee Turned Entrepreneur Uplifts Women Abroad == | ||
| + | |||
| + | While some retailers have struggled in the recession, Amber Chand, an online retailer of items made by women living in war-torn countries, is experiencing success."As the economy was going into a downturn during the holiday season, which is my primary season, I noticed actually that my company was increasing in terms of sales and revenues, and we grew by 22 percent," says Chand. | ||
| + | |||
| + | [[http://goodvillenews.com/Refugee-Turned-Entrepreneur-Uplifts-Women-Abroad-w0ETyF.html Refugee Turned Entrepreneur Uplifts Women Abroad]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
Latest revision as of 10:31, 3 August 2012
Contents
IGC-DEFINITION (abbreviated)
Decision accounting / Entscheidungsrechnung
Accounts that are prepared to help managers to take decisions are called decision accounts. It is of central importance for the quality of such decision accounts, that only those costs, revenues and volumes should be included that can really and directly be changed by the decision to be taken. It is therefore worth discovering which additional costs are incurred by any given decision, as well as those costs that are saved. Also, it is crucial to know what additional revenue comes in or how much revenue is lost as a consequence of the same decision. So it is always the differences from the initial situation that are relevant to decisions, i.e. revenue and cost amounts, which are changed precisely by that decision. Through an increase in sales additional revenue is generated, but also additional revenue deductions are incurred such as discounts, bonuses and commissions. With changes in volume, on the one hand, costs either increase or decline, while on the other hand the costs change as the structure of the business undergoes adjustments. When production or sales volumes change, more (or fewer) proportional costs are incurred, while, where structures are readjusted, blocks of structure costs are built up or dismantled. From this basic insight into cost behaviour we can draw an important conclusion: structure costs allocated by a key are never relevant for decision-making.
from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)
Source
Why You Should Always Trust Yourself
Trust yourself. You know more than you think you do. Benjamin SpockAs time passes by and the more work you will do on discovering and improving yourself, the more you will realize that the ancient Latin quotation: Ne te quaesiveris extra - Do not look outside of yourself for the truth, is true.
[Why You Should Always Trust Yourself]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
The Radical Linguist Noam Chomsky
For centuries experts held that every language is unique. Then one day in 1956, a young linguistics professor gave a legendary presentation at the Symposium on Information Theory at MIT. He argued that every intelligible sentence conforms not only to the rules of its particular language but to a universal grammar that encompasses all languages.
[The Radical Linguist Noam Chomsky]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
Mr. Happy Man
For six hours each day, Bermudas Johnny Barnes stands at a busy traffic intersection telling all who pass that he loves them. His delight and sincerity are infectious, and the people of the island love him back. His service is a simple reminder of the power of happiness and loving-kindness to change any day for the better
[Mr. Happy Man]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
Champ Helps Injured Competitor Across Finish Line
Sometimes, a simple gesture can take on a much greater meaning. During an Ohio track meet, Meghan Vogel sacrificed her own position to help Arden McMath, a fellow runner who fell down finish the race.
[Champ Helps Injured Competitor Across Finish Line]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
Refugee Turned Entrepreneur Uplifts Women Abroad
While some retailers have struggled in the recession, Amber Chand, an online retailer of items made by women living in war-torn countries, is experiencing success."As the economy was going into a downturn during the holiday season, which is my primary season, I noticed actually that my company was increasing in terms of sales and revenues, and we grew by 22 percent," says Chand.
[Refugee Turned Entrepreneur Uplifts Women Abroad]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
