Faculty of Economics and Business University of Debrecen

Faculty of Economics and Business, University of Debrecen Controlling - Introduction Vilmos LAKATOS, Ph. D Associate Professor Department of Accounting and Finance Mail: lakatos. vilmos@econ. unideb. hu Room: MAG House 119/B

Name of Institute: Accounting and Finance Institute Program: Hours per week: Business and Administration (BA) 2+1 Credit numbers: 5 Prerequisite: International Financial Accounting II Goal of the course: The main goal of this subject is to allow students to gain knowledge, insights, and analytical skills in the field of controlling. The subject provides concepts, text, and cases in controlling and focuses on the building and running of integrated controlling systems, nevertheless it lays emphasis on the techniques of the management control process. Students will be able to understand how a firm’s managers go about planning, implementing, and using planning and management control systems to implement the strategies.

COURSE SCHEDULE Week 1. 2 3 4 5 Topics Comparison of financial and managerial accounting, relationship with controlling. LO: The student can see the place of managerial accounting in the company. Groups of Costs, flexible cost analysis LO: The student is able to distinguish and group costs The Role of Cost Calculation in Business Life LO: The student is able to use different costing methods The concept of controlling, the essence of controlling LO: The student is able to see the role and position of the controller in the management decision support A corporate controlling organization. Enterprise controlling system and operation. I. LO: The student is able to see the functioning of different controlling organizations 6 A corporate controlling organization. Enterprise controlling system and operation. II. LO: The student is able to see the functioning of different controlling organizations 7 Establishing enterprise controlling systems LO: The student can play a role in the development of the controlling organization 8 The controller and its task LO: The student can see the tasks of the controller Corporate design. Operational and strategic planning LO: The student is able to use operational and strategic planning methods Performance measurement. Enterprise Performance Measurement Systems I. LO: The student is able to use performance measurement systems Performance measurement. Enterprise Performance Measurement Systems II. LO: The student is able to use performance measurement systems IT support for controlling – Mini case study presentations LO: The student learns the IT support of controlling Functional Controlling Subsystems: Financial Controlling Additional Controlling Areas Mini case study presentations 9 10 11 12 13 14 LO: The student can interpret the different controlling subsystems Controlling in practice Mini case study presentations LO: The student is familiar with the controlling system of an enterprise

COURSE AND EXAM REQUIREMENTS During the lectures, students will learn about the features, tasks and methods of controlling. In practice, they perform calculations, case studies, and solutions that ensure that they acquire sufficient practice in the field of controlling, decision support, and causal relationships. Personal attendance is required on the lectures and seminars. The prerequisite for obtaining a semester's signature is that the students regularly visit the practice, the unjustified absence is allowed for up to three seminars, and the student have to do a mini case study presentation. All the students have to write and present a case study about the topic listed at the first seminar. The students will be informed about the conditions of the presentation at the first seminar too.

ASSESSMENT AND GRADING: The exam evaluated according to the following grading schedule: 0 - 59% – 1 fail 60% - 69% – 2 pass 70% - 79% – 3 satisfactory 80% - 89% – 4 good 90% - 100% – 5 excellent

READINGS COMPULSORY READINGS Study materials taken to Moodle and at the lectures was given https: //elearning. unideb. hu/course/view. php? id=5623 [1] R. , N. ANTHONY - V. GOVINDARAJAN: Management Control Systems, Mc. Graw-Hill/Irwin, 12 th Edition, 2007, New York, NY, chapters 1 -11. RECOMMENDED READINGS Flamholtz, E. G. : Effective Management Control, Kluwer Academic Publishers, 1996. Merchant, K. -Van der Stede, W. : Management Control Systems, Performance Measurement, Evaluation and Incentives, Prentice Hall, 2012.

Three areas for business information processing Financial Accounting Controlling Management Accounting

Importance of the management processes The money has a primary role, as the link and chain of production, sales, investment and financing activities to keep businesses running smoothly.

INTERPRETATION OF CONTROLLING DEFINITIONS a management subsystem that coordinates planning, control and information delivery; reviewing, evaluating, coordinating and integrating activities; a device of exercising the leadership function; linking the planning and accounting from a management point of view; cost and profit management (Performance and Expense Management)

Different control activities „production control” „quality control” „human control” „marketing control” „investment’s control”

The first topic: Nature of the MCS