Professional Documents
Culture Documents
Controlling: Business Organization and Management
Controlling: Business Organization and Management
Established Performance
objectives and standards
Measure actual
performance
Actual performance
match the Do Nothing
standards
Take corrective
action
STEPS IN THE CONTROL PROCESS
1. Establishing Performance Objectives and Standards
- Sales targets expressed in quantity or monetary terms
- Production targets expressed in quantity and quality
- Worker attendance expressed in terms of rate in absences
- Supplies Used expressed in quantity or monetary terms of
given period
2. Measuring Actual Performance
3. Comparing Actual Performance to Objectives and Standards
4. Taking Necessary Action
TYPES OF CONTROL
PRE-
OPERATIONS Feed forward
PHASE Control
ACTUAL
OPERATIONS Concurrent
PHASE Control
POST
OPERATIONS Feedback
PHASE Control
TYPES OF CONTROL
Financial Analysis
- the success of most organizations depend on
heavily on its financial performance. (IS, BS)
Financial Ratio Analysis
a. Liquidity ratio used to assess the ability of the company to
meet its current obligation.
- Current Ratio (current assets / current liabilities)
- Acid Test ratio (current assets-inventories / current liabilities)