Implementation of a Controlling Model in Company xy

In the diploma thesis, the author highlighted the everyday challenges of cost management in the business environment of company xy. Through the stated hypotheses, I assume the necessity of complex business management of companies and timely detection of potential deviations. Through the practical part of the diploma thesis, it was possible to observe that certain indirect costs related to machinery and tools can also be treated as direct costs. Both of the above-mentioned hypotheses can be confirmed with the following explanation: The existence and growth of a company in the conditions of global business depend on many factors, among which correct and timely business decisions are of key importance.

Problem

In the diploma thesis, the author highlighted the everyday challenges of cost management in the business environment of company xy. Through the stated hypotheses, I assume the necessity of complex business management of companies and timely detection of potential deviations. I establish through the analysis of business operations on the concrete example of company xy that information on business performance must be: high-quality, timely and economically verified. Only such information provides an appropriate basis for correct business decision-making.

For the long-term existence and future growth of companies, both business performance and efficiency are very important. Due to the incredible rise in prices of certain raw materials in recent years, cost management of materials is an extremely important segment. Within the company itself, it is only possible to influence the quantity variance, as the value variance is usually dictated by the market.

Quantity variances are usually closely linked to quality variances, as additional consumption is usually caused by waste. Therefore, it is necessary to observe developments and strive to reduce overall negative variances.

Solution and Method

Through the practical part of the diploma thesis, it was possible to observe that certain indirect costs related to machinery and tools can also be treated as direct costs. In this context, we encounter the principle of flexible budgeting, as indirect costs are converted into direct costs based on the volume of planned activities. For the purpose of establishing controlling, it would be sensible in the company to formalise certain procedures, determine responsible decision-makers who would set action plans and responsible executors of these activities.

The most important tasks of the newly established controlling department will be: The company will have the following benefits due to the introduction of controlling: If I analyse individual hypotheses separately, I arrive at the following conclusion: Under points A and B, the following hypotheses were set in the introduction: A. The controller is a function that is absolutely necessary for the company, because the company needs a good supervisor of all calculations and monitoring of business processes. B.

With information at the right time, we can succeed, because controlling enables the direction and coordination of business operations through timely detection of potential deviations.

• monitor the flow of information within specific departments;
• monitor results as a consequence of planned and implemented activities and re-communicate this information to responsible persons and

Results

Both of the above-mentioned hypotheses can be confirmed with the following explanation: The existence and growth of a company in the conditions of global business depend on many factors, among which correct and timely business decisions are of key importance. Companies that feel competitive pressure and face the challenge of maintaining or increasing their competitive advantage need systems for managing data and information at different levels for effective decision-making. The fundamental problem here is managing large quantities of data, as it is necessary to extract the right data and systematically organise it.

C. Business and monitoring objectives must always be made concrete and determined in such a way that they are also achievable. The basis for business decision-making is information on business performance, which must be high-quality, timely, reliable and economically verified.

Even the most precise accounting data do not reveal everything necessary for long-term planning. The source of correct information is properly established and informationally supported controlling. Changes in the narrower and broader business environment are the only constant that forces the company as such to continuously adapt to newly arising circumstances.

Therefore, it is of extreme importance that business and monitoring objectives are precisely made concrete and determined in such a way that they can also be achieved. The last hypothesis would be partially refuted, namely: D. "A company that has controlling is always one step ahead of a company that does not have it (in the same industry)." I cannot fully agree with this statement, because: Based on all four stated hypotheses, it was possible to present the role of operational controlling in the manufacturing company xy.

This work is intended both for controlling practitioners who are already formed within the framework of the company's operations, namely as analysts who prepare information for decision-making, as well as for management and managers who are users of this information. The aim of this work is to demonstrate the role of controlling in the manufacturing company xy. Thus, we can recognise that we must proceed from the focus of operational controlling and the need for the inclusion of all processes in company xy, therefore the success of controlling is entirely dependent on the successful execution of the connecting role between individual task holders in the business process.

With this work, I wish to prove that the focus of controlling tasks is on the coordination of activities that take place in the company's processes, taking into account the strategic objectives of the company as a whole.

• every company already has internal cost monitoring controls set up for business purposes;
• through the thesis, I was able to observe different opinions of authors who believe that it is not mandatory for every company to have an organised controlling department, but rather it is sufficient to form it within the framework of other departments.