Management Accounting and Control
Hoorcollege 1 (26-8-2025)
EC1 Setting the Stage
Brain: a managerial reporting system in a firm is as our human brain in our body. A human cannot
function without the brain.
We have functions of our human brain.
- Remembering stuff
- Instructing body parts
- Coordinating between body parts
Moving consist of 2 parts: instructing and then coordinating body parts.
Function MRS (Management Reporting System):
MRS = ERP system, etc.
- Decision-facilitating function
o Because we collect information, we know which customer already paid, we know
what was the order of that customer and when do we need to send that order.
Based on these information, people can make decisions.
, o It helps us remember what had happened in the past. (Dus remembering stuff
van function of our human brain hoort bij decision-facilitating function)
- Decision-influencing
o We see this in every firm. Every firm exploit that function. For example: the firm is
growing and you want to hire someone. You get a bonus every year and it is based
on your performance. How can you measure it? They need to fill in some
questions how satisfied they are and you need to store that information. When
you have multiple responses, you have to combine it. If you get an 8 or more, the
employee will get the bonus. You use information of the reporting system, to
make sure he is doing a great job to align bonuses and to motivate people.
o Use data from the ERP system to motivate employees
o Dit hangt samen met instructing body parts (functions of our human brain).
- Coordination-facilitating function
o We use information from our reporting system, we store orders that have been
submitted into the system, zodat we weten wanneer een order uitgeleverd moet
worden.
o You use information from your MRS to coordinate between different departments
o Customer buys something, goes to the ERP system and production knows when
to deliver.
o It helps to coordinate between the different departments of your firm.
o Transfer pricing is an example of coordination-facilitating function.
o The better the information in your reporting system, the better decisions you can
take.
o The better the information in your reporting system, the better you can reward
your employees with bonuses etc.
o Dit hangt samen met coordinating between body parts (functions of our human
brain)
In this course: how can we optimize these 3 functions.
,Management Reporting Systems
= je ERP system (Exact, SAP, Salesforce, Excel, Odoo (Odoo is open source: you can use it for
free and you can program yourself into Odoo), Yuki (for small companies like bakeries))
Rechter screenshot is Odoo.
, Management Accounting Course (MAC): an informational perspective on strategy execution:
- Informational: we will focus on the reporting system, how can we improve the 3 different
functions.
- First step in improving is to make sure that the information in that system is correct and
accurate.
- Suppose that the information is not correct, dan kan het zijn dat iemand bijvoorbeeld
een bonus ontvangt die niet correct is.
We will study what controllers do:
- Motivating people
- Make sure the information is correct
Some cases:
GKN Aerospace: make components for airplanes.
- Their whole planning and control is customers
- They track everything to the customer in their booking system.
Hoorcollege 1 (26-8-2025)
EC1 Setting the Stage
Brain: a managerial reporting system in a firm is as our human brain in our body. A human cannot
function without the brain.
We have functions of our human brain.
- Remembering stuff
- Instructing body parts
- Coordinating between body parts
Moving consist of 2 parts: instructing and then coordinating body parts.
Function MRS (Management Reporting System):
MRS = ERP system, etc.
- Decision-facilitating function
o Because we collect information, we know which customer already paid, we know
what was the order of that customer and when do we need to send that order.
Based on these information, people can make decisions.
, o It helps us remember what had happened in the past. (Dus remembering stuff
van function of our human brain hoort bij decision-facilitating function)
- Decision-influencing
o We see this in every firm. Every firm exploit that function. For example: the firm is
growing and you want to hire someone. You get a bonus every year and it is based
on your performance. How can you measure it? They need to fill in some
questions how satisfied they are and you need to store that information. When
you have multiple responses, you have to combine it. If you get an 8 or more, the
employee will get the bonus. You use information of the reporting system, to
make sure he is doing a great job to align bonuses and to motivate people.
o Use data from the ERP system to motivate employees
o Dit hangt samen met instructing body parts (functions of our human brain).
- Coordination-facilitating function
o We use information from our reporting system, we store orders that have been
submitted into the system, zodat we weten wanneer een order uitgeleverd moet
worden.
o You use information from your MRS to coordinate between different departments
o Customer buys something, goes to the ERP system and production knows when
to deliver.
o It helps to coordinate between the different departments of your firm.
o Transfer pricing is an example of coordination-facilitating function.
o The better the information in your reporting system, the better decisions you can
take.
o The better the information in your reporting system, the better you can reward
your employees with bonuses etc.
o Dit hangt samen met coordinating between body parts (functions of our human
brain)
In this course: how can we optimize these 3 functions.
,Management Reporting Systems
= je ERP system (Exact, SAP, Salesforce, Excel, Odoo (Odoo is open source: you can use it for
free and you can program yourself into Odoo), Yuki (for small companies like bakeries))
Rechter screenshot is Odoo.
, Management Accounting Course (MAC): an informational perspective on strategy execution:
- Informational: we will focus on the reporting system, how can we improve the 3 different
functions.
- First step in improving is to make sure that the information in that system is correct and
accurate.
- Suppose that the information is not correct, dan kan het zijn dat iemand bijvoorbeeld
een bonus ontvangt die niet correct is.
We will study what controllers do:
- Motivating people
- Make sure the information is correct
Some cases:
GKN Aerospace: make components for airplanes.
- Their whole planning and control is customers
- They track everything to the customer in their booking system.
