9.1 - Perform planning and management accounting
PCF ID: 10728 | Elements: 27 | Metrics Available: Y | Benchmarkable: 5
Definition
Determining different stages of the planning process and accounting. Classify, determine, analyze, interpret, and communicate information to make up-to-date business decisions for better management and control functions.
Overview
This process group covers perform planning and management accounting within the broader context of Manage Financial Resources.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 9.1.1 | Perform planning/budgeting/forecasting | 10738 | 5 | Y |
| 9.1.2 | Perform cost accounting and control | 10739 | 6 | Y |
| 9.1.3 | Perform cost management | 10740 | 4 | Y |
| 9.1.4 | Evaluate and manage financial performance | 10741 | 7 | Y |
9.1.1 - Perform planning/budgeting/forecasting
PCF ID: 10738
Definition: Allocating funds to meet future and current financial goals. Led by the chief financial officer, have the finance function plan, budget, and forecast in order to determine and describe long and short-term financial goals.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.1.1.1 | Develop and maintain budget policies and procedures | 10771 | 0 | N |
| 9.1.1.2 | Prepare periodic budgets and plans | 10772 | 0 | N |
| 9.1.1.3 | Operationalize and implement plans to achieve budget | 20135 | 0 | N |
| 9.1.1.4 | Prepare periodic financial forecasts | 10773 | 0 | N |
| 9.1.1.5 | Perform variance analysis against forecasts and budgets | 20136 | 0 | N |
9.1.1.1 - Develop and maintain budget policies and procedures
Definition: Formulating financial budgetary guidelines and strategies. Develop a framework for rules and regulations regarding budgets. Create a step-by-step process to achieve financial goals.
9.1.1.2 - Prepare periodic budgets and plans
Definition: Creating reports on a quarterly or annual basis for fund allocation. Create a financial statement that estimates revenues and expenses over a specific period of time. (Leverage budget methods such as cost-based and zero-based budgeting techniques, in light of the periodic targets outlined during Develop and maintain budget policies and procedures [10771].)
9.1.1.3 - Operationalize and implement plans to achieve budget
Definition: Putting budgeting plans into practical use keeping within designated forecasting parameters.
9.1.1.4 - Prepare periodic financial forecasts
Definition: Creating estimates of the projected income and expenses required over a predetermined time frame. Develop the projections of profit and loss statements, balance sheets, and the cash flow forecast.
9.1.1.5 - Perform variance analysis against forecasts and budgets
Definition: Conducting a quantitative analysis between what was forecasted and budgeted and actual financial behavior.
9.1.2 - Perform cost accounting and control
PCF ID: 10739
Definition: Defining costs to be incurred and methods for optimum utilization. Determine the costs of products, processes, projects, etc. to compile in the financial statements, as well as to assist management in making decisions regarding planning and control. Control costs by managing and reducing business expenses.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.1.2.1 | Perform inventory accounting | 10774 | 0 | N |
| 9.1.2.2 | Perform profit center accounting | 14057 | 0 | N |
| 9.1.2.3 | Perform cost of sales analysis | 10775 | 0 | N |
| 9.1.2.4 | Perform product costing | 10776 | 0 | N |
| 9.1.2.5 | Perform variance analysis | 10777 | 0 | N |
| 9.1.2.6 | Report on profitability | 11175 | 0 | N |
9.1.2.1 - Perform inventory accounting
Definition: Conducting accounting for assets, and finding reasons for changes (depreciation, obsolescence, deterioration, change in customer taste, increased demand, decreased market supply, etc.).
9.1.2.2 - Perform profit center accounting
Definition: Determining the revenue, profits, and losses incurred by each unit within the organization that produces profit.
9.1.2.3 - Perform cost of sales analysis
Definition: Studying expenses directly associated with product. Analyze the cost of sales, which is the cost of manufacturing products.
9.1.2.4 - Perform product costing
Definition: Studying and finding out the relevant cost center for a product by studying every resource used in its making.
9.1.2.5 - Perform variance analysis
Definition: Discovering the changes between forecasted and actual costing. Analyze actual and planned behavior by reviewing the amount of a variance on a trend line in order to maintain control over a business.
9.1.2.6 - Report on profitability
Definition: Making a report about revenues generated by the organization or business unit concerned. This process requires the organization to create a report which shows how business is generating profits. Profits are the part which is left after paying all expenses directly related to the generation of the revenue, such as producing a product, and other expenses related to conducting business activities.
9.1.3 - Perform cost management
PCF ID: 10740
Definition: Deciding which expenses can be avoided to reduce some costs and increase revenues. Plan and control the organization's budget to forecast future expenditures.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.1.3.1 | Determine key cost drivers | 10778 | 0 | N |
| 9.1.3.2 | Measure cost drivers | 10779 | 0 | N |
| 9.1.3.3 | Determine critical activities | 10780 | 0 | N |
| 9.1.3.4 | Manage asset resource deployment and utilization | 10781 | 0 | N |
9.1.3.1 - Determine key cost drivers
Definition: Defining cost drivers for a particular activity.
9.1.3.2 - Measure cost drivers
Definition: Calculating cost drivers.
9.1.3.3 - Determine critical activities
Definition: Determine the activities that hinder the progress of finance activities. This requires the organization to determine those business activities carried out by the financial function of the organization and which are indispensable. This undertaking helps the organization triangulate those activities which are essential and where costs cannot be slashed.
9.1.3.4 - Manage asset resource deployment and utilization
Definition: Distributing or allocating asset resources in different processes for optimal utilization.
9.1.4 - Evaluate and manage financial performance
PCF ID: 10741
Definition: Checking and achieving predetermined financial targets and timelines. Assess and manage the profitability, feasibility, and consistency of a business or project. Study the revenues generated.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.1.4.1 | Assess customer and product profitability | 10782 | 0 | N |
| 9.1.4.2 | Evaluate new products | 10783 | 0 | N |
| 9.1.4.3 | Perform life cycle costing | 10784 | 0 | N |
| 9.1.4.4 | Optimize customer and product mix | 10785 | 0 | N |
| 9.1.4.5 | Track performance of new-customer and product strategies | 10786 | 0 | N |
| 9.1.4.6 | Prepare activity-based performance measures | 10787 | 0 | N |
| 9.1.4.7 | Manage continuous cost improvement | 10788 | 0 | N |
9.1.4.1 - Assess customer and product profitability
Definition: Studying product demand and targeted customer preferences. Study customers' demands or preferences after deducting the cost of delivering the final product.
9.1.4.2 - Evaluate new products
Definition: Checking demand about a specific product by a customer segment. Conduct a detailed study--or research a customer behavior or preference for a product--in order to determine its production and profitability in a specific market.
9.1.4.3 - Perform life cycle costing
Definition: Determining the cost of delivering an end product at different stages of production. Study the total life cycle of a product/process to determine how much revenue and production cost will be incurred at every stage in order to make strategic decisions.
9.1.4.4 - Optimize customer and product mix
Definition: Creating the best fit between a product and the end user. Maximize the customer base by providing different products in the market.
9.1.4.5 - Track performance of new-customer and product strategies
Definition: Observing the behavior of a new set of customers for different products. Prepare strategies to improve sales and profits.
9.1.4.6 - Prepare activity-based performance measures
Definition: Evaluating performance based on different sets of activities created by management to measure performance.
9.1.4.7 - Manage continuous cost improvement
Definition: Conducting activities to improve cost distribution regularly. Follow or adopt different ways of reducing costs.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 27 elements
| ID | Name | Definition |
|---|---|---|
| 9.1 | Perform planning and management accounting | Determining different stages of the planning process and accounting. Classify, determine, analyze, i... |
| 9.1.1 | Perform planning/budgeting/forecasting | Allocating funds to meet future and current financial goals. Led by the chief financial officer, hav... |
| 9.1.1.1 | Develop and maintain budget policies and... | Formulating financial budgetary guidelines and strategies. Develop a framework for rules and regulat... |
| 9.1.1.2 | Prepare periodic budgets and plans | Creating reports on a quarterly or annual basis for fund allocation. Create a financial statement th... |
| 9.1.1.3 | Operationalize and implement plans to ac... | Putting budgeting plans into practical use keeping within designated forecasting parameters. |
| 9.1.1.4 | Prepare periodic financial forecasts | Creating estimates of the projected income and expenses required over a predetermined time frame. De... |
| 9.1.1.5 | Perform variance analysis against foreca... | Conducting a quantitative analysis between what was forecasted and budgeted and actual financial beh... |
| 9.1.2 | Perform cost accounting and control | Defining costs to be incurred and methods for optimum utilization. Determine the costs of products, ... |
| 9.1.2.1 | Perform inventory accounting | Conducting accounting for assets, and finding reasons for changes (depreciation, obsolescence, deter... |
| 9.1.2.2 | Perform profit center accounting | Determining the revenue, profits, and losses incurred by each unit within the organization that prod... |
| 9.1.2.3 | Perform cost of sales analysis | Studying expenses directly associated with product. Analyze the cost of sales, which is the cost of ... |
| 9.1.2.4 | Perform product costing | Studying and finding out the relevant cost center for a product by studying every resource used in i... |
| 9.1.2.5 | Perform variance analysis | Discovering the changes between forecasted and actual costing. Analyze actual and planned behavior b... |
| 9.1.2.6 | Report on profitability | Making a report about revenues generated by the organization or business unit concerned. This proces... |
| 9.1.3 | Perform cost management | Deciding which expenses can be avoided to reduce some costs and increase revenues. Plan and control ... |
| 9.1.3.1 | Determine key cost drivers | Defining cost drivers for a particular activity. |
| 9.1.3.2 | Measure cost drivers | Calculating cost drivers. |
| 9.1.3.3 | Determine critical activities | Determine the activities that hinder the progress of finance activities. This requires the organizat... |
| 9.1.3.4 | Manage asset resource deployment and uti... | Distributing or allocating asset resources in different processes for optimal utilization. |
| 9.1.4 | Evaluate and manage financial performanc... | Checking and achieving predetermined financial targets and timelines. Assess and manage the profitab... |
| 9.1.4.1 | Assess customer and product profitabilit... | Studying product demand and targeted customer preferences. Study customers' demands or preferences a... |
| 9.1.4.2 | Evaluate new products | Checking demand about a specific product by a customer segment. Conduct a detailed study--or researc... |
| 9.1.4.3 | Perform life cycle costing | Determining the cost of delivering an end product at different stages of production. Study the total... |
| 9.1.4.4 | Optimize customer and product mix | Creating the best fit between a product and the end user. Maximize the customer base by providing di... |
| 9.1.4.5 | Track performance of new-customer and pr... | Observing the behavior of a new set of customers for different products. Prepare strategies to impro... |
| 9.1.4.6 | Prepare activity-based performance measu... | Evaluating performance based on different sets of activities created by management to measure perfor... |
| 9.1.4.7 | Manage continuous cost improvement | Conducting activities to improve cost distribution regularly. Follow or adopt different ways of redu... |
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