TAHAR Caroline

Associate Professor

Vidéos de cet auteur

02:49

Prepared at the end of the fiscal year for the following period, a budget is a forecasting and control tool used to organize an organization’s activities and measure their financial impact, typically over a maximum of one year. It represents the quantitative and financial expression of the short-term action plan of management. At the end of the period, budget reconciliation allows for updating forecasts based on the results of the past year and the objectives for the coming year. Some companies choose to prepare rolling budgets or rolling forecasts. Budgets are often subject to criticism, and in response, new approaches are emerging.

TAHAR Caroline - iaelyon School of Management |

Management Dictionary
Management Control

03:18

What are target costs?

How can costs be reduced without diminishing the product’s value for the customer? This question is at the origin of the target costing approach. It is not a cost calculation technique, but rather a cost management method. Its objective is to deliver a product whose perceived value meets customer expectations while not exceeding a maximum cost, the target cost, which ensures that shareholder margin requirements are met. This method is based on two principles: the additivity principle and the symmetry principle. The approach aims to control costs while preserving customer value. However, it can be very complex to implement.

TAHAR Caroline - iaelyon School of Management |

Management Dictionary
Management Control

02:42

What is variance analysis?

Variance analysis allows for the precise identification of the origins of differences between what was budgeted and what was actually achieved, and for the measurement of the financial impact of each cause. Thus, it is possible to calculate cost variances, revenue variances, and margin variances. For each element, sub-variances can also be calculated. Variance analysis helps to identify the main sources of profit decline, including cost overruns and revenue decreases, and to measure their financial consequences. This facilitates corrective actions by prioritizing the most significant factors. Moreover, this approach can be adapted to analyze the evolution of data between two periods.

TAHAR Caroline - iaelyon School of Management |

Management Dictionary
Management Control

02:41

What is dashboard?

A dashboard brings together indicators, numerical measures that assess the degree of achievement of objectives. Some indicators have strategic importance; these are known as Key Performance Indicators (KPIs). Dashboards are created and used either at the department level, as part of reporting, or at the company-wide level, as part of strategic management. In the latter case, they are referred to as strategic dashboards. They help to address two limitations of accounting: the lag between information and action and the narrow focus on financial data. Dashboards are very flexible because there is no legal obligation to implement them. However, this freedom can sometimes create challenges.

TAHAR Caroline - iaelyon School of Management |