Management Input of Variables and its Impact on the Overall Development of Construction Company

3rd World Multidisciplinary Civil Engineering, Architecture, Urban Planning Symposium

土木建筑工程;文学

Kovarova, Hana^1 ; Vitkova, Eva^1

Brno University of Technology, Faculty of Civil Engineering, Veveí 331/95, Brno

602 00, Czech Republic^1

关键词: Business performance;    Cash flow return on investments;    Construction companies;    Economic value added;    Effective management;    Financial accounting;    Management accounting;    Micro-economic theory;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/471/10/102046/pdf
DOI  :  10.1088/1757-899X/471/10/102046

学科分类：土木及结构工程学

来源: IOP

【 摘 要 】

Common definition of management accounting can be described with its benefits for effective management and decision making. As this accounting is not regulated in law, its form may differ from company to company. Today's form of management accounting implies the integration of several areas. These areas include cost accounting, financial accounting, controlling, financial plans, financial analysis, price calculations, budgets, etc. Using financial analysis indicators, it is possible to compile the evaluation of the construction company from the perspective of financial stability and its performance. Approaches to measuring business performance have undergone some development. The indicators include a traditional group based on accounting data such as Return on Equity (ROE), Return on Assets (ROA), Return on Investment (ROI), and on indicators based on financial flows for example Cash Flow Return on Investment (CFROI) or Net Present Value (NPV). The last group consists of indicators that, according to the microeconomic theory, are based on economic profit. This group combines both accounting and market data. Indicators include Economic Value Added (EVA) and Market Value Added (MVA). This paper is aimed to evaluation of the construction company using the economic value added of economic index EVA. Due to its compilation this index became a variable evaluation tool in the companies. The EVA indicator, compared to other value indicators, appears to be a simpler benchmark of performance and its economic content is easily understood. The aim of the article is to compare the rating of selected construction companies based on the economic added value indicator. The impact of different inputs on the overall development of the construction company will be monitored. Variables will be controlled by sensitivity analysis. The results of this paper can be used in the future for management of companies through management accounting.