The emergence of management accounting

CU stood out from accounting about 100 years ago, when the need for accounting information was created for the purposes of making managerial and production decisions.

The emergence of CU as an independent discipline is associated with the American Association of Accountants, who developed the CU degree program in 1972. This is the year of dividing BU into financial and managerial.

Common is the following:

1) CU is part of BU

2) includes the functions of planning, management and control

3) provides the management personnel of the organization with the necessary information for making operational management decisions and contributes to the achievement of the task

The essence of management accounting

CM is a subsystem of accounting, which within the framework of one organization provides its management apparatus with information used for planning, proper management, and control over the activities of the organization. This process includes the identification, measurement, collection, analysis, preparation, interpretation, transmission and reception of information necessary for the administrative apparatus to perform its functions.

There is no official definition of the CU in the legislative acts of the Russian Federation, since the organization of the CU is an internal affair of each enterprise, the state cannot oblige it to maintain the TC or prescribe uniform rules for its maintenance.

2 main features of UU:

Orientation of information to the user, i.e. a specific manager of the organization, while the needs of managers for information will depend, firstly, on the functional area in which they specialize, and secondly, on their position in the enterprise’s OSU, therefore, the MS system in a particular organizations m. b. built in various ways

Efficiency, i.e. information for the needs of the enterprise will be useful only if it is timely transmitted to the user

Characteristics of the information provided by management accounting. The conditions for its storage

The MS covers all types of accounting information for internal use by management at all levels of enterprise management:

Accounting and internal accounting data (accounting, statistics and financial statements of the enterprise)

Non-production and extra-accounting information (legislation, normative materials, materials of inspections of tax authorities, press materials, audits, competitor analysis, market position, etc.)

The following requirements are imposed on the information of the CU:

Targeting (information is provided to specific recipients in accordance with their level of preparedness and hierarchy)

Efficiency (information should be provided in a timely manner that makes it possible to make an effective decision in time)

Sufficiency (inf-tion should be provided in sufficient volume for decision-making, but should not be excessive)

Analytical (information should contain data from the current express analysis or suggest the possibility of conducting

the next analysis with the least amount of time)

Flexibility and initiative (inf-tion should be complete in any changing conditions and the centers of responsibility should be given the opportunity to formulate their proposals for the use of this inf-tion)

Usefulness (inf-tion should draw the attention of managers to areas of potential risk)

Sufficient economy (the cost of preparing information should not exceed the economic effect of its use)

Accounting inf-tion is 20-30% of the entire inf-tion of CU. Accordingly, 70-80% of inf-tion falls on economic analysis.

Management information is confidential and requires protection.

The purpose and objectives of management accounting

The main goal of the MS is to provide information to the managers of the organization for making management decisions.

The purpose of the CU is achieved by solving a number of tasks:

1) the formation of reliable and complete information about internal business processes and performance results and the provision of this information to the management of the enterprise by compiling internal management reporting

2) planning and monitoring the economic efficiency of the enterprise and its centers of responsibility

3) calculation of actual s / s of products (works, services) and determination of deviations from established norms, standards, estimates; analysis of deviations and identification of their causes

4) ensuring control over the availability and movement of property, material, monetary and labor resources

5) formation of an information base for decision-making

6) identification of reserves to improve the efficiency of the enterprise

7) identification of areas of greatest risk and bottlenecks in the enterprise

8) formation pricing policy at the enterprise, including the limits of discounts for various conditions sales and payment

9) the formation of an assortment policy and the identification of unprofitable types of products

10) evaluation of the effectiveness of additional costs and investments

Subject and objects of management accounting

Subject of TS - financial and economic activities of the enterprise as a whole and its individual structural divisions. Operations that are purely financial in nature are not included in the scope of TS.

The main objects of the CU:

Expenses and incomes of the enterprise and its separate structures of subdivisions (CO)

Results of economic activities as a comparison of income and expenses

DH and internal reporting system

Internal pricing, involving the use of transfer prices

Control system m. b. presented as a combination of the subject, the object of management and their relationship. The control subject generates a control action in the form of commands that are transmitted to the control object. The control object perceives the control action and acts in accordance with the control signal transmitted to it. The fact that the object has accepted the control action and responded to it, the control subject learns with the help of feedback.

The subject of management in the management system of the enterprise are managers, managers of all levels of management, endowed with certain powers to make decisions. Management objects - various resources of the company - employees, means and objects of labor, scientific - technical and information potential of the enterprise.

Management functions .

Planning is the process of describing options for action that may be taken in the future. It includes goal setting; task formulation; search for ways to solve problems to achieve the goal; choice of alternative actions.

Control and analysis - this is a check of the implemented plans as a whole and for individual units, a comparison of actual results with planned ones, revision of plans, identification and regulation of deviations.

In the process of analysis, it is determined whether the goal was achieved and the reasons for deviations are clarified: planning flaws, a non-optimal set of actions.

Organizational work is in building organizational structure an enterprise designed for the practical implementation of the goals set (departments, bureaus, groups, subdivisions, etc.); distribution of responsibilities between performers;

Stimulation- this is a means of motivating the participants in the production process, encouraging them to understand the goals and objectives of the enterprise and make decisions that correspond to these goals. In this capacity, estimates and executive reports on their implementation are used.

Internal information communication- this is the exchange of operational and reporting information, which allows coordinating the actions of various structural units to achieve the ultimate goal; specifying the tasks of each unit for the upcoming budget period; determining the conditions in which each head of the unit will operate, and the requirements (needs and restrictions) for him of related production units. Executive reports provide any manager with material for analyzing and evaluating their actions, developing measures to eliminate any actions that led to a decrease in management efficiency.

Management Accounting Principles

1) the continuity of the organization's activities (lack of intentions to liquidate and reduce the scale of activities)

2) the use of unified planning and accounting units of measurement in planning and accounting for production, which provides direct and feedback between them, the development of an accounting system based on a close relationship between the indicators of production control and cost accounting

3) evaluation of the performance of structural divisions (segments). Determination of the participation of each division in the formation of profit from the production and sale of products or services

4) continuity and multiple use of accounting and analytical information. Single fixation of data in primary documents and their repeated use for all types management activities, which allows you to create an economical system of accounting and reporting at the enterprise

systematic communication links within the organization. Manifested in the formation of internal reporting indicators at all levels of production

1) the structure on the rise and its use for management purposes

2) the principle of the budget method of management. Budgeting is used as a tool for planning, controlling and regulating the activities of an enterprise

3) the principle of completeness and analyticity of information. Indicators e. b. are presented in a form convenient for analysis and do not require additional analytical processing

4) the principle of the periodicity of receipt of analytical information. To present information, a schedule is developed, which is part of the workflow schedule at the enterprise

Differences between managerial and financial accounting

Accounting, the purpose of which is the formation of external reporting so that any user, even who has nothing to do with this organization, can create some impression of its financial condition at the reporting date - this is financial accounting.

If the accounting is kept in order to provide the managers of the organization with information for making management decisions for the future, this is accounting management accounting.

1. Management accounting is intended for users within the organization, financial - for external users.
2. Financial accounting must be kept in accordance with generally accepted rules, and the management accounting methodology is entirely within the competence of the chief accountant.
3. Financial accounting reflects only what was, and management calculates the expected, upcoming values ​​of the indicators taken into account.
4. Financial statements are prepared in strictly fixed terms, and in management accounting, reports are submitted as needed.
5. . Management accounting information is a list of the most detailed indicators, while financial accounting data is final.

In modern literature, the concepts of CU and production accounting are identified. This is not entirely true; historically, production accounting is the predecessor of CU. Production accounting is designed to determine the cost of production and revenue per unit of output, analyzing the causes of overspending compared to the previous period, as well as identifying possible reserves of the economy.

The main sections of modern production accounting are:

Cost accounting by types

Cost accounting by origin

Media Cost Accounting

Rice. one. The relationship of types of accounting

A - uu

B - Production accounting

D - Tax accounting

In addition to production accounting, management includes: budgeting, management analysis, management control over the activities of the organization and its segments, management decision-making, preparation of internal segment reporting.

To date, it is generally accepted to separate tax accounting into an independent direction, however, the information of FU and CU can be used in tax calculations.

U.U method:

The totality of various techniques and methods by which CU objects are reflected in the information system of an enterprise is called CU method .

Since the CU is part of the CU, therefore, elements of the CU methods are used in the CU:

Accounts and double entry

Inventory

Documentation

Balance generalization

Reporting

In addition to BU methods, CU uses a combination of methods of statistics, economic analysis, strategic and operational management and planning, economic and mathematical methods.

Key users of management accounting

Unlike the system for preparing information for accounting (financial) and tax reporting, focused on external users, the management accounting and analysis system is focused on internal users represented by the top management of the organization, as well as the heads and executives of its divisions.

In accordance with this, the formation of a management accounting system in an organization must meet the specific requirements of the management, which performs the functions of planning, monitoring and making strategic, tactical and operational decisions.

The users of information generated within the framework of the management accounting system in the organization are:

1) top management - forms the strategic goals of managing the organization. Receives integrated management reports on the achievement of goals, reflecting the actual results of the production, investment and financial activities of the organization as a whole and in the context of key structural units for the past period or at a specific point in time; analysis of external and internal factors that affect the results of fulfilling the long-term development goals of the organization, as well as planned and forecast performance indicators for the coming period;

2) management of structural units at all levels - forms an operational strategy for the implementation of long-term development goals of the organization, and in accordance with this receives management reports, including the values ​​of key performance indicators of units at a specific point in time, and the results of their analytical processing; information of a planned and forecast nature, as well as information on related divisions and counterparties;

3) specialists of structural divisions responsible for the formation and implementation of long-term goals of the company's development. Within their competence, they receive information about the activities of the company, its divisions, forecasts of internal and external factors that affect the performance of the organization.

In organizations that use certain components of the management accounting system in their activities, various functions of maintaining management accounting and providing management of relevant management reporting can be assigned to economists working in any of its structural units: analytical, planning and economic, financial, accounting, divisions strategic planning, functional structural divisions.

Responsibility Centers

In UU, DH is understood as a structural subdivision of an organization, headed by a manager who controls costs, income and funds invested in this business segment.

It is possible to form ACs with varying degrees of authority and responsibility of their leaders.

Cost center - the center of financial responsibility, the head of which is responsible for the performance of its functions within the established budget of expenses. As a rule, these are divisions that provide support and maintenance for the functioning of the company and do not directly generate profit. The leader has min managerial powers and min responsibility. More often production divisions, the purchasing department, the department of the administrative and managerial apparatus. The evaluation criterion is the efficiency of resource use.

Income Center - the center of financial responsibility, the head of which, within the allocated budget, is responsible for maximizing sales income, does not have the authority to vary prices and is limited in spending funds (within the budget). Sales department, marketing, commercial divisions responsible for the implementation. The main indicator is the volume of sales and sales proceeds.

profit center - the center of financial responsibility, the head of which is aimed at maximizing the rate of return and for this purpose can vary the selling prices and costs. As a rule, the profit center is the company as a whole.

Investment Center - the center of financial responsibility, the results of the activities of the head of which are evaluated on the basis of indicators of the efficiency of the use of assets.

Determination of costs.

Usually under costs understand the resources consumed or the money that must be paid for goods or services. Costs reflect how much and what resources are used, and These costs are always related to specific tasks, goals. Such tasks can be the production of a product, the functioning of a department, the provision of services, for which it is desirable to determine the amount of resources used in monetary terms. Without specifying the goal, the concept of costs becomes indefinite, meaningless. Simply put, costs are the cost of factors of production advanced and consumed in a given reporting period.

organization expenses a decrease in economic benefits is recognized as a result of the disposal of assets and the emergence of liabilities, leading to a decrease in the capital of the organization, with the exception of contributions by decision of the owners of the property. That is, expenses are cash payments for purchased goods and services, the cost of advanced factors of production, but not consumed.

The cost of the considered concepts is the most general indicator. Costs is a monetary measure of resources used for some purpose. Those. it means that expenses can be defined as costs incurred by the organization at the time of the acquisition of any material assets or services.

Grouping costs .

common goal cost classification consists in creating an ordered structure, without which it is impossible to effectively maintain accounts and link costs to an object. In addition, in order to manage costs and production, it is advisable to classify costs according to directions depending on what management problem needs to be solved. The main areas of cost accounting include:

1) to calculate the cost of production and determine the amount of profit received;

2) to make decisions;

3) for control and regulation.

To calculate the cost of manufactured products, estimate the value of inventories and profits

1.1. on economic elements. Cost elements include:

1) material costs;

2) labor costs;

3) deductions for social needs;

4) depreciation of fixed assets;

5) other expenses.

Grouping costs by economic elements allows you to define and analyze cost structure enterprises. To carry out this kind of analysis, it is necessary to calculate the specific gravity of an element in total amount costs. Depending on this ratio, the sectors of the economy can be divided, respectively, into material-intensive (the share of material costs in the cost is high), labor-intensive (the share of labor costs is high), capital-intensive (depreciation of fixed assets and other non-current assets prevails). This classification is used for industry comparative analysis. In the MS, the classification of costs by elements is not used due to its generalized nature.

The classification of costs according to economic elements is normatively defined. It is given in paragraph 8 of the Accounting Regulations 10/99 "Expenses of the organization", art. 253 Chapter 25 "Income Tax" of the Tax Code of the Russian Federation.

Much more information is carried by the classification of costs by costing items.

1.2. By articles. This is a list of cost items necessary for the production of a particular product or the implementation of a particular type of enterprise activity.

Cost item- a set of costs, reflecting their homogeneous intended use.

The list of cost items and their composition are determined by industry guidelines on planning, accounting and costing, taking into account the nature and structure of production, which were developed on the basis of standard recommendations in a planned economy and are advisory in nature. For some industries and activities, new guidelines, more consistent with the realities of a market economy, or updated the old ones. At the same time, enterprises can make changes to the standard nomenclature of costs in accordance with the characteristics of their activities. In some industries, for example, transport and procurement costs, depreciation deductions (due to the large specific weight), etc. are allocated. As an example, we can give a typical nomenclature of articles:

1. Raw materials and materials.

2. Returnable waste (deductible).

3. Purchased products, semi-finished products and services of an industrial nature of third parties.

4. Fuel and energy for technological purposes.

5. Wages of production workers.

6. Deductions for social needs.

7. Costs for the preparation and development of production.

8. Loss from marriage.

9. General production costs.

10. Other operating expenses.

11. General business expenses.

12. Selling expenses.

The first 11 articles form the so-called production cost. The sum of all 12 items is the total cost of production and sales (sales).

1.3. According to the method of attribution to cost distinguish between direct and indirect costs.

Direct - costs that can be directly and economically attributed to any product. The direct ones are:

Direct material costs;

Direct labor costs (direct labor costs) (debit account 20);

Other direct costs.

The greater the proportion of direct costs in the cost of a particular object of calculation, the more accurate the value of its cost.

Indirect : cannot be directly attributed to the product. They are pre-accumulated on the collection and distribution accounts and then included in the cost of the product by settlement. They are distributed among individual products according to the chosen method (in proportion to the basic wages of production workers, direct material costs, etc.). An example of such costs would be total accounting costs. These costs refer to all products produced during a period of time, and not just to one unit of costs. In addition, indirect costs include: the cost of auxiliary materials and components, the salary of auxiliary workers, the cost of maintaining production facilities, etc.

Indirect costs are divided into 2 groups:

a) general production (production) expenses(account 25): general shop expenses for the organization, maintenance and management of production;

b) general business (non-production) expenses(account 26) are carried out for the purpose of production management. They are not directly related to the production activities of the organization. Distinctive feature overhead costs is that within the scale base they remain unchanged. They can be changed by management decisions.

1.4. In relation to the technological process:

Main expenses directly related to the technological process of production and provision of services: include all types of resources (objects of labor in the form of raw materials, basic materials, purchased semi-finished products, depreciation of the OPF, wages of the main production workers). These are costs without which the technological process cannot be carried out.

Overhead : are called by management functions that are different in nature, purpose and role from production functions. Associated with the organization of the enterprise, its management, maintenance of production. In accordance with the method of attributing costs to the carrier, these are indirect costs.

1.5. According to the recognition as an expense method:

Product costs (grocery, production) : these are materialized costs that are embodied in stocks of materials, volumes of work in progress, balances of finished products, so they can be inventoried. They include: direct material costs, direct labor costs, general manufacturing costs. In management accounting, they are called inventory-intensive costs, because. they are distributed between stocks and current expenses involved in the formation of profits.

Period costs (periodic, non-manufacturing)

are not directly related to the production of products (performance of work, provision of services), cannot be inventoried. These are the costs of a certain period, because their size does not depend on the volume of production, but on the length of the period. These are non-inventory costs (accounts 26 and 44, i.e. administrative and commercial costs), because do not go through the inventory stage, but immediately affect the calculation of profits. This includes the costs associated with ensuring working conditions: the cost of selling products, departmental kindergartens, medical units, canteens, clubs - without which you can produce products. These costs are not included in the production cost. They are written off to reduce the profit from the sale of products (account 90 "Sales").

1.6. In composition:

single element : cannot be decomposed into components, consist of one element (wages, depreciation).

Complex : consist of several economic elements, for example, general production and general business expenses, which include salaries of the relevant personnel, depreciation of buildings and other single-element expenses.

1.7. In relation to the finished product:

Costs in work in progress (WIP), i.e. costs of production resources, which, due to technological features at a certain point, did not turn into finished products.

Finished product costs.

1.8. In terms of implementation efficiency:

Productive - the cost of manufacturing products with rational technology and organization of production.

Unproductive costs are the result of shortcomings in the technology and organization of production (losses from downtime, product defects, etc.)

For decision making and planning purposes

2.1. In relation to the level of business activity allocate variable, fixed, conditionally variable (mixed) costs.

Variables , depend on the business activity of the organization, i.e. increase or decrease in proportion to the volume of production. Variable nature can have both production and non-production costs. Production variable costs: direct labor costs, direct material costs, costs of auxiliary materials, purchased semi-finished products. Non-manufacturing variable costs include the cost of packaging finished products, transportation costs, commission for the sale of goods.

To characterize variable costs, the cost response coefficient is used:

where Y is the growth rate of costs, %;

X- business activity growth rate of the enterprise, %.

Varieties of variable costs:

a) proportional costs : Krz=1, they increase at the same rate as the business activity of the enterprise.

B) degressive costs : Krz<1, темпы роста дегрессивных затрат отстают от темпов роста деловой активности.

AT) progressive costs : K pz >1, costs are growing faster than the business activity of the enterprise.

Permanent , do not depend on the business activity of the organization, i.e. remained virtually unchanged during the reporting period. For fixed costs Krz = 0. These include: salaries of administrative staff, depreciation, rent payments. Of the calculation items, general business expenses are accepted as fixed costs.

In real life, it is rare to find costs that are inherently exclusively fixed or variable. In most cases, costs are conditionally variable (or conditionally fixed).

Conditionally variable costs (mixed, conditionally constant): their

Introduction

Management accounting entered the economic life of Russia along with the emergence and growth of market-oriented enterprises. The market economy is, first of all, competition, and competition is a constant struggle for the sales market, for the consumer, and, therefore, it is a struggle for quality and low cost. That's why modern enterprise must have the flexibility of production, that is, be able to quickly rebuild both its own organizational structure and the structure of products. All this requires the management of the enterprise to make quick and economical decisions, which is impossible without providing the subjects of management with relevant information.

Under the influence of various objective factors caused by new technologies, state regulation and the growth of enterprises, the business structure becomes more complicated, there is a need to split it into many legal entities, to simultaneously develop many areas of activity, to form a significant number of structural divisions (departments, services) as level of individual legal entities, and at the level of holdings. Under these conditions, the management of enterprises without prompt and reliable information is at risk of making erroneous management decisions. The task of presenting the necessary information is solved by management accounting.

The aim of the work is to consider management accounting as the basis for making management decisions. The tasks of the first chapter of the work include the definition of management accounting, consideration of the stages of its development, determination of the relationship and differences between financial and management accounting.

The tasks of the second chapter include consideration of the requirements for management accounting, as well as an example of the organization of management accounting in an enterprise.

The concept, goals and objectives of management accounting

Essence and tasks of management accounting

Management accounting is not only the collection and registration of information, but also its analysis and evaluation in order to obtain such data, on the basis of which it is possible to manage the organization, primarily operational. Primary accounting is one of the most important sources of information for management accounting, and the most reliable. At the same time, to meet the information needs of managers, data from additional sources, both internal and external, are needed.

Management accounting is not a new phenomenon for domestic practice. Normative accounting, accounting by cost centers and responsibility centers, division and analysis of costs by costing items and economic elements, etc. - all these tools were part of the Soviet production accounting. At the same time, the main information generated during that period concerned the calculation and control of costs. At the same time, this analytical information was formed in a single system of accounts, which still distinguishes Russian management accounting. At the same time, practically no attention was paid to the formation of information about the expected income, the profitability of a particular product, and pricing policy.

The management accounting system should provide planning and control not only of expenses, but also of income. Only such an approach will make it possible to obtain a real economic effect from internal accounting.

For the effective management of economic activity and the formation of the financial results of an enterprise, it is necessary to create a system of flexible, reliable and operational economic information. In these conditions, the role and importance of accounting is increasing.

Accounting as a source of information includes two major information systems: external - in the form of financial accounting and internal - in the form of management accounting. Financial accounting generates the information necessary for the preparation of financial statements: data on the income and expenses of the enterprise by element, on the amount of receivables and payables, the amount of financial investments, the state of funding sources, etc. Its maintenance is strictly regulated and obligatory for each enterprise carrying out economic activities, while the decision on the creation and functioning of a management accounting system depends on the administration of a particular enterprise. The rules of management accounting are established by the enterprise itself, taking into account the specifics of the activity, the features of solving certain managerial tasks. It combines into a single system planning, accounting and analysis of costs by types, places of formation and objects of calculation, regulatory accounting based on full and reduced costs, methods of its calculation, planning, accounting and analysis of investments. Each of constituent parts the system should provide a methodology for analytical evaluation of the information received from the point of view of the possibilities of using it for management purposes.

In a market economy, there is an integration of management methods into a single system of management accounting.

Management accounting in its content and purpose is future-oriented. At the same time, circumstances that may change during the planning period are taken into account. Management accounting data allows you to identify areas of greatest risk, bottlenecks in the activities of the enterprise, inefficient or unprofitable types of products and ways to implement them.

The introduction of management accounting into the practice of the enterprise is aimed primarily at providing managers of the enterprise with complete and reliable information necessary to control economic activities and make decisions based on the results of this activity. If external financial statements are compiled for the entire economic entity and reflect the facts of economic life that have already taken place, then management accounting also includes information about activities individual divisions enterprises, cost of sales various kinds and groups of goods, levels of direct and indirect costs, distribution costs by types, places of occurrence, as well as in terms of variable and fixed costs. At the same time, management accounting is an integral part of the enterprise management system in a market economy. In general, management accounting, unlike financial accounting, does not take into account the actual value of property, costs and income, the state of settlements and obligations, but takes into account factors, circumstances and conditions that affect the production, economic and financial activity enterprises. It is designed to provide information for decision-making on the management of the enterprise's economy and to check the effectiveness of the implementation of the decisions made.

The most important tasks of modern management practice are the development and implementation of decisions aimed at achieving financial and economic stability and efficiency of the organization.

The successful implementation of the tasks of managing an organization in the system of market relations requires from managers, managers and production organizers not only high competence and experience in specific areas of production activity, but also the ability to economically correctly, adequately assess and real mode time to respond both to dynamic external conditions of development economic processes, and to change the mode of functioning of the organization, associated with a change in the range and volume of production, structural adjustments, etc.

However, in many cases, when solving managerial problems, there is a lack of analytical and operational data characterizing real financial and production-economic processes at the time of decision-making at various levels of management.

In connection with this problem in management practice, a special role is assigned to management accounting. At the same time, much attention is paid to expanding and strengthening the functions of accounting, using its analytical potential as the main and reliable source of management information, methods of its analysis in order to form management decisions.

In the management system of Western firms, management accounting began to develop already in the 40s. XX century. This was due to an increase in the scale of production costs, increasing competition within the world economy, rising inflation, the emergence of new methods for planning and analyzing production activities based on the construction of economic and mathematical models.

The emergence of management accounting as an independent academic discipline is associated with the American Association of Accountants, which developed in 1972 a program for obtaining a diploma in management accounting with the qualification of accounting analysts for graduates.

This year marked the official division of accounting into financial and managerial. However, management accounting should not be considered something new for the domestic economy. In the 20s - early 30s. functions of accounting services were much broader than in last years Soviet power.

The accountant of that time was engaged in both accounting and planning and analytical work using various methods: calculation ( determination of costs in value (cash) form for the production of a unit or group of units of products, or for certain types of production. Calculation makes it possible to determine the planned or actual cost of an object or product and is the basis for their assessment.), factorial analysis, etc. However, only in the conditions of market relations is it possible to objectively integrate management methods into a single system of management accounting. Thus, in the conditions of developing market relations at Russian enterprises, there is a real need to create a management accounting system, which is considered one of the new and promising areas of accounting practice.

Management accounting provides information to internal users, i.e. individuals within the organization. This type of accounting has inherent features, methods, techniques, methods and principles of management and acts as a special area of ​​economic knowledge.

The main features of management accounting:

• 1. Management accounting is carried out when necessary, and information is prepared only when it is assumed that the benefits of using this information by management (administration) are greater than the costs of collecting it (legal requirements).
• 2. Management accounting is more approximate than financial, as management requires fast data submission, because decision making cannot be delayed until full information is received. Approximate information that can be processed quickly is usually sufficient to make a decision (degree of information accuracy).
• 3. The focus of management accounting are small areas or areas of activity of the organization, for example, certain types of products and indicators, departments and sales areas (scale of accounting).
• 4. The management of the organization may choose to use those accounting rules that it considers most useful for decision-making, without caring at all about whether they comply with generally accepted norms or legal requirements (accepted accounting principles).
• 5. The sphere of interest of management accounting includes information that is in the nature of a forecast, and information about what has already taken place. Decisions being made are forward-looking, and therefore management needs detailed information about expected costs and benefits (temporal relevance of information).
• 6. Management accounting information is requested by the administration as soon as it is needed. Therefore, reports containing management accounting data can be prepared daily, weekly or monthly (information frequency).

Management accounting uses production accounting data, within which accounting data on costs are obtained in order to determine the cost of products (works, services) and the expected profit from its implementation, but depending on the purpose of management, these data are grouped for different reasons, which makes them more broad semantic content. This is done in order to predict future costs and provide this information to managers at all levels of management of the organization to make the right decisions to ensure future results of its activities.

In modern conditions, management accounting is an objective necessity. Since each commercial organization independently chooses the direction of development, types of products, production volumes, marketing policy, social and investment policies, etc., then there is a need for all these parameters to accumulate information, to obtain the necessary credentials. Management accounting is one of the main conditions that allows the management of the organization to make the right management decisions. This is one of the important goals of management accounting. The purpose of management accounting is also the creation and support information system In the organisation. At the same time, this is the most important prerequisite for the functioning of management accounting. Another prerequisite is the development of the necessary system of indicators for management accounting and internal reporting forms.

The use of the management accounting system contributes to the improvement of the entire management process of the organization, creates real opportunities for its optimization. When implementing a management accounting system, it is necessary to solve the following tasks:

• - definition of the purposes which at the same time should be solved;
• - preparation and adoption of managerial decisions;
• - establishing the level of responsibility of individual employees;
• - current and subsequent control over the execution of decisions;
• - accounting of the received results;
• - trend analysis;
• - improvement of current and subsequent control.

The solution of all these problems provides the most optimal system for the adoption and implementation of appropriate management decisions.

Historically, at first some type of activity is singled out, and then in the process of its development, on the basis of the already established idea about it, this area of ​​knowledge receives its clear definition. That is why the definition of management accounting should be capacious, meaningful in terms of compliance with all the features, features, goals and objectives of this type of accounting. The following is proposed as such a definition.

Management Accounting - is an integrated collection system, processing and providing analytical information to internal users to optimize the activities of the enterprise and coordinate its future development.

Thus, the definition contains the fundamental features of management accounting (analyticity of information and the use of data by persons who are part of the organization), the main goal (optimization of the enterprise's activities) and the main task (providing the necessary information).

The uncertainty in the concept and definition of management accounting, despite the clarity of its goals and objectives, may be due to the fact that this is a relatively new phenomenon, the researchers of which have not yet come to a consensus on the place of management accounting in the general accounting system.

Management accounting is a system based on the collection, registration and systematization of information in an enterprise, which is further used by management in order to make decisions of a strategic and tactical nature.

The subject of management accounting is information - a system of information, data on how effectively the structural units of the enterprise function, what is customer satisfaction with the quality of goods and services produced.

Functions of management accounting

1. Planning is the most important function of management accounting. The function of operational control and long-term planning is closely related to it. It involves the formation of an information array and its transfer to each level in order to fulfill and control the achievement of all planned indicators.
2. Internal management. This function allows you to control the sequence of tasks, involves the adoption of organizational and operational measures.
3. Accounting function generates feedback, which means the possibility of supplementing the data obtained through internal control with external information. A variety of sources and methods of processing information are the advantage of management accounting.
4. Stimulating function is to define wages and bonuses in accordance with the success and contribution of each employee. Management has the opportunity to evaluate the work and set a fair remuneration.
5. coordinating function. Management accounting acts as a coordinating mechanism that provides all links with data and requires the management of different departments to coordinate their actions.

Objects of management accounting

The subject of management accounting is revealed through the objects on which its impact is directed.

The main objects of management accounting are:

1. Production resources necessary to ensure the functioning of the enterprise.
2. The set of business processes and their results, which is represented by:
3. supply activities;
4. production;
5. marketing;
6. organizational.

Purpose of management accounting

In theory and practice, a large number of goals and objectives of management accounting are considered.

The purpose of management accounting is providing management with planned, forecast and actual data regarding the enterprise as a whole and for individual structural units in order to make economically sound decisions that contribute to the achievement of effective functioning. Among the main tasks are:

• evaluation of the performance of a separate structural unit;
• control and cost accounting;
• accumulation of statistical data and identification of general trends relating to the income and expenditure side of the enterprise.

Components of management accounting

Management accounting consists of several interrelated parts, each of which generates information.

An integral part of management accounting is cost accounting for each area of ​​activity.

It is also worth highlighting a service whose main purpose is to regulate and prevent the occurrence of deviations and crisis situations.

Classification of management accounting systems

The most common division of management accounting systems into such types as:

1. Integrated type system, involving the transfer of information from the system of financial accounts to the system of operational accounts.
2. Closed system- the enterprise has an organization of financial and management accounting, but information from one account to another is not transferred.

On such a basis as the efficiency of cost accounting, management accounting systems are classified as follows:

1. A system that takes into account actual past costs;
2. A system based on normative accounting.

What is management accounting in accounting

For management accounting, it is permissible to use the data presented in the accounting (financial) statements. Management and accounting exist in the form of separate systems that can interact with each other or be independent of each other. The main difference is that management accounting is not mandatory for an enterprise, and accounting should be maintained by any enterprise, regardless of its form of ownership.

Thus, management accounting has advantages that allow the enterprise to achieve positive results of activities by making decisions based on reliable information.

Management accounting is a system:

• planning of expenditure and income indicators;
• attraction of financial resources;
• distribution of received funds in accordance with the plan;
• accounting for actually incurred expenses and their correlation with planned indicators;
• formation of internal and external reporting on funds received and spent;
• controls over all these processes.

Based on the above, the following definition can be derived:

Subject of management accounting

The subject of management accounting is management information. Traditionally, management accounting information was of a financial nature, that is, it was presented in dollars, rubles, yen or other monetary units. However, recently the field of management accounting has been significantly expanded by the addition of operational and physical (non-financial) information, such as product quality, process duration indicators, and subjective assessments, such as customer satisfaction, employee creativity and new product performance .

So, management accounting information can be:

• "quantitative" (that is, related to numbers, such as documentation on inventory, management reports, etc.);
• "qualitative" (that is, information of a non-financial nature that completes the picture by drawing management's attention to relevant non-monetary issues).

Quite often, qualitative factors are ignored by managers. This happens when data prepared as auxiliary material to make a decision, point directly to one decision. Such a practice is not effective, since the qualitative aspects of decisions are as important as the quantitative ones, and the most qualified decisions can only be made by taking into account all the information available.

In order for management information to be used effectively, it must meet certain specific criteria:

• Brevity - information should be clear, not contain anything superfluous;
• Accuracy - the user must be sure that the information does not contain errors or omissions. The information must be free from any manipulation;
• Efficiency - information should be ready by the time it is needed;
• Comparability – information should be comparable over time and across departments/divisions;
• Appropriateness - the information must be suitable for the purpose for which it is prepared;
• Cost-effectiveness - the preparation of information should not cost more than the benefits from its use;
• Non-biasedness - information should be prepared and presented in such a way that it is unbiased;
• Targeting - information should be brought to the responsible executor; while maintaining confidentiality.

Purpose of management accounting

The main goal of management accounting is to provide managers and managers with the necessary information for decision-making and effective management of the enterprise.

The main tasks of management accounting, solved within the framework of the goal:

• planning;
• costing and control;
• making decisions.

Planning- a process of certain actions that must be performed in the future. Planning is based on the analysis of past financial and non-financial information. Financial information is collected and processed in the accounting system. Planning within management accounting is called budget planning - the most detailed planning.

Determination of costs (cost accounting and costing of products) is a process that begins with the collection of all information related to the costs incurred in the purchase or production of finished goods, services by an enterprise. Of great importance for the proper organization of cost accounting is a scientifically based classification of costs.

Control system, as the establishment of feedback, should provide, on the one hand, cost planning, interconnected with actual activities, past and future events in the organization. On the other hand, the control system provides a clear tracking of the execution of plans, accounting for deviations of actual indicators from previously planned ones, as well as analysis of these deviations.

Making decisions is the final, final task of management accounting. Precisely to ensure the possibility of taking right decisions directed management accounting.

The main differences between financial (accounting) accounting and management accounting are as follows:

• Accounting purposes. Goals of management accounting: planning; costing and control; decision-making. Objectives of financial accounting: keeping records in accordance with clearly defined requirements and standards; reporting for external users; providing the data necessary for their own administration.
• information users. Users of financial statements can be either internal or external. Financial reports are open for publication and more focused on external users. Management reports are prepared primarily for use within the enterprise. They are inaccessible to external users and represent the trade secret of the company (cost and income estimates, product costing, capital investment plans, etc.).
• Ways to reflect accounting information. Financial statements are prepared in monetary terms (valuation), it includes the ending balances of all accounts. Business transactions are recorded using the double entry system. Any system that collects and analyzes information can be used to register management information.
• Freedom of choice. Financial accounting is based on clear standards and principles that determine the registration, evaluation and reflection of business transactions. The criterion of management accounting is usefulness for making informed management decisions.
• Units of measurement. For financial reports, information is measured in monetary units at the time of the transaction. To make managerial decisions, the predicted value of the monetary unit (“future dollar”) is often used, since it is necessary to estimate the value of future operations. Also used are such meters as man-hours, machine-hours, units of finished products and other natural indicators.
• The main objects of accounting. In financial accounting, data on the enterprise (economic unit) as a whole are summarized. Management accounting usually includes information about the activities of individual divisions of the enterprise, departments, workshops, jobs. The object of accounting can also be a separate management task.
• Reporting frequency. Financial reports are prepared regularly, the frequency of reporting is the main principle of financial accounting. In management accounting, reports can be prepared monthly, quarterly, etc., but there is no strict frequency.
• Degree of reliability. Financial information reflects transactions that have already been completed and is objective. Management accounting deals more with operations relating to the future, and therefore information is probabilistic, subjective.
• Mandatory record keeping. All enterprises are required to maintain financial accounting, regardless of the form of ownership and form of business organization. Management accounting is an internal affair of the enterprise itself.

These differences between financial (accounting) and management accounting do not mean that these subsystems exist independently of each other.

For management accounting, most companies use the data presented in the financial statements. But you should consider the pros and cons of this approach.

Production accounting and management accounting

You have to understand the difference between production accounting and management accounting . In the production accounting system, production costs are determined to estimate the cost of inventories, which meets the requirements of external reporting, while the task of management accounting is to prepare the relevant financial information for officials within the enterprise, which is necessary for making the right decisions. In fact, production accounting is part of financial accounting.

Classification of costs in management accounting

An important point in managerial activity is the decision-making process, during which the tactics and strategy for the development of the enterprise are determined. For these purposes, the costs of the enterprise, as divided into explicit and alternative, relevant and irrelevant, effective and inefficient.

For making managerial decisions, it is important to subdivide them into explicit and implicit (alternative) .

Explicit - These are the estimated costs that an enterprise must bear in carrying out production and commercial activities.

The cost of giving up one good in favor of another is called alternative (imputed) costs . They mean lost profits when the choice of one action excludes the occurrence of another action. Opportunity costs arise when resources are limited. If resources are not limited, are equal to zero. The opportunity cost is sometimes called incremental.

Depending on the specifics of the decisions made, the costs are divided into relevant and irrelevant . Relevant (i.e. significant, significant) costs can be considered only those costs that depend on the management decision under consideration. In particular, past costs cannot be relevant because they can no longer be influenced. At the same time, imputed costs (lost profits) are relevant for making managerial decisions.

The results of decisions made can be significantly influenced by the division of costs into effective and ineffective .

Effective - these are production costs, as a result of which they receive income from the sale of those types of products for the production of which these costs were incurred. Ineffective - these are non-productive costs, as a result of which no income will be received, since the product will not be produced. Inefficient costs are losses in production. These include losses from marriage, downtime, shortages and damage to inventory, etc. The obligatory allocation of inefficient costs is interpreted in order to prevent losses from penetrating into planning and rationing.

Any enterprise seeking to maximize its profits must organize its production in such a way that the cost per unit of output is minimal. This means that the decisions made should be guided by the task of minimizing costs. In fulfilling this task, great importance is attached to the forecasting process, during which the costs of the enterprise are considered in the short and long term.

AT short term individual factors of production do not change: they are called permanent(fixed) factors. These, as a rule, include such resources as industrial buildings, machines, equipment. However, it can also be land, the services of managers and qualified personnel. Economic resources that change during the production process are considered variables factors. AT medium term all input factors of production can change, but the basic ones remain unchanged. In the course of long term the underlying technologies may also change.

The management decisions made cannot be implemented if they are not directly related to the planning process, during which the estimated costs associated with the implementation of industrial and commercial activities are considered from the point of view of their coverage by the plan. For these purposes, planned and unplanned.

To planned include the production costs of the enterprise, due to its economic activities and provided for by the cost estimate for production. They are included in the planned cost of production in accordance with the norms, standards, limits and estimates.

Unplanned are non-productive expenses that are not inevitable and do not follow from normal conditions economic activity of the enterprise. These costs are considered direct losses and are therefore not included in the production cost estimate. They are reflected only in the actual cost of commercial products and in the relevant accounts in accounting. These include losses from marriage, downtime, etc. Their separate accounting contributes to the implementation of measures aimed at preventing them.

In management accounting, it is important to classify costs depending on their relationship to those operating in the enterprise. rules, regulations, limits and standards. On this basis, all costs included in the cost of production are grouped in the context established norms valid at the beginning of the current month, and on deviations from the current norms generated during the production process. Such a division of costs underlies regulatory accounting and is the most important means of current operational control over the level of production costs.

The process of enterprise management is impossible without its clear organizations. It forms the basis of day-to-day management activities, and neither plans nor programs usually work without it. In the process of organization, management structures, places and areas of cost occurrence, as well as persons responsible for their implementation and behavior are formed.

By places of origin costs are grouped and accounted for in the context of industries, workshops, sites, departments, teams and other structural divisions of the enterprise, i.e. by responsibility centers. This grouping of costs allows you to organize internal cost accounting and determine the production cost of products. Accounting for responsibility centers “ties” cost accounting to the organizational structure of the enterprise. This grouping of costs directly depends on the current organizational structure.

The above classification is closely related to the grouping of costs depending on the areas and functions of the enterprise supply and procurement , technological, commercial and marketing and organizational and managerial .

Such a grouping of costs allows you to organize functional accounting, in which costs are first collected in the context of the areas and functions of the enterprise, and only then - by calculation objects.

Functional cost accounting helps to strengthen intra-economic calculation and strengthen the relationship and interdependence between cost centers, provides more accurate information on the costs incurred. This helps managers to make joint informed decisions about the type, composition, price, ways of marketing products and helps to increase the efficiency of the production and commercial activities of the enterprise.

All measures taken aimed at the implementation of management activities can be nullified if the enterprise does not operate an effective accounting system. This direction bears the main responsibility for information support of the processes of adoption and implementation of the necessary management decisions. For the implementation of accounting procedures, the costs of the enterprise are grouped by composition, economic content, role in the technological process of manufacturing products, relation to the volume of production, method and time of inclusion in the cost of production, etc.

By composition costs are divided into single element and complex .

single element called costs, consisting of one element - materials, wages, depreciation, etc. These costs, regardless of their place of origin and purpose, are not divided into different components.

Comprehensive refers to costs that consist of several elements, for example, general production and general business expenses, which include the wages of the relevant personnel, depreciation of buildings and other single-element costs.

According to economic content costs are classified according to costing items and economic elements .

economic element It is customary to call the primary homogeneous type of costs for the production and sale of products, which at the enterprise level cannot be decomposed into its component parts.

The Regulation on the composition of costs included in the cost of production establishes a single list of economically homogeneous costs for all enterprises:

• labor costs;
• deductions for social needs;
• depreciation;
• other costs.

The elemental grouping of costs shows how many of these or those types of costs were incurred in the whole enterprise for a certain period of time, regardless of where they arose and for the production of which specific product they were used.

The grouping of costs by economic elements is an object of financial accounting and is used in the preparation of annual financial statements in the form of an appendix to the balance sheet (form No. 5). This grouping makes it possible to establish the need for basic and revolving funds, determining the wage fund, etc.

However, the classification of costs by economic elements does not allow to calculate the cost of individual types of products, to establish the amount of costs of specific structural divisions of the enterprise. For example, electricity at enterprises can be used both in the technological process of production, and for lighting the office of an enterprise, workshop premises, etc. In turn, in the technological process, electricity can be spent on the manufacture of various products in different quantities: more for one product, less for another. To solve these problems, the classification of costs according to costing items is used.

Calculation item It is customary to call a certain type of cost, which forms the cost of both individual types and all products as a whole.

Grouping costs by calculation items allows you to determine the purpose of costs and their role, organize control over costs, identify the qualitative indicators of economic activity of both the enterprise as a whole and its individual divisions, and establish in which areas it is necessary to search for ways to reduce production costs. On the basis of this grouping, an analytical accounting of production costs is built, and planned and actual costing of individual types of products is compiled.

The grouping of costs is important in choosing an accounting and costing system. in relation to the volume of production. On this basis, the costs are divided into permanent and variables .

variables are called costs, the value of which changes with the change in the volume of production. These include the consumption of raw materials and materials, fuel and energy for technological purposes, the wages of production workers, etc.

To permanent include costs, the value of which does not change or changes slightly with a change in the volume of production. Among them are others.

Some costs are called mixed , since they have both variable and constant components. They are sometimes called semi-variables and semi-permanent costs. All direct costs are variable costs, and in the composition of general production, general business and commercial expenses there are both variable and fixed components of costs. For example, a monthly telephone fee includes a fixed amount of the subscription fee and a variable part, which depends on the number and duration of long-distance and international telephone calls. Therefore, when accounting for costs, they must be clearly distinguished between fixed and variable costs.

The division of costs into fixed and variable has great importance for planning, accounting and analysis of production costs. Fixed costs, remaining relatively unchanged in absolute value, with the growth of production become an important factor in reducing the cost of production, since their value decreases per unit of output. Variable costs increase in direct proportion to the growth of production, but calculated per unit of output are a constant value. Savings on these costs can be achieved through the implementation of organizational and technical measures that ensure their reduction per unit of output. In addition, this grouping of costs can be used in the analysis and forecasting of the break-even production and, ultimately, in the choice of the economic policy of the enterprise.

By method of inclusion in the cost of production business costs are divided into straight and indirect .

Direct are the costs of producing a particular type of product. Therefore, they can be attributed to the objects of calculation at the time of their commission or accrual directly on the basis of the data of primary documents. These include: the cost of raw materials, materials, wages of production workers, etc.

Indirect expenses associated with the release of several types of products, for example, the cost of managing and servicing production (overhead).

Indirect costs are first collected in the relevant collection and distribution accounts, and then included in the cost of specific products using special allocation calculations. The choice of the distribution base is determined by the peculiarities of the organization and production technology and is established by industry instructions for planning, accounting and calculating the cost of production.

The division of costs into direct and indirect is conditional. So, in extractive industries, where, as a rule, one type of product is extracted, the costs are direct. In complex industries, in which several types of products are made from the same types of raw materials and materials, the main costs are indirect. The expansion of the share of direct costs contributes to more exact definition production cost.

By role in the technological process of manufacturing products and the intended purpose business costs are divided into basic and overhead .

Main are the costs directly related to the technological process of manufacturing products. These include costs that are part of the workshop production cost of products (the cost of raw materials, materials and semi-finished products that are materially included in the product; the cost of fuel and energy spent for technological purposes; labor costs for production workers and deductions for social needs; operating costs production machines and equipment, etc.).

Overhead expenses are formed in connection with the organization, maintenance of production, sales of products and management. They consist of complex general and commercial expenses. Their value depends on the organization of production and commercial activities, the business policy of the administration, the length of the reporting period and other factors.

The division of costs into fixed and overhead is based on the fact that only production costs should be included in the cost of production. They, as necessary, form the production cost of the product and are used to calculate the unit cost of production. Overhead costs are used to ensure the process of selling products and the functioning of the enterprise as an economic unit, and therefore should be written off as a decrease in profit from the sale of products.

In international practice, the main costs are in the form of production, and overhead - recurring costs. Such a grouping is still rare in the practice of domestic accounting. Meanwhile, it has long been widely used in countries with developed market economy using the Direct Cost accounting system. In this case, the resulting accounting information more adequately reflects the process of market pricing and allows you to comprehensively analyze and plan the ratio of production volumes, prices and production costs.

Important in management accounting is the grouping of costs depending on the time of their occurrence and attribution to the cost of production. On this basis, the costs are divided into current, future reporting period and upcoming. To current includes the costs of production and sale of products of this period. They have generated income in the present and have lost the ability to generate income in the future. Deferred expenses - these are costs incurred in the current reporting period, but subject to inclusion in the cost of products that will be produced in subsequent reporting periods (for example, the costs of mastering commissioned workshops, production facilities, the preparation and development of new types of products at existing enterprises). Such expenses should bring income in the future. To forthcoming include costs that have not yet been incurred in this reporting period, but in order to correctly reflect the actual cost, they are subject to inclusion in production costs for this reporting period in the planned amount (expenses for paying workers' vacations, paying a one-time remuneration for length of service and other costs of a periodic nature ).

Important in cost management is control system, which ensures the completeness and correctness of future actions aimed at reducing costs and increasing production efficiency. To provide a system for controlling costs, they are grouped into controlled and uncontrolled .

controlled - these are costs that can be controlled by the subjects of management. Uncontrolled the costs do not depend on the activities of the subjects of management. For example, the revaluation of fixed assets, which entailed an increase in the amount of depreciation charges, a change in prices for fuel and energy resources, etc.

When building a cost control system, it is necessary to determine:

• a system of controlled indicators, the composition and level of their detail;
• reporting deadlines;
• distribution of responsibility for the completeness, timeliness and reliability of the information contained in the cost reports, that is, “tie” the control system to the responsibility centers at the enterprise.

In order for the cost control system in an enterprise to be effective, it is first necessary to identify responsibility centers where costs are formed, classify costs, and then use the management cost accounting system. As a result, it will be able to timely identify “bottlenecks” in planning, costing and make appropriate management decisions.

The process of cost management in the enterprise includes the process regulation their level. For this purpose, costs are divided into adjustable and unregulated .

By degree adjustability costs are divided into fully, partially and poorly regulated.

Fully adjustable costs arise primarily in the areas of production and distribution. These are costs recorded by responsibility centers and their value depends on the degree of regulation by the manager. Partially adjustable costs occur mainly in R&D (research and development), marketing and customer service. Weak adjustable ( given ) costs arise in all functional areas.

The degree of controllability of costs depends on the specifics of a particular enterprise: the technology used; organizational structure; corporate culture and other factors. Therefore, there is no universal methodology for classifying costs according to the degree of controllability - it can only be developed in relation to a particular enterprise. The degree of cost controllability will vary depending on the following conditions:

• the duration of the period of time (with long period it becomes possible to influence those costs that are considered given in the short period);
• authority of the decision maker (costs that are set at the level of the foreman may be adjustable at the level of the director of the enterprise).

The division of costs into adjustable and unregulated must be provided in the reports on the execution of estimates by responsibility centers. This will highlight the area of ​​responsibility of each manager and evaluate his work in terms of controlling the costs of the enterprise unit.

A modern enterprise management system is not considered effective if it does not put the “human factor” in the first place. The success of any industrial and commercial activity primarily depends on the efforts labor collective, professionalism of management subjects, their interest in the results of their work. For this purpose, it is widely used in management incentive system. Based on this feature, the costs of the enterprise are divided into obligatory associated with the performance of basic job duties, and incentive aimed at achieving high quality indicators.

The process of making managerial decisions is impossible without effective economic analysis systems, allowing to evaluate the achieved results of the enterprise, to identify internal and external reserves for its further development. For this purpose, costs are grouped into actual, forecast, planned, estimated etc. In the course of the analysis, both the total amount of costs and the individual elements and articles that form it, i.e. structure.

The proposed classification of costs in the context of management functions will improve the efficiency of management accounting, enhance its analyticity and the ability to identify reserves to improve the performance of production and commercial activities.

The nature and purpose of cost accounting by responsibility center

The principles of cost accounting by distribution among products are not suitable for controlling and regulating them, since the production cycle of a product can consist of several different technological operations, each of which is the responsibility of an individual. Therefore, having information about the cost of production, it is impossible to determine exactly how the costs are distributed between individual production areas (responsibility centers). This problem is solved by establishing the relationship of costs and revenues with the actions of specific persons responsible for spending the corresponding funds. This approach to cost accounting is known as cost accounting by centers of financial responsibility for spending funds.

In a well-designed cost accounting system by responsibility center, there are two parameters:

• The first shows the contribution of specific products and services to the organization's profits.
• The second shows the contribution to the profit of individual segments of the organization.

One of the tasks of management accounting is to evaluate the activities of management in planning and controlling the actions of the organization in order to ensure effectiveness and efficiency. Responsibility center accounting is an important aspect of the management accounting function. Responsibility center accounting has its origins in management economics and behavioral science. A responsibility center can be defined as a division of a company in which the center manager is personally responsible for the performance of that division. There are four types of responsibility centers:

• cost or expense centers;
• centers of income (receipts);
• profit centers;
• investment centers.

Creation of responsibility centers is the most important salient feature management control systems. Therefore, it is important to clearly understand the differences between these types of responsibility centers.

cost centers or expenses - these are responsibility centers whose managers are generally responsible for the costs that are under their control. This type can be divided into two categories: normative cost centers and discretionary cost centers. Standard cost centers characterize that the result of their activity can be measured, and it is possible to determine the input resources required for the release of each unit of output. AT this case control is exercised by comparing standard costs (i.e., the cost of inputs that must be consumed when producing the planned volume of output) with the costs that the center actually incurred. The difference between actual and standard costs is called deviation.

Standard cost centers are best suited for those departments that stand out within manufacturing companies, but they can also be created in service industries, such as banks, where performance can be measured, for example, in the number of checks processed or loan applications. In addition, in this type of responsibility centers, there are clear dependencies between inputs and output. Although cost center managers are not responsible for product revenues, they can be affected if they do not maintain product quality standards or production is off schedule. Therefore, in addition to financial indicators it is required to monitor both indicators of quality and timeliness of work performance.

Discretionary Spending Centers - these are such centers of responsibility in which the result cannot be measured in financial terms and there is no clearly observed relationship between the initial resources (resources consumed) and the results obtained. Here management usually takes the form of ensuring that the actual costs for each category of costs correspond to the estimates and the tasks assigned to the center are successfully carried out. Examples of discretionary centers include advertising and public relations or research and development departments. It should be borne in mind that, in discretionary centres, spending less than estimated is not necessarily a positive development, as it may indicate a lower level of customer service than originally intended by management. For example, less spending on research and development may indicate that the amount of money spent on these activities will be insufficient. One of the major challenges that discretionary centers face is measuring how effectively they spend their allocated funds. Money. For example, the marketing assurance department may not exceed the funds allocated for advertising, but this does not mean that the advertising costs were well spent, as the advertising may have run at the wrong time, may have targeted the wrong audience, or conveyed the wrong target audience. Determining the efficiency and productivity of discretionary centers is one of the most difficult areas of managerial control.

A cost center is the location of a facility or service, function, activity, or facility for which costs can be determined. A cost center is a "part of an enterprise" for which costs can be identified and then assigned to cost units. Terminology in different organizations is not the same, but "part of the enterprise" can be either a department as a whole or its sub-department. In the center of costs (expenses), the manager's responsibility is limited to cost control. The activity report reflects the controllable costs associated with the work of the unit for a certain period of time. Costs for which the manager is directly responsible will appear in the activity report for that unit. The cost center manager is judged on his (her) ability to complete assigned tasks at an acceptable cost. To determine what amount of costs is considered acceptable, usually refer to the costs of the previous period. An acceptable cost level can be determined by estimating what the costs must be to complete the task. This approach is considered the most preferable.

For a paint manufacturing company, the cost center may be:

• Mixing department
• Packaging department
• Stock
• Administration
• Sales and marketing departments.

For an accounting firm, cost centers can be departments:

• audit,
• taxation,
• accounting,
• word processing,
• administration and canteen
• or a different geographic location, say, an office in Tashkent, an office in Samarkand.

Establishing costs for each center is important for:

• Definitions of cost-to-unit ratios
• Planning for future costs
• Cost control, i.e. comparison of actual costs with planned or actual costs with purchase costs.

Centers of income (receipt) - these are responsibility centers in which managers are responsible only for financial results obtained in the form of proceeds from the sale of products. Typical examples of such centers are regional distribution units, whose managers are responsible for ensuring the volume of sales in a certain area. In some organizations, revenue centers purchase finished products from production units and are responsible for distributing and distributing them. However, where managers are judged solely on the basis of sales revenue, there is a danger that they may try to maximize revenue at the expense of profitability. This may well happen when sales are not equally profitable, and managers may try to achieve higher revenues at the expense of low-margin products.

Receipt center managers may also be responsible for selling costs, such as salespeople's salaries, commission rates, and order processing costs. However, they are not responsible for the cost of the products they sell. Revenue centers should be distinguished from profit centers, since revenue centers are only responsible for most the total cost of production and sale of goods and services, namely selling expenses, while profit center managers are responsible for most of the costs, including production and sales.

profit centers

Managers of both cost centers and revenue centers have limited opportunities on the decisions made. Cost center managers are responsible for managing the inputs of their cost centers, but decisions relating to outputs are made by other parts of the organization. Revenue centers are responsible for the sale of goods and services, but they cannot control their production. When managers are given responsibility for both production and sales, there is a significant increase in the autonomy of their activities. In this case, managers, as a rule, can themselves set the price for the sale of products, choose the markets in which the products will be sold, determine the range of products and their volume, and also select suppliers. Those units of an organization whose managers are responsible for both revenues and costs are called profit centers.

In practice, many organizations refer to their structures as profit centers, although in fact they do not meet the requirements given above. As a rule, they are more limited in scope, and therefore they can be described as pseudo-profit centers. For example, distribution units may be called profit centers and charge the standard costs of goods or services sold, thereby making the center manager accountable for the gross contribution to profit. The creation of pseudo-profit centers from sales centers allows overcoming the main limitations of income centers, since in this case managers have a motivation to ensure not maximum income, but maximum profit.

Thus, a profit center is a cost center to which profit can be attributed. The control center in this case is shifted from a detailed analysis of income and expenses to an assessment of profit. The term "profit center" can be reduced to a unit of an organization that has four main characteristics:

The main goal is to make a profit.

Its management has the authority to make decisions that affect the most important factors that determine profits.

Model of the decision-making process

Since the information produced by accounting analysts must be considered in light of its ultimate impact on decision-making, understanding the decision-making process is a prerequisite for a correct understanding of management accounting. Consider the model of the decision-making process in fig. 1.1.

Rice. 1.1. Model of decision-making, planning and management processes

The first five steps are the process decision making or planning. Planning is essentially the choice of decision-making actions among alternatives. The last two steps reflect management process, consisting of the assessment and adjustment of actual indicators in order to implement the selected alternatives. Let's consider the decision-making process model in more detail.

Stage 1. Determination of goals

Before making the right decisions, it is necessary to determine the goal or main direction in order to evaluate the preference of one course of action over another. Hence, the first step in the decision-making process should be definition of the goals or objectives of the organization. What should be such goals and objectives is far from being a simple question, and there is an active controversy about it. Economic theory usually comes from the fact that companies seek to maximize profits for their owners or, more precisely, to increase the wealth of shareholders. In addition, profit maximization ultimately leads to the maximization of the overall economic welfare of the entire society. In other words, by improving your own situation, you are thereby working for the benefit of all other human members of the same society. At the same time, the interests of the company are the easier to implement, the higher its profits.

Stage 2. Search for alternative courses of action

The second step in the decision-making process is to look for a set of possible courses of action (or strategies) to achieve the goal. In particular, a company is encouraged to take one or more of the following options:

• development of new types of products for sale in existing markets;
• developing new products for new markets;
• creation (development) of new markets for the sale of manufactured products.

Stage 3. Collection of data related to alternative actions

Because decision problems often manifest themselves under conditions of uncertainty, there are a number of factors that cannot be controlled by decision makers, and these factors can influence each of the decision alternatives, to be considered.

These uncontrollable factors are called external conditions. Examples of such conditions: economic boom, high level inflation, decline in business activity, competitiveness, etc.

In the course of the implementation of the course of action chosen by the company, its resources will be involved for a long time, and the position of the company will largely depend on the general situation in which it will operate, i.e. on products, markets served and the ability to adequately respond to future changes. The choice of course determines both the long-term prospects of the company and, as a result, the type of decisions that it can make in the future. Such solutions commonly called long-term or strategic , they have a great influence on the future position of the company. Therefore, it is very important to obtain relevant data about the capabilities of the company and about environment in which it will operate. In addition to strategic or long-term decisions, managers also make decisions that do not require long-term involvement of the company's resources. Such solutions belong to the category short-term or operational , they are usually taken over by managers at lower levels of management. Such decisions are based on the current external situation, as well as existing this moment time at the disposal of the company physical, personnel and financial resources. Such decisions are largely determined by the quality of long-term solutions. Examples of short-term solutions are answers to the following questions:

• What selling prices should be set for the company's products?
• How many products different kind(in units) need to be produced?
• What media should be used to advertise the company's products?
• What level of service will be offered to consumers, for example, in terms of the number of days to deliver an order? How will the after-sales service be arranged?

To make short-term decisions, it is also necessary to collect relevant data, for example, on the selling prices of competitors' products, the expected demand for goods at alternative selling prices, and the forecasted costs at various options production. This information is required for pricing and decision-making on the volume of production. After necessary information collected, managers must decide which course of action to take.

Stage 4. Choice the best option actions from alternative possible

In practice, decision making involves comparing competing alternative courses of action and selecting the one that best suits the organization's needs. Assuming that the goal is to maximize net cash flows in the future, then the choice of option should be based on a comparison of differences between cash flows. Therefore, an incremental analysis of net cash receipts must be applied to each alternative. After that, all alternative options are ranked according to the size of these net incomes and those with the highest these indicators are selected, of course, taking into account additional qualitative factors.

Stage 5 Implementation of the adopted decisions

Once alternative courses of action have been selected, they must be implemented as part of the budgeting process. Estimate (budget) - is a financial plan for the implementation various solutions, accepted by managers. The estimates take into account cash receipts and payments from the organization, as well as receipts from the sale of products and costs. All estimates are summarized in a single document, which summarizes the intentions of the organization and the expected results of activities. Such a document is called generalized financial estimate (master budget) and consists of an estimated profit and loss account, a cash flow calculation and a balance sheet. Budgeting is designed to ensure that everyone in the organization is aware of the role they must play in implementing the decisions made by top management.

Stage 6 Comparison of actual and planned results

The last stages of the decision process model shown in fig. 1.1, comparisons of actual and planned results, as well as measures to eliminate deviations from the plan, if any, are related to the implementation process control in company. The managerial function of the control and regulation process includes measuring performance, providing information about them and developing corrective measures aimed at ensuring that goals are achieved and plans are implemented. In other words, the task of the control and regulation process is to ensure that the original plans are carried out.

To monitor performance, the accountant prepares budget execution reports and provides them to the relevant managers responsible for the implementation of certain decisions. These reports, containing data on the comparison of actual (actual costs and receipts) and planned results (estimated costs and receipts), should be prepared systematically. The data of these reports, by comparing the planned and actual results, provide the necessary feedback. In such reports Special attention those activities that deviate from the plan should be addressed so that managers can give due attention and time to these deviations. In this case, the method deviation control . Effective control requires corrective actions to be taken so that actual results reach the planned level. In turn, if the results of the comparison show that the adopted plans cannot be achieved, the plans can also be refined.

Stage 7. Taking action on elimination of deviations from the plan

Corrective actions to bring actual results in line with planned ones, or adjusting plans if the data obtained as a result of the comparison indicate the need for intervention, are shown in Fig. 1.1 arrow lines connecting steps 7 and 5 and 7 and 2. These lines are contours of the reverse connections. They show that decision making is a dynamic process and emphasize the interdependence between its various steps. The feedback between steps 7 and 2 indicates that the progress of the plan must be constantly reviewed and, if it turns out that the adopted plan can no longer be implemented, it is necessary to consider alternative courses of action that will ensure the organization achieves its goal. The second feedback loop shows the corrective action taken to bring the actual results in line with the planned ones.