Goals, functions and objectives of management accounting.

Management accounting is a system for collecting and providing important information for making decisions on the activities of an organization. Management accounting gives an answer to the question of the state of the enterprise, how it is necessary to distribute the available resources in order to increase the efficiency of activities.

Management accounting principles:

• periodicity, reflecting the production cycles of the enterprise;
• continuity and multiple use of primary and intermediate information for management purposes;
• formation of reporting indicators for communication links between management levels;
• application of the budget method of activity management;
• evaluation of the performance of structural units;
• completeness and analyticity of information;
• use of common units of measurement.

Figure 1. Analysis of operational activities on the example of the software product "WA: Financier".

Purpose of management accounting

The main purpose of management accounting is to provide leaders and managers necessary information for decision-making and effective enterprise management.

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

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

Figure 2. DDS planning on the example of the software product "WA: Financier".

The management accounting system ensures the implementation of the organization management function in relation to:

• production processes;
• structural divisions;
• resources used in business activities;
• performance indicators.

The choice of a system of management accounting methods was determined by the specifics of the company's activities, the composition of business operations, as well as the need to present financial statements prepared according to certain standards to external users.

For management purposes, both managerial and financial accounting can be used. Comparison of financial and management accounting can be done using different criteria, but functionally they are determined by the interests of users of accounting information:

• the main users of information in financial accounting are creditors, investors and managers of the enterprise, and in management accounting only managers.
• Users have different purposes for using information. For financial accounting, creditors and investors need a long-term assessment of the effectiveness of the activities carried out (including financial stability, liquidity, creditworthiness). For management accounting, managers in their current work need information to make informed and effective management decisions in operational activities;
• information requirements are determined by the goals of users. In financial accounting, this is less operational, but well-verified information, complete, reliable and understandable to a wide range of users. In management accounting, operational information is important for specific specialists, but sufficient, objective, with economically feasible costs for verification;
• the accounting information methodology is set by the information requirements. In financial accounting, the generally accepted rules for completeness, reliability and understandability to a wide range of users are formulated in general (international) standards. In management accounting, a flexible balance between efficiency and completeness/reliability of information is fixed by local acts.

Setting up management accounting at an enterprise begins with an audit of management accounting and the existing accounting system.

The basis for setting up a management accounting system is the production business process of an enterprise. The peculiarities of management accounting are that the accounting system, which is not based on the physical business process of the enterprise, functions incorrectly and cannot serve as a basis for making management decisions. This is due to the fact that a large number of employees are involved in ensuring the functioning of business processes, each of which focuses on its own area of ​​work.

The document management system is inextricably linked with the physical business process of the company.

The introduction of management accounting at the enterprise is the final stage of accounting.

Last update date: 08/19/2016 12:51 PM

See the following sections for details.

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" (i.e. related to numbers, such as inventory records, 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 decision support material points 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 system accounting. 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. Management accounting is aimed at ensuring the ability to make the right decisions.

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 are 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 physical 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

Classification features taking into account management functions	Cost types
Management Decision Making Process	Explicit and alternative; relevant and irrelevant; efficient and inefficient
Forecasting process	Short term and long term
The planning process	Planned and unplanned
Rationing process	Standards, norms and regulations and deviation from them
Organization process	By places and spheres of origin; activity functions and responsibility centers
Accounting process	Single element and complex; according to costing items and economic elements; constants and variables; basic and overhead; direct and indirect; current and one-time
Control process	Controlled and uncontrolled
Regulatory process	Regulated and non-regulated
Incentive process	Mandatory and incentive
Analysis Process	actual; predictive, planned; estimated; standard; general and structural; full and partial

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.

V 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. V 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- these are unproductive expenses that are not inevitable and do not follow from the normal conditions of the enterprise's economic activity. These costs are considered direct losses and are therefore not included in the production cost estimates. They are reflected only in the actual cost of commercial products and in the corresponding 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 are called costs, consisting of one element - materials, wage, depreciation, etc. These costs, regardless of their place of origin and intended purpose, are not divided into various 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 particular 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 general production, general and commercial expenses include both variable and fixed cost components. 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 is of great importance for planning, accounting and analysis of production costs. fixed costs, remaining relatively unchanged in absolute value, with an increase in production, they 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 a more accurate determination of the cost of production.

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 been widely used for a long time in countries with developed market economies that use 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 production and commercial activity primarily depends on the efforts of the labor collective, the professionalism of the 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, which allows to evaluate the achieved results of the enterprise, to identify internal and external reserves 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 feature of managerial 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. In this case, control is carried out by comparing the standard costs (ie, the cost of inputs that must be consumed in the release of 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 in the 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 also necessary to monitor indicators of the quality and timeliness of work.

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. 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 varies from organization to organization, but a "part of an enterprise" can be either a department as a whole or a 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
• Warehouse
• 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 responsible for only a small part of the total costs of producing and selling goods and services, namely selling expenses, while profit center managers are responsible for most of the costs, including production costs. and implementation.

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.

Such uncontrollable factors are called external conditions. Examples of such conditions: economic boom, high inflation, business decline, 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 the 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, human 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 of different types (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 for various production options. This information is required for pricing and decision-making on the volume of production. Once the necessary information has been collected, managers must decide which course of action to take.

Stage 4. Choosing the best course of action from alternatives

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) - it is a financial plan drawn up for the implementation of various decisions made 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 have to 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.

Answers to the test by discipline

"Management Accounting and Personnel Accounting"

What is management accounting?

Management Accounting- an ordered system for identifying, measuring, collecting, registering, interpreting, summarizing, preparing and providing information and indicators important for making decisions on the activities of the organization for the management level of the organization (internal users - managers). The main task of management accounting is to answer the question of the state of the organization, how it is necessary to distribute the available resources in order to increase the efficiency of activities.

What is the essence of management accounting?

The construction of a management accounting system in an organization consists in the formation of a set of formalized procedures that provide managers of all levels with information obtained from both internal and external sources in order to make timely and effective solutions within the scope of their competence.

Management accounting covers the management system of the organization as a whole, including strategic management, assessment of the activities of the organization, its divisions and functional blocks, control and planning of economic activities and ensuring optimal use material, financial and human resources. (cost accounting and management; development of performance indicators; strategic and operational planning activities.) the main result is an increase in the quality of organization management.

What is the purpose of management accounting?

The main purpose of management accounting is to provide the management of the organization with a full range of information on the actual, planned and forecast indicators of the functioning of the enterprise as an economic and production unit (including the presentation of data on the enterprise as a whole, as well as in the context of structural and production divisions, responsibility centers), as well as the necessary information about the external environment in order to provide an opportunity to make economically sound management decisions.

Who are the key users of management accounting?

1) top management - forms the strategic goals of managing the organization. Receives integrated management reports on the achievement of goals, analysis of external and internal factors affecting the results of fulfilling the long-term goals of the organization's development, as well as planned and forecast performance indicators for the coming period; and in accordance with this receives management reports. 3) specialists of structural divisions Within their competence receive information about the activities of the company, its divisions, forecasts of internal and external factors that affect the performance of the organization.

5. What is included in the concepts of the task of management accounting?

1. Accounting for organization resources

ensuring prompt, complete and reliable accounting of the organization's resources, including material, financial and human resources, in order to control and improve the efficiency of their use. 2. Control and analysis of financial and economic activities.3. Planning is the process of setting goals, formulating, evaluating and selecting policies, strategies, tactics and specific actions to achieve them, as well as quantifying the impact that planned operations and other future economic events have on the enterprise. 4. Forecasting and Forecast Estimates. refers to providing an opinion on the impact of expected future events based on an analysis of past events and quantifying them for planning purposes.

6. What are the main components of the management accounting system in the organization?

1. The cost accounting and management system gives management about: 1) information about where, when and how much resources are spent o; 2) a forecast of changes in resource spending 3) the ability, based on the information received, to ensure the highest possible level of return on the use of limited resources .2. System of performance indicators Performance indicators are the basis for planning the work of departments and delegating responsibility in the enterprise. For the implementation of the relevant managerial functions by managers of all levels, the rules for delegation of authority, rules for the distribution of responsibility in the management structure of organizations are necessary3. The system of long-term and current budgets evaluates planned income and expenses and compares them with actual income and expenses.4. The management reporting system reflects the accepted management practices of the organization. Top-level management is encouraged to provide the least detailed reports. As you move down the management structure, it is proposed to make reports more detailed.

7. What are the main processes that ensure the formation and functioning of the management accounting system?

1. Identification, measurement and accumulation of data1) consists in the definition, classification and evaluation of business transactions 2) provides for the presentation of data on business transactions3) understands the orderly and consistent reflection and classification of business transactions.2. Analysis, preparation and interpretation of information 1) determination of the range of users and tasks for the implementation of reporting activities. The purpose of the process is to provide more adequate reporting information. 2) and 3) The purpose is to provide logically coherent and reasonable information, including, if appropriate, analytical and forward-looking conclusions.3. Development and technological implementation of the information system4. The administration of a management accounting system includes the development and maintenance of an efficient and rational system for organizing management accounting.

8. What factors influence the organization of the management accounting system in organizations? 1) features of the legal regulation of the organization's activities; 2) the nature of the activity (production, trade, performance of work, provision of services); 3) the scale of activities (operations); 4) organizational structure o (separate enterprise, consolidated group, etc.); 5) internal performance standards (corporate governance standards, quality standards); 6) availability and characteristics of information support systems for management purposes (for example, software, which allows you to create large databases and manage an integrated database).

9. What costs are direct and indirect? Direct costs These are strictly targeted expenses. They are directly related to the manufacture of products and are included in the cost of a particular type of product by direct counting in accordance with established consumption rates. Such expenses are: basic materials, purchased semi-finished products, fuel and energy for technological needs, basic and additional wages. In the same time auxiliary materials used, for example, for the repair of a machine tool, cannot be attributed directly and directly to the cost of a unit of production. They form part of the indirect (overhead) costs. indirect costs make it possible to produce several types of goods and therefore cannot be directly attributed to a certain type of product. For example, the costs of maintaining and operating equipment, the wages of warehouse workers, etc. General production costs are indirect. In industries where one type of product is produced, all production costs are direct.

10. What costs are fixed and variable?

Variables- those costs that change in direct proportion to changes in production volumes. These usually include: raw materials and materials, piecework wages of the main workers, the cost of packaging, power energy, etc.

Permanent- those costs that do not depend on the volume of production, and with an increase in production volumes, they decrease per unit of output. For example, depreciation of buildings and structures, wages of specialists, etc. It is possible to divide costs into variable and fixed only if the production capacity is fixed and remains unchanged.

11. What groups are fixed costs divided into?

fixed costs are divided into two groups: fixed costs, which are determined by power, and control costs. In turn, fixed costs the first group are determined by the fixed costs of all costs incurred for the redistribution, and management costs are determined by the general economic costs of the enterprise.
12. What is the opportunity cost?

missed opportunities. These are the funds that the enterprise refuses when it uses its resources. and which are modified in terms of the benefits that are lost due to the optimal use of these resources. They represent the costs associated with missed opportunities for the best use of enterprise funds. Opportunity costs arise due to the possibility of choosing between certain economic solutions.

Opportunity costs are hidden, but they must be taken into account when making strategic economic decisions.

13. How are variable costs classified?

1.proportional variables that change in direct accordance with the change in the volume of activity;

2. regressive variables that grow more slowly than the volume of production;

3.progressively variable, growing faster than the volume of production increases.

14. Classification of costs for planning and control.

In terms of plan coverage, costs taken to be divided into planned and unplanned. Planned expenses form the basis of planned, normative and other calculations compiled in advance. These costs are due to the normal conditions of economic activity of the enterprise. There are no planned shortages and damage to raw materials, materials and other products during storage, losses from downtime and other costs caused by shortcomings in technology, organization, production management. Unplanned costs are reflected only in the actual cost estimate. In relation to the volume of production – variables and constants. Variable costs increase or decrease in proportion to the volume of production, i.e. depends on the business activity of the organization

15. What is costing?

Costing products (works, services) is the calculation of the amount of costs per unit (output) of products.

The general costing scheme should involve the definition of the goals and objectives of costing and, on their basis, the choice of the appropriate model.

Accounting for production costs and costing of products are organized as follows:

1) accounting for actual (historical) costs; 2) accounting for standard costs (normative accounting or "standard costing"); 3) accounting for the full cost;

4) limited cost accounting ("direct costing").

In management accounting, the "standard-cost" and "direct-costing" systems should become the most important components of analytical cost accounting and costing.

16. What is the weighted average cost?

means the average assessment of capital for all sources of financing of the enterprise in percentage terms. The calculations use the share of each part of the capital in its total value. The weighted average cost of capital, as a definition, is most often used to financial analysis and overall business valuation, it shows the cumulative level of expenses when all sources of financing are secured. C=(E/K)*y+(D/K)*b(1-t) Where: C is the WACC; Y is the return on equity; b is the total amount of borrowed funds; t is the income tax rate; D is the total amount of borrowed capital; E is the total amount of equity capital; K is the total amount invested ;

17. What is the characteristic of the FIFO method?

First-in-time inventory method . stocks are used in the sequence in which they entered the organization (that is, the stocks that are the first to be put into production or sale are valued at the cost of the first stocks by the time they arrive). A characteristic feature of the FIFO method is that in the cost of products (works, services) the cost price of the earliest acquisitions of materials is taken into account, and the materials in stock at the end of the month are valued at the cost of the latest acquisitions.

Therefore, at high inflation and a significant price growth rate, the use of the FIFO method causes an increase in profit in the income statement, and the cost of inventories is reflected in the balance sheet at a cost close to that prevailing at the time of the report, since the cheaper inventories that arrived first were used in production.

V period of constant price growth method FIFO gives the highest level of net income. Advantages: ease of use; correlation with the normal physical flow of materials; allows you to adjust the amount of profit; the value of the remaining inventories according to the balance sheet is as close as possible to their market value. The assets of the organization are presented more realistically. disadvantage of the method FIFO is that it increases the impact of the economic development cycle on the rate of income. As a result, the real picture of what is happening is not reflected, the organization receives income “on paper”.

18. What is the characteristic of the LIFO method?

The method of estimating at the cost of the latest inventory receipts (LIFO method,last in, first out). Inventory valuation using the LIFO (last in, first out) method is based on the assumption that inventory is used in the reverse order of their entry into the organization (i.e., the inventory that is first put into production or sold is valued at the cost of the last inventory in time).

Wherein material resources, which are in stock at the end of the month, are valued at the actual cost of early acquisitions, and the cost of production takes into account the cost of later acquisitions.

The main idea of ​​the LIFO method is that in the face of rising prices, it creates hidden reserves for the organization.

Concerning, advantage method is that, in conditions of inflation, inventories are written off at the highest cost, that is, in fact, at the last purchase price, which, with a high level of sales of products in the reporting period, brings less profit. The result is a reduction in the tax burden. The application of this method protects the enterprise from sudden financial difficulties and saves money on the payment of dividends, bonuses and taxes.

Flaw: due to the fact that in the balance sheet inventories are valued and reflected at the prices of the first purchases, this assessment often does not coincide with the real value of inventories. This must be taken into account when analyzing equity working capital and the coverage ratio.

19. What is the essence of the normative method of calculation?

normative method. All costs, both direct and indirect, are accounted for in advance developed standards. Then the actual values ​​are compared with those calculated according to the norms. Deviations from the established norms characterize the effectiveness of the work performed. the entire large amount of work associated with the distribution of indirect costs by type of product is carried out as data arrives from the enterprise's shops to the accounting department. After a month, the accountants' calculations are compared with the actual values ​​of indirect costs recorded in the primary accounting documentation. If there are deviations, they are eliminated. Normative rates for the distribution of indirect costs allow not to postpone all work on the distribution of costs at the beginning of the next month, but to carry it out systematically throughout the reporting period.

20. How is the cost calculation based on the direct account method (method) carried out in practice? involves determining the unit cost of production by dividing the total cost by the amount of output produced. This method is mainly used in enterprises. producing homogeneous products. . In practice, its modification is more often used - the calculation and analytical method (method) of calculation, which involves determining direct costs per unit of output based on consumption rates, and indirect costs - in proportion to the attribute established in the industry. After choosing the attribute (base) on which they will be distributed overhead costs, the overhead rate is determined. The latter is calculated as the quotient of dividing the total overhead by the full amount of the base, and then the overhead costs per unit of output is determined as the product of the overhead rate on the base (per unit of output).

21. How is the parametric method of calculation carried out in practice?

This method is used when calculating products of the same type, but different in size and quality. It is based on the establishment of regularities in the measurement of costs depending on the parameters of the product. The simplest and most widely used, for example, in heavy and power engineering, is the method of calculating the cost based on the cost of one kilogram of the structural weight of similar machines and equipment or other indicators that most fully characterize the product. This method also allows you to determine the additional costs for improving the quality parameters of products.

In complex productions, to determine total amount all processing costs. By-products are excluded from the total cost of processing raw materials, and the remaining amount is attributed to the cost of the main types of products. To determine the cost of by-products in the calculations, use:

the current selling prices of the enterprise for by-products; prices for raw materials replaced by by-products; costs for the manufacture of raw materials by by-products; costs for the manufacture of by-products.

22. How in practice is the calculation of the cost price on the per-line method of calculation?

with this method, production costs (starting with the preparation of mining or processing of raw materials and ending with the release of the final product) are taken into account in each workshop (process, phase, stage), including, as a rule, the cost of semi-finished products manufactured in the previous workshop. In this regard, the cost of production of each subsequent workshop is made up of the costs incurred by it and the cost of semi-finished products. With the crossover method, one should use essential elements normative method: the systematic identification of deviations of actual costs from current norms (in some industries - from the planned cost), as well as the identification of changes in these norms. The primary documentation and operational reporting should reflect (per shift, day, decade, etc.) not only the actual consumption of raw materials, basic materials, semi-finished products, process fuel, energy, etc., but also the consumption according to the norms or production based on them tasks (recipes, mixtures, etc.). The use of elements of the standard accounting method should ensure the timely identification of savings or additional costs due to deviations from the established technological process, changes in the composition of consumed raw materials, semi-finished products and materials, the range of products produced, their grade, etc.

Peculiarities of application of the progressive method of accounting with the use of elements of the normative method in certain industries are established in the relevant industry instructions.

With the progressive method, both individual types and product groups can be taken as an object of accounting and calculation, combined on the basis of the homogeneity of raw materials and materials, output on the same equipment, the complexity of production and processing, the homogeneity of purpose, etc. At the same time, costs can be taken into account for the workshop (processing, phase, stage) as a whole, and the cost of individual types of products included in the costing group are calculated using economically sound methods.

The list of redistributions (phases, stages of production) for which cost accounting and calculation of the cost of production are carried out, the procedure for determining costing groups of products and calculating the cost of work in progress or its assessment are established in industry instructions.

23. What is the essence of custom costing?

the object of calculation is a separate order, a separate work that is carried out in accordance with the special requirements of the customer, and the lead time for each order is relatively short. Work is usually carried out in a factory or workshop where an order passes through a series of operations as a continuously defined unit.

This method is applied where each cost unit is different from any other cost unit, and although certain orders are repeated from time to time, it is desirable to determine them anew whenever these costs arise.

Costs are accumulated on a case-by-case basis for each order executed at the factory. The main accounting document for this information is an order-based cost accounting card. (it is written in it Materials used to complete each order. Time spent on each order. Special purchases or other direct costs) After the order is completed, it includes. a predetermined surcharge to cover sales and administration costs. Accounting then compares the agreed selling price with the total cost of the order to determine the profit or loss on that order.

24. What is the essence of the JIT (justintime) method?

the main objective JIT is the elimination of waste in the production process. Distinctive feature JIT It is a production line with high added value. Unlike conventional mass production with downtime and intermediate storage of batches of semi-finished products in the system JIT downtime is minimal. v JIT control is exercised by workers.

JIT (just in time) costing is used in a production system, which is a continuous flow production, in which each operation is a continuation of the previous one, and each part is processed as needed at the next stage of the production line. The features of the JIT costing system are: the absence of orders and detailed accounting of the movement of basic materials and labor costs for operations, the absence of a separate account "Materials". Information about the actually used materials and overhead costs, which include direct labor costs, is collected by workshop every month. Accordingly, the number of units produced and their cost are determined. the standard costs are compared with those received and the deviation is calculated for the shops on a monthly basis.

25. How is direct costing calculated in practice?

The essence of the direct costing system is the division of costs into fixed and variable. Under the direct costing system, the scheme for constructing a report on financial results is multi-stage. An important feature of direct costing is that thanks to it, you can study the relationship and interdependence between production volume, costs and profit. So, on the basis of this method, an analysis of the relationship between production volume, profit, cost, gross proceeds can be carried out. Also, this method allows you to calculate the break-even point of the company, the maximum share of fixed costs that the company can carry out at the current level of profitability.

And now let's consider how in practice it is possible to solve some issues of management accounting with the help of "direct costing".

The direct costing system compares management and financial accounting information necessary for operational forecasting, current analysis and planning. The introduction of the direct costing system into accounting practice will make it possible to link the performance of the organization and its structural divisions according to the "costs - output - result" system.

Thus, when using the direct costing system in combination with any method of organizing production accounting, fixed overhead costs are not reflected in the value of inventory and work in progress. As a result, the question arises of managerial accounting of production costs without the distribution and redistribution of part of the costs, which is based on the principle of grouping costs into variables, conditionally variable, mixed and fixed.

Applying the direct costing method when accounting for general business expenses as part of the cost of goods sold for tax purposes, the company must prove that these expenses are conditionally fixed, that is, their value for each period is constant, does not depend on the volume of production for this period, and the presence costs are not related to other factors, except for the fact of completion of the relevant period. This allows you to separate these costs from the full production cost and accept them as costs for the production of products sold over the same period.

26. What are the advantages of using flexible estimates over static estimates?

Basic estimate is prepared at the beginning of the estimated period for the planned level of production for this period. Since the estimate is built for one level of production, it is called static. When considering deviations from a static budget, no adjustments are made for actual results achieved.

Flexible estimate compiled after the end of the period when the actual volumes are known. Since the flexible budget is based on planned revenues and costs converted to the actual volume achieved for the period, the resulting variances provide managers with more valuable information than the variances calculated using a static estimate.

27. What are the benefits of variance management?

Any enterprise management system requires an accounting system. Indeed, it is impossible to control without having information about the control object.

Depending on the point of view on the financial model of the enterprise, today there are several types of accounting: accounting and tax accounting - in the interests of the state; managerial - in order to manage business processes.

At present, it has become obvious that the maintenance of internal management accounting is necessary for the effective operation of any enterprise. For a modern enterprise the information that traditional accounting provides is not enough. A modern leader needs a greater depth of analysis, greater efficiency, other analytical sections than in accounting.

In practice, certain elements of management accounting are always available at the enterprise. For instance, various forms operational reports provided to the management of the enterprise. It is important that these reports are part of a single system focused on achieving an integral result. At the same time, the forms of operational accounting adopted at the enterprise become part of.

The operational reporting system reflects, first of all, the accepted practice of managing the company's core activities. In principle, for some small companies, the operational reporting system is a kind of almost self-sufficient management system. However, as the size of the business grows, the number and volume of operational reports becomes more and more, and, accordingly, there is a need for their aggregation - the presentation of generalized reports in a more accessible form for analysis. The larger the company, the more important other subsystems become - the cost accounting system and the system of financial performance indicators. At the same time, management should be provided with more aggregated, that is, less detailed reports, which, however, should be able to “decrypt”, that is, obtain more detailed information.

Naturally, the situation when huge overly detailed printouts with sales analysis or cost analysis for hundreds of product items are placed on the table of the head of the entire enterprise is wrong. The manager should receive integrated reports on the table, for example, on the level of sales, profit levels and cost standards, actual cost indicators for the main product groups manufactured by the enterprise.

Accounting for management purposes is a very broad concept. Management accounting in the broad sense of the word is a system of organization, collection and aggregation of data, aimed at solving specific problems. managerial tasks. Both financial and quantitative indicators are important for making managerial decisions. However, as a rule, the higher the level of a manager, the more important financial indicators begin to play. In this configuration, we are talking about accounting for the purpose of managing the enterprise as a whole, so here attention is focused only on the financial part of management accounting.

The main goal of management accounting is to provide the key decision-makers of the company, who make decisions on enterprise management, with complete, operational and easy-to-use information necessary for making decisions and monitoring their implementation.

At the same time, accounting is maintained to reflect the company's activities in official, financial, tax and other reporting by the end of reporting periods. It does not require promptness. It is intended, first of all, to prepare information necessary for external users: tax authorities, creditors, investors.

As follows from the definitions, the objectives of accounting do not coincide with the objectives of management accounting. The difference in goals also implies differences in the ways to achieve them, namely: different data processing algorithms are used, different frequency and, finally, a different set of documents. The object of accounting remains common - the financial and economic activities of the enterprise. And this means that information about business transactions registered in the system (primary documents) can be entered once.

In practice, this is implemented as follows: each primary document generates several sets of postings: accounting and management operations. At the same time, strict synchronization of the corresponding accounting and management operations is not necessary at all. In the general case, one primary document can generate not one operation, but a chain of independent accounting and management operations. The content of these operations, of course, are subject to determination and adjustment in the process of designing, implementing and trial operation of the system.

As a rule, management accounting is conducted in parallel with accounting and partially uses its data (for example, on cash flows). Despite the difference in accounting purposes, it is recommended to build the system of management and accounting of the enterprise in such a way that the structure of the analytical categories of the company's activities in both accounting options allows for mutual control of the completeness and reliability of the information displayed, at least for individual sections of detail.

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The ITAN company has completed the implementation of the standard model according to IFRS of the ITAN: Management Balance subsystem in the QUEENGROUP company. The IFRS model has been installed in the working base "1C: Accounting 8", user training has been carried out, initial balances have been entered. QUEENGROUP is successful Russian company, operating in the field of wholesale sales of cars, transport services, car parts and accessories.

The ITAN company and the BI Partner company have entered into a cooperation and partnership agreement. Within the framework of cooperation, the BI Partner company will promote the ITAN: Management Balance software product. At the moment, negotiations are underway on joint participation in projects for the automation of management accounting in several companies, based on software products.

The ITAN project team completed a project to automate the generation of management reporting in the Podruzhka retail chain. The implementation project was carried out according to the standard project methodology and was completed in 4 months. As a result, the management reporting system based on ITAN: PROF Management Balance has passed trial operation, and allows you to quickly receive such reports as: OBDR, OBDDS, Report

As part of the ITAN financial management automation project, the first stage has been completed - automation of mutual settlements in management accounting. Further, it is planned to finalize operational accounting, comprehensive implementation of management accounting, budgeting and treasury. "Ali

The ITAN project team completed the main work on the automation of management accounting in the Aktion media group. The next stage: the launch of management accounting in trial operation. Aktion media group is the leader of the Russian market of specialized and professional periodicals. CJSC "Aktion-Media" and subsidiaries of the media group have long been publishing

The accounting department of the NPF of Sberbank turned to ITAN to solve the problems of generating a complex balance sheet “Calculation own funds". Read more. The accounting department of the NPF of Sberbank turned to ITAN to solve the problems of generating a complex balance sheet “Calculation of own funds”. To the report was

Subsidiary Liebherr Russland initiated a comprehensive project to automate financial management. The project will begin with the formalization of accounting policies in accordance with IFRS. Currently, the group of companies includes ten industry divisions. The holding company of the Liebherr Group is Liebherr-International AG in Bulle (Switzerland), which is wholly owned by members of the Liebherr family.

The ITAN company won the tender for "Automation of the treasury and the transfer of accounting to a single base", conducted by the company "VIKIMART". The accounting system is based on the configuration "1C: Integrated Automation", with the subsystem "ITAN: Managerial

The implementation of an automated accounting and reporting system in accordance with IFRS will be carried out by ITAN specialists according to the standard project methodology based on the ITAN: Management Balance software product. Read moreCompany "PARTER.RU" turned to us on the recommendation of our customers. The company is faced with the task of automating accounting and reporting in accordance with IFRS. Implementation of an automated accounting and reporting system for

The European legal service improves the efficiency of financial resource management by implementing the ITAN: PROF Management Balance system. The European Legal Service is a significant player in the Russian legal services market and is today recognized as one of the most

"Ochakovsky plant of reinforced concrete products" introduces modern technologies for automation of management accounting on the basis of "ITAN: PROF Management Balance". The implementation is planned by our own IT department. The history of the Ochakovsky Concrete Concrete Plant began in 1990, when an independent enterprise was formed on the basis of workshop No.

Specialists of the ITAN company have completed work on setting up the ITAN: Management Balance system in terms of management accounting in accordance with the accounting policy of HOMAX GROUP. The product "ITAN: Management balance is integrated into the working base" 1C: Management manufacturing plant". As part of setting up the management model

In October 2015, the management of NTZ Volkhov decided to introduce an automated system from ITAN. Read more. The financial department of NTZ Volkhov has long considered the ITAN: Management Balance system as a good option for solving problems of auto

The design department of the ITAN company completed the first stage of setting up a management accounting system at the Nevsky Transformer Plant Volkhov.

The ITAN company won the tender for the automation of the management accounting system in the Yellow, Black and White holding. Read more. ITAN Company won the tender for the automation of the management accounting system in the Yellow, Black and White holding. The management of Yellow, Black and White Group of Companies was looking for a solution on the market that could solve in short time following tasks: Load accounting data from current 1C systems. Implement complex meta

The ITAN company completed a project on setting up financial accounting and reporting in accordance with IFRS in the branch of Alpen Pharma - Alpen Pharma Ukraine.

The ITAN company won the tender for the automation of the financial module in the Vipservice holding. The ITAN company won the tender for the automation of the financial module in the Vipservice holding. The following functional blocks will be introduced as part of the Financial Module project: Management accounting Budgeting

Millhouse has already implemented a standard IFRS model for generating IFRS statements in USD. Millhouse has already implemented a standard IFRS model for generating IFRS statements in USD. Due to different IFRS from the regulated functional currency, discrepancies arose in the accounting for the application of the provisions of IFRS. To solve this problem

The Mirkon company previously worked on the ITAN: Wholesale Trading House 7.7 program, which, in a complex, automated the operational and management accounting of a trading enterprise. moreThe Mirkon company previously worked on the ITAN: Wholesale Trade House 7.7 program, which, in a complex, automated the operational and management

The Avtobau company turned to ITAN specialists on a recommendation to solve the problems of generating accurate and prompt management reporting. The Avtobau company turned to ITAN specialists on a recommendation to solve the problems of generating accurate and operational management

The introduction of an automated accounting and reporting system in accordance with IFRS was carried out according to the methodology of a standard project. The project lasted 4 months, as a result, employees made reports for 2013 in a new program. The introduction of an automated accounting and reporting system in accordance with IFRS was carried out according to the methodology of a standard project. The project lasted 4 months, as a result, reporting for 2013 with

The ITAN project team completed a project to automate budgeting for a complex economic planning model in the Podruzhka retail chain. The implementation project was carried out according to the standard project methodology and was completed in 6 months. As a result, the budgeting model has been tested and Podruzhka has formed a budget for 2013 in the new system. In the future, work is planned to introduce the subsystem "Cash management

The ITAN project team has completed work on automating budgeting in the Aktion media group. As a result of the project, the formation of income and expense budgets and cash flow was automated in the context of items, CFD and projects. The ITAN project team completed work on automating budgeting in the Aktion media group. As a result of the project, the formation of income and expenditure budgets and the movement of funds was automated.

The ITAN company has begun work on the implementation of a standard management accounting model for the ITAN: Management Balance subsystem for the 1C: Trade Management 11.1 configuration at AMARE. The ITAN company has begun work on the implementation of a standard management accounting model for the ITAN: Management Balance subsystem "for the configuration" 1C: Management tor

ITAN specialists completed work on setting up a cash management model for the specifics of HOMAX GROUP. As part of the model setup, the following work was carried out: DDS analytics and payment priorities were set up. The DDS budget model has been set up. The types of payment transactions and applications are distinguished. Org set up. structure and routes of approval of requests for payments. The levels of access to applications and sections of the DDS budget have been determined. On the

ITAN specialists are implementing a standard management accounting model for the ITAN: Management Balance subsystem for the 1C: Trade Management 10.3 configuration at TelecomInvest. Specialists of the ITAN company began to carry out joint work with the Customer on the implementation of a standard model of management accounting for the subsystem "ITAN: Management database

In 2012, the Lendor company acquired the ITAN: Management Balance software product in order to automate the accounting and reporting system in accordance with IFRS. In 2012, the Lendor company acquired the ITAN: Management Balance software product in order to automate the system

IT department of "MC Raiffeisen Capital" start the process of transferring the company's existing "1C: Accounting 2.0" to "1C: Accounting 3.0". more IT Department of Raiffeisen Capital Management Company, start the process of transferring the company's existing 1C:Accounting 2.0 to 1C:Accounting 3.0. In this regard, in order to maintain the current IFRS accounting system based on ITAN: Management Balance, it also needed to be updated. But keep it

"TatSotsBank" held a tender for the automation of the bank's treasury. The bank needed a modern tool for solving problems. More. "TatSotsBank" held a tender for the automation of the bank's treasury. The bank needed a modern tool for solving problems: Budgetary control of BDDS by limits. Formation and approval of applications for payments and their verification for limits. Building a payment calendar. Control

The company "Design-Fashion" contacted us in September 2014. The company faced the task of automating management accounting for a group of companies. The management of the company decided to automate the management accounting system based on software

Automation of budget management is carried out using the subsystem "Budgeting", which is important component software and methodological system "ITAN: Management Balance". Implemented: 1. Automatic calculation of the cash flow budget based on the profit and loss budget, taking into account coefficients, VAT calculation, calculation of payment schedules and cash gap planning.

The company faced the task of automating management accounting and budgeting. To implement these tasks, the company's management decided to purchase the ITAN: Management Balance software product. Cooperation with MIR GAZ started in November 2014. The company faced the task of automating management accounting and budgeting. To achieve these goals, the leadership

01/20/2016. Standard implementation of management accounting in "Maguros" More. Cooperation with the company "Maguros" began with the implementation of a test case by ITAN specialists according to the Customer's data. After the implementation of the test case, the management of the company "Maguros" made the final decision on the implementation of software "ITAN: Management Balance". The Maguros company will solve problems

ITAN and Ginza Project are starting to implement the ITAN: Management Balance program to improve the efficiency of financial management. The management of the Ginza Project holding has decided to introduce an integrated system of budgeting, management accounting

Implementation of an automated system Implementation will be carried out according to the methodology of a standard project, with a preliminary examination of the methodology for transforming RAS data into IFRS, and its subsequent description in the ITAN: Management Balance system. Synovate Comcon is part of the Ipsos international research network, one of the top three in the global market. Globally, Ipsos is present in 80 countries. In Russia Synovate Comcon and

Specialists of the ITAN company completed work on the translation and adaptation of the management accounting and budgeting model performed on ITAN: Management Balance and 1C: Accounting 2.0 under edition 3.0 of the 1C: Accounting configuration in the Taber Trade company (chain of stores " Girlfriend"). The Podruzhka chain of stores is an active and successful Russian chain of stores

Omsan Logistic started cooperating with us in the middle of 2011. The main task was to automate the accounting and reporting system in accordance with IFRS.More detailsOmsan Logistic started cooperating with us in mid-2011. The main task was to automate the accounting and reporting system in accordance with IFRS. The company's management decided to automate IFRS based on the ITAN: Management Balance software product, using

Cooperation between ITAN and Alpen Pharma began with the implementation of the first test case of accounting in accordance with IFRS of the Customer in the ITAN: Management Balance system. Cooperation between ITAN and Alpen Pharma began with the implementation of the first test case of accounting in accordance with IFRS of the Customer in system "ITAN: U

In 2011, we started cooperation with Edil-Import. The company was faced with the task of automating management accounting, in connection with which the ITAN: Management Balance software product was purchased. More In 2011, we began cooperation with the Edil-Import company. The company had the task of automating management accounting, in connection with which the software was purchased

The following functional blocks have been introduced within the framework of the project: Cash flow budgeting, Treasury, Approval of documents. Client: V.I.P. Service" / "V.I.P. Service" Project: Automation of cash management on the configuration "ITAN: Management balance" and "1C: Management

The ITAN team of implementers has begun work on automating the operational management of cash in the Aktion group of companies. The implementation will be carried out according to the methodology of a standard project, which guarantees successful implementation. The ITAN implementation team has begun work on automating the operational management of funds in the Aktion group of companies. The implementation will be carried out according to the methodology of a standard project, guaranteed

The ITAN company has completed work on the development of the "Contract Management" subsystem for the tasks of "NPF Sberbank" for accounting business contracts.

Specialists of the ITAN project team completed the project for the implementation of an automated budgeting system in the Podruzhka retail chain. Specialists of the ITAN project team completed the project for the implementation of an automated budgeting system in retail

The ITAN company and the Baltis company signed an agreement on the implementation of management accounting based on 1C: Trade Management and ITAN: Management Balance. The main implementation work has been completed, the system is undergoing trial operation. "Baltis" is a Latvian canned food supplier and wholesaler.

The ITAN company and the Regent holding are launching a joint project to automate management accounting, budgeting and cash management. The implementation will be carried out mainly by the IT department of the Regent holding with the participation of ITAN consultants for training and

The Etan company has completed the stage of trial operation of the automated cash management system at the Ostek Enterprise CJSC. The system has been put into commercial operation and is functioning stably. All cash flows are reflected in the system, regular input and approval of applications for payments is carried out. Forecasting payments and creating a payment calendar is carried out

Specialists of the ITAN company have completed the implementation and configuration of the standard model "Data Consolidation" of the system "ITAN: Management Balance" and the standard model "Data Consolidation" for 11 information bases of companies included in the banking group of CB "Energotransbank" (JSC).Specialists of the ITAN company completed work on the implementation and configuration of the standard model "Data Consolidation" of the system "ITAN: Management Balance" and the standard model "Data Consolidation" for 11 information bases of companies, entering

In July 2016, the NPF of Sberbank carried out a planned transition to a new edition of the accounting program: 1C: Accounting 3.0 + 1C: Management of NPF 4.0, in which the ITAN: Management Balance subsystem is built in, this system is used for budgeting, to

The company "ITAN" begins work on the project of automation of consolidated management accounting and budgeting of the group of companies "AGAMA". The company "ITAN" begins work on the project of automation of consolidated management accounting and budgeting of groups

ITAN specialists automated cash management in Aktion media group. As a result of the “Standard Project”, the following cash management business processes were automated: 1. Setting budget limits for the Central Federal District, budget items and projects; 2. Formation, budgetary control and electronic approval of applications for payments; 3. Formation of the register of payments; 4. Build

ITAN specialists completed work on automating cash management and transferring accounting to a single base for the VIKIMART company. During the implementation project, the following work was performed: Terms of reference were written according to the rules for converting 4 databases "1C: Accounting

In just 2 months, literally from scratch, our ITAN specialists wrote a subsystem for the 1C configuration: Salary and personnel management. Now the system allows the correct allocation of accounting items, with convenient scenario planning of the budget for the year. Additionally, we have included a double check method for reliability. correct calculation hence for the efficiency of financial management. Employees of STS Eventim ru are already successfully working

Specialists of the ITAN company successfully completed the project on setting up and automating the financial management system in AKTION-DEVELOPMENT and launched the systems into commercial operation. Specialists of the ITAN company successfully completed the project on setting up and automating the financial management system in AKTION-DEVELOPMENT and launched systems in prom

ITAN specialists completed a project to automate the plan-fact analysis of revenue in the company "STS Eventim RU" based on the configuration "1C: Enterprise Accounting 2.0" RU" based on con

Management Accounting- this is an ordered system for collecting, registering, summarizing and presenting information about the economic activities of the organization and its internal structural divisions, necessary for making managerial decisions.

Information requirements for management accounting

There are a number of specific requirements for information for internal management. She must be:

operational, formed on the principle of "the sooner the better." The minimum accounting period of one month is unacceptable for most management tasks. If there is a choice between accuracy and speed of obtaining data for management, the manager will usually prefer the latter;

target, i.e. aimed at solving specific management problems;

targeted, having a focus on a specific consumer - the manager and the tasks he solves. Targeting should take into account the level of the official hierarchy of officials in the organization's management apparatus;

sufficient. Management accounting information should not be redundant, but quite sufficient for making appropriate decisions. Its sufficiency is largely ensured by the analyticity of the data or the possibility of their use in economic analysis. This allows, with a certain limitation of the initial indicators for management, to widely use their derivatives, the results of analytical calculations, groupings, comparisons, etc.;

economical to obtain and use;

flexible, adapted to the possibilities of changes in the business. The market economy is distinguished by the dynamism of development, the uncertainty of many economic situations, and their multivariance. Accordingly, the management accounting system should not be stable, unchanged for many years. On the contrary, it should be subjected to constant renewal, improvement and development in form, scope and content.

What does management accounting provide?

Well-designed management accounting:

contributes to the success of enterprises;

ensures high rates of their strategic development;

allows management to quickly receive the necessary accounting and analytical information;

provides organization competitive advantages through cost management, business operations and general management organization;

structures different types and directions of activity of the enterprise;

provides an assessment of the contribution to final result various structural divisions.

Strategic and current management accounting

According to the intended purpose, management accounting systems can be divided into strategic accounting for the top management of enterprises, companies, firms and current accounting for internal management.

Goals of management accounting

The main goal of management accounting is the preparation of planned, actual and forecast information about the activities of the organization and its external environment for making the necessary management decisions.

Users of management accounting information

The main users of management accounting information are senior managers, heads of structural divisions and specialists.

Senior managers are usually provided with:

management information in the form of reports on the results of the production, financial and investment activities of the organization and its structural divisions for a specific period of time and for the past;

analysis of the impact of identified internal and external factors on the performance of the organization and its main structural divisions;

planned and forecast indicators for future periods.

Heads of structural divisions are provided with:

management reports on the activities of units at a specific point in time;

planned and forecast information about the divisions, as well as the necessary information about the counterparties of the organization.

Specialists receive the necessary information about the activities of the organization and its structural divisions, as well as forecasts of the impact of identified internal and external factors on the results of the economic activity of the enterprise.

Objects of management accounting

The objects of management accounting include:

1. The costs of the enterprise and its structural divisions.

2. Results of economic activity.

3. Internal pricing.

4. Forecasting future financial transactions.

5. Internal reporting.

Tasks of management accounting

The main task of management accounting is the preparation of internal reports, the information of which is intended for the owners of the enterprise (organization) and the management apparatus.

These reports should contain information about the general financial position of the enterprise, the state of affairs in production activities.

The information that is necessary for making managerial decisions, controlling and regulating managerial activities can include, for example:

selling prices;

production costs;

demand, competitiveness, profitability of goods produced by their enterprise.

The main tasks of management accounting are:

analysis of the state of material, labor and financial resources and compilation of information on these resources;

analysis of costs and revenues and deviations from established norms and estimates;

calculation of various indicators of the actual cost of products (works, services) and deviations from standard and planned indicators;

payment financial results activities of individual structural divisions by responsibility centers, products sold, work performed and services rendered;

control and analysis of the financial and economic activities of the organization, its structural divisions and other responsibility centers;

planning the financial and economic activities of the organization as a whole, its structural divisions and other centers of responsibility;

providing information on the impact of expected future events based on an analysis of past events;

presentation of management reporting for making the necessary management decisions in the future.

management accounting requirements

The information generated by the management accounting system must meet the following requirements:

authenticity. Reliability is understood as the ability for a competent user to draw correct conclusions based on accounting and reporting data;

completeness. The completeness of management accounting means the sufficiency of information for the management of the enterprise and its divisions, the ability to ensure this sufficiency. The most complete are management accounting systems, including the use of accounts and double entry, providing control not only over the costs and results of current activities, but also over inventories, investments, and the effectiveness of functional business management;

relevance. Relevant from the standpoint of making a managerial decision are data and information that takes into account the conditions in which the decision is made, its target criteria, which have a set of possible alternatives and characterize the consequences of the implementation of each of them;

integrity. This means that management accounting must be systemic even when it is maintained without the use of primary documentation, accounts and double entry. Consistency in this case means the unity of the principles for reflecting accounting information, the relationship of accounting registers and internal reporting, ensuring, if necessary, the comparability of its data with accounting and reporting indicators;

clarity. The clarity of management accounting information is ensured by reflecting the results of the analysis of the obtained indicators in the accounting registers, presenting data in the form of analytical tables, graphs, time series, etc.;

timeliness. The timeliness of management accounting means its ability to provide managers with the necessary information by the time of decision-making;

regularity. It is also important that internal reporting be regular; repeatable in time.

Thus, the data of well-organized management accounting make it possible to identify areas of greatest risk, bottlenecks in the organization's activities, inefficient or unprofitable types of products and services, places and methods for their implementation.

They are used to determine the most favorable assortment of products and works for given conditions, prices and tariffs for their sale, discount limits under different conditions of sale and payment, to assess the effectiveness of additional costs and the rationality of capital investments.

Only according to management accounting data, it is possible to choose the best option for solving problems such as: “produce it yourself or buy it”, “how much is it profitable to buy and sell”, “what equipment should an order be placed on”, “in what cases equipment repair better shopping new cars, etc.

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Management accounting: details for an accountant

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