The essence and purpose of management accounting

Introduction

In a market economy, effective management of the production activities of an enterprise is increasingly dependent on the level of information support of its individual departments and services.

The first statements about the need to form an independent information system about production costs and what it should be appeared at the beginning of the twentieth century in the book by G. Emerson "Labor productivity as the basis of operational work and wages." In this work, for the first time, an attempt was made to single out the accounting of production costs as an independent direction of accounting work.

Another important circumstance that contributed to the creation of management accounting as an independent field of accounting was the establishment in the United States of the national association of production accountants, which arose in October 1919 on the initiative of J. Lee Nicholson, a figure in the field of factory accounting. This association has played a major role in the development and retraining of US accountants.

A practical step towards the establishment and development of management accounting was the separation of accounting (management) accounting from the general accounting service of the enterprise. The creation of two independent financial and accounting departments was associated primarily with the expansion of production, the growth of its concentration, with the centralization of capital, with the formation of large companies, as well as with the need to preserve their commercial secrets.

This circumstance in a certain way influenced the formation of the unified national accounts. So, before the Second World War in the countries of continental Europe (France, Germany, etc.), national accounts were presented by accounts of financial and managerial accounting in a single form.

The emergence of management accounting as an independent academic discipline is associated with the American Association of Accountants, which developed in 1972 a program for obtaining a diploma in management accounting and assigning graduates the qualification of an accounting analyst. This year marked the formal separation of accounting into financial and management accounting.

In the Soviet economy, persistent attempts were made more than once to introduce internal cost accounting, self-sufficiency and self-financing. The object of cost accounting in this case was the production and non-production divisions of the enterprise, and the object of cost accounting income was the funds earned by them. This approach, in essence, served as a prototype for one of the concepts of management accounting - management by responsibility centers.

The basis of management accounting is the collection of information about the costs of the organization and calculation. Domestic practice has deeply worked out the issues related to calculation. A wealth of theoretical and practical experience has been accumulated in the field of the normative method of cost accounting and calculation, so similar to the "standard cost" system in management accounting.

Turning to the past, one cannot help wondering why the techniques and methods of management accounting in our country did not give the desired result? The answer lies in the absence at that time of the owner interested in increasing the return on his invested capital by saving production costs. Only in conditions of market relations is it possible to objectively integrate management methods into a unified management accounting system.

In the context of the isolation of enterprises with different forms of ownership, the inclusion of free pricing and independent planning mechanisms, the development of other aspects of the market economy, the target orientation of the entire accounting system of the enterprise and its modern purpose - the formation of an information and analytical base for making management decisions, change.

The purpose of this work is to explore the essence and purpose of management accounting in an organization. To achieve this goal, you must complete the following tasks:

determine the objects of management accounting and methods of managing them for the effective operation of the enterprise;

consider the management accounting systems operating in market relations;

to identify the functions of management accounting that contribute to obtaining the maximum possible profit, which is the goal of any enterprise.

1.1 The essence and purpose of management accounting

Management accounting is an independent direction of accounting, which provides the management apparatus of an enterprise with the information necessary for operational management, which is an information and computing system that combines a set of forms and methods of planning, accounting, control and analysis, aimed at forming alternative options for the functioning of an enterprise and intended for information support of the management decision-making process.

The task of management accounting is to compile reports of the second and third groups, the information of which is intended for the owners of the enterprise where the accounting is carried out, and its managers (managers), that is, for internal users of accounting information. Management accounting is the link between the accounting process and enterprise management.

Management accounting, organized on the basis of the goals and objectives of managers, is not regulated by the state in any way, serves only the interests of the enterprise, which is its advantage over financial accounting. The general principles of this accounting are to provide the management with useful information as much as possible. Management accounting is more based on logic and experience or general acceptability. In this sense, we can talk about the decentralization of management accounting, as well as about its confidentiality.

1.2 Objects of management accounting

The objects of management accounting are:

costs (current and capital) of the enterprise and its individual structural units - centers of responsibility;

the results of economic activities of both the entire enterprise and individual centers of responsibility (segments of the enterprise);

internal pricing involving the use of transfer prices;

budgeting and internal reporting.

The formation of information about production costs in management accounting is based on the development of their corresponding classification, analysis of the behavior of costs, control and determination of ways to reduce them. In management accounting, depending on the goals and objectives of management, when classifying costs, various grounds (signs) are distinguished. At the same time, the fundamental principle on which a scientifically grounded classification of costs is based is the principle of differentiating the concepts of "costs" and "costs", the difference between which concerns the time factor.

Expenses - the cost of used resources that are fully expended or “spent” during a certain period to generate income. This period does not necessarily coincide with the time of the actual payment for the resource.

Costs - cash payment for purchased goods or services, which will eventually be deducted from profit (written off as expenses). In the balance sheet, they are reflected as assets.

Thus, expenses are part of the costs incurred by the enterprise in connection with the receipt of income.

The current production activity of the enterprise is accompanied by costs of various types of relative importance. The main elements of production costs include the following:

direct costs of materials - raw materials and materials used in the production process. They are physically incorporated into the finished product and the process of their transformation into final products can be traced.

Direct costs of wages - basic wages, additional payments and deductions to off-budget funds from the wages of basic production workers, whose work is directly related to the production process of manufacturing products or providing services.

Production activities also include production overhead costs, which include three types of costs:

Indirect material costs - the costs of materials that are required for the production process, but do not become an integral part of the finished product;

Indirect labor costs - the cost of maintaining personnel not directly related to the manufacture of products, but whose services are necessary for the implementation of the production process (foremen, foremen, heads of production departments, controllers, storekeepers);

Other overhead costs are expenses for the maintenance and operation of equipment, general production costs, in particular, depreciation of production facilities and equipment (fixed assets), utilities, costs of divisions serving the main production.

Business transactions that are exclusively financial in nature (transactions with securities, sale or purchase of property, etc.) are outside the scope of the subject of management accounting.

The subject of management accounting is the production activity of the organization and its individual structural divisions (segments), called centers of responsibility, headed by managers who are responsible for the results of their work.

Segment accounting is the most important component of management accounting. Segmental accounting can be defined as a system for collecting, reflecting and generalizing information on the activities of individual structural divisions of an enterprise. An enterprise management control system is built on the basis of segmental accounting information. Segmental accounting data satisfy the information needs of in-house management, allow you to control costs and results at different levels of management, and prepare segmental reporting. Analyzing the latter, one can judge the efficiency of functioning of one or another structural unit of the enterprise.

Based on the information of segmental accounting and reporting, the administration of the enterprise can make various management decisions, for example, about the advisability of unbundling (decentralization) of the business.

Currently, in accounting, all income should be correlated with the costs of obtaining them, called expenses (the principle of correlating income and expenses). Production costs and overhead general operating costs in aggregate make up the total cost of products (works, services) (Fig. 2).

LECTURE COURSE

for students of the field of study 080100 Economics

profile "Accounting, analysis and audit" (qualification "Bachelor")

Novosibirsk 2013

Department of Distance and Combined Educational Technologies

Management accounting: a course of lectures / Novosib. state agrarian un-t. ISOP: Comp. Krasnoslobodtseva A.V. - Novosibirsk, 2013 .-- 72 p.

© Novosibirsk State Agrarian University, 2013

Section 1. Course of lectures on the topics studied

1. The essence and purpose of management accounting. ……………………………… .................... 4

2. Costs and their classification ……………………… ... ……………………………………… 8

3. Organization of accounting of production costs ………………………… .............................. 14

4. General principles of calculation .. ……………………………………………………… 21

5. Classification of cost accounting and costing methods depending on the cost accounting object ……………………………………………………………………… ... 25

6. Classification of cost accounting and costing methods depending on the completeness of accounting. …………… .............................. .................................................. ..................... 31

7. Actual and regulatory accounting, the "Standard-cost" system ………………………… 36

8. Use of management accounting data …………………………………………… 40

9. Budgeting and cost control …………………………………………………… ... 44

Section 2. Lecture course in diagrams and tables…………………………………………52

Section 1. COURSE OF LECTURES ON THE STUDYED TOPICS

Questions:

1. Concept, purpose, objectives of management accounting and its basic principles

2. Information of management accounting and requirements for it

3. Comparative characteristics of financial and management accounting

4. Production accounting - an integral part of management accounting

1. Concept, purpose, objectives of management accounting and its basic principles

The accounting system, along with financial accounting, also includes management accounting.

Management accounting is the link between the accounting process and management. The management accounting system generates information about expenses, income and results of the enterprise, which makes it possible to make important economic decisions.

It should be noted that there is no official definition of management accounting in the legislative acts that are part of the regulatory system of the Russian Federation, since its organization is an internal affair of every enterprise. Also, at the moment, there is no ideal definition that would suit all specialists in this field. However, most of them view management accounting as a system of accounting, planning, control, analysis of information on costs and results of economic activities, which is necessary for managing personnel for management.

The purpose of management accounting is to help managers make effective management decisions. This goal is realized in his tasks.

Management accounting tasks:

1) the formation of reliable and complete information about on-farm processes and results of activities and the provision of this information to the management of the enterprise by drawing up internal management reporting;

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

3) calculation of the actual cost of products (works, services) and determination of deviations from established norms, standards, estimates;

4) analysis of deviations from planned results and identification of the reasons for deviations;

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

6) formation of an information base for decision-making;

7) identification of reserves for increasing the efficiency of the enterprise.

The methods used in management accounting are very diverse, since it combines the methods of many disciplines: accounting (operational, accounting, statistical), analysis, strategic and operational planning and management, enterprise economics, statistics, mathematics, etc.

The management accounting system must meet certain principles.

The basic principles of management accounting include:

1) The principle of reliability determines the reflection in management accounting of economic information is reliable and adequate.

2) The principle of relevance is to determine the economic feasibility of the development and implementation of elements of the management accounting system. The costs of forming an accounting system should not exceed the economic effect of such an implementation, while accounting data should be simple and understandable for any regrouping of information. Thus, the collection and processing of information is considered appropriate if its value for management is higher than the cost of obtaining it.

3) Going concern of an organization -is expressed by the lack of intentions to self-liquidate or reduce the scale of production and means that the organization will develop in the future. This principle aims at creating an information service for solutions to long-term problems: analyzing the competitiveness of production, supply of raw materials and materials, changing the assortment and mastering new products, investments, etc.

4) Assessment of the results of the activities of structural divisions of the organization provides for the definition of trends and prospects of each division in the formation of the company's profit from production to product sales.

5) Continuity and reuse of the primary and intermediate information for management purposes information, sometimes called principle of complexity... The essence of the principle lies in a one-time fixation of data in primary documents or production calculations and their repeated use for all types of management activities without re-fixing, registration or calculations.

6) Formation of indicators of internal reporting as the basis of communication links between the levels of management is associated with the ability of management accounting to form indicators of internal reporting according to primary accounting data, which are subsequently transformed into consolidated documents of various departments of the organization. At the subsequent levels of the organizational structure, the consolidation and formation of the reporting consolidated documentation is carried out.

7) The principle of periodicity lies in the fact that when forming a management accounting system, it is necessary to take into account the time period when the need for information arises from managers. As a rule, for this, a schedule is established for the collection of primary data, their processing and grouping in the final information, which is due to the needs of management.

8) Control in the management accounting system should be based on the use of correct information that meets the principles of completeness and analyticity, so that there is always the possibility of its objective interpretation, analysis, comparison.

2. Management accounting information and requirements for it

Accounting information acts as a source for developing optimal management decisions.

For management accounting information to be useful for managers in running a company, it must meet the following requirements:

1. Persistence - in order to make appropriate management decisions in a timely manner, it is necessary to constantly compare the available data with similar ones, thus, the submitted management accounting information should be prepared on an ongoing basis every time.

2. Accuracy- if the information is not accurate, then it is of little use to the management. Inaccurate information leads to the adoption of incompetent decisions, which adversely affects the results of the enterprise.

3. Relevance- the management accounting information provided to each manager should relate to the decisions to be made. Studying irrelevant information is a waste of time and can distract you from the real problems of the solution.

4. Comprehensibility - if the information is incomprehensible to those for whom it is intended, then it is useless information, and decision-makers will ignore it regardless of its importance. The information should be presented to the user in an understandable form. To do this, it is necessary to discuss and agree with the information users in advance the forms and content of management accounting documents.

5. Timeliness - Management needs the most recent information to manage.

If management accounting information does not have these properties, then it is likely that the costs of obtaining it will not justify the benefits it brings. If the information meets all of the above characteristics, then decisions made on the basis of such information are much more likely to be correct.

The list of management accounting information at enterprises is diverse. The main source of information is management accounting reporting.

1. Comparative characteristics of financial and management accounting

(table 1 of section 2)

4. Production accounting - an integral part of management accounting

In the literature, the concepts of "management" and "production" accounting are often identified, which is erroneous. Historically, production accounting is the forerunner of management accounting. Production accounting systems were previously developed as accounting systems, the main purpose of which was to determine the cost of production and revenue per unit of production.

Production accounting today is designed to keep track of production costs, analyze the reasons for cost overruns compared to previous periods, estimates or forecasts, and also identify possible savings reserves. It must clearly and in detail reflect all the processes associated with the production and sale of the company's products.

The main sections of modern production accounting are:

1) Cost accounting by type (shows what groups of costs have arisen at the enterprise in the process of manufacturing products in the reporting period);

2) Cost accounting by location (allows you to distribute costs between individual divisions of the enterprise (centers of responsibility) in which they were incurred;

3) Cost accounting by media (involves the determination of all costs associated with the production of a unit of any specific product or with the implementation of a specific order).

T. about. within the framework of production accounting, it is possible to calculate the cost of a unit of production, the profit attributable to it and the level of profitability.

Production accounting information is necessary for managers to make only operational production decisions.

Consequently, production accounting is the "base" of management accounting. And the "superstructure" part of management accounting is budgeting, management analysis and control of the organization and its segments, as well as the preparation of internal reporting.

Topic 2. Costs and their classification

Questions:

1. The concept of costs, expenses and costs.

2. Classification of costs.

2.1. Classification of costs to determine cost, estimate the value of inventories and profit earned.

2.2. Classification of costs for decision making, planning and control.

2.3. Grouping of costs by economic elements and costing items (by type).

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Plan

• Introduction 3
• 5
• 5
• ……………………………………………………………………………………….. 9
• 2.1 The role of accounting in management 9
• 12
• 13
• Conclusion 21
• 24
• Appendix A 25
• Appendix B 26

Introduction

The term "management accounting" has recently become more and more common in the specialized literature. Sometimes it is understood as "double-entry bookkeeping", tax evasion. It is sometimes believed that management accounting provides more reliable data than official accounting. This understanding of management accounting introduces some confusion into the work of people who are more or less related to accounting. On the one hand, the head of the organization needs reliable data to make informed management decisions, which he requires from the chief accountant. On the other hand, the chief accountant, who conducts mutual settlements of the organization with the state and clients, does not always understand why they need to draw up any additional reports that are not required by external regulatory bodies. Here sometimes disagreements arise between the manager and the chief accountant.

These contradictions arise not because of the lack of professionalism of the chief accountant and not because of the excessive demands of the head of the organization. They are based on a different vision of the goals for which reporting is prepared. The state sets one of its goals to increase the collection of taxes. Therefore, all the requirements for accounting are aimed exactly at this. The reliability and accuracy of accounting information must be observed in order for the tax authorities and various extra-budgetary funds to control their settlements with organizations as closely as possible.

Obviously, in order to satisfy the above goals, it is necessary to use various methods of collecting, processing and reflecting information. In international practice, this problem is solved by dividing the entire accounting system of the organization into financial and management. Financial accounting information is provided to both internal and external users, and management accounting information is provided only to internal users.

The relevance of the chosen topic is due to the fact that at present, organizations and enterprises mainly conduct traditional accounting. Management accounting is either not kept separately or is very poorly developed. In these conditions, the entire accounting system in the organization is put on one scale. Naturally, such a system cannot function well in modern conditions. It would seem that a way out of this situation suggests itself: it is necessary to put the entire accounting system on both "scales", that is, along with financial accounting, to keep management accounting.

The purpose of this work is to study the comparative characteristics of production, management and financial accounting.

To achieve the set goals, it is necessary to solve a number of the following tasks:

- to identify items and objects of production, management and financial accounting;

- to give a comparative description of production, management and financial accounting.

In this work, textbooks edited by V.B. Ivashkevich, V.E. Kerimov, T.P. Karpova were used. "Management accounting" and others.

1. Purpose of management accounting, scope and features of its application

1.1 Purpose of management accounting

Management accounting is an integral part of the enterprise management system. It is designed to provide the formation of information necessary for:

- monitoring the efficiency of the current activities of the organization as a whole and in the context of its individual divisions, types of activities, market sectors;

- planning the future strategy and tactics for carrying out commercial activities in general and individual business operations, optimizing the use of material, labor and financial resources of the organization;

- measuring and evaluating the efficiency of management in general and in the context of organizational units, identifying the degree of profitability of certain types of products, works, services, sectors and market segments;

- adjusting control actions on the course of production and sale of products, goods and services, reducing subjectivity in the decision-making process at all levels of management.

Based on this, the main tasks organization of management accounting is an orientation towards achieving a predetermined goal of entrepreneurship, the need to provide alternative options for solving the task, participation in the choice of the optimal option and in the calculation of the normative parameters for its implementation, an orientation towards identifying deviations from the specified performance parameters, interpreting the identified deviations and their analysis In addition, it is necessary to observe the general principles of generating information for management: the principle of ahead of time for making a management decision and the principle of responsibility for its consequences. A correct assessment of upcoming expenses and income is much more important than a statement of missed opportunities. At the same time, if there is no responsibility for the results of management at all levels of management, it makes no sense to keep management accounting.

The purpose of management accounting and the scope of its application differ quite significantly in the initial period of its separation from accounting and subsequently. At first, management accounting was considered as cost accounting, operational and technical accounting, and production accounting; its framework, at best, was limited to additional analytical accounting registers.

Then, special attention was paid to the efficiency of accounting for costs and results of enterprises' activities. In the USSR, there were options for the daily accounting of production costs and the prompt identification of financial results of activities. Based on traditional accounting methods of generating information, they failed due to great conventions and errors, but mainly due to the lack of demand for this information by the system of centralized management of the enterprise's economy.

In the West, already in the 30s. the responsibilities of production (management) accounting included:

- accounting of expenses by places of their occurrence;

- identification of deviations of actual costs from standard or estimated;

- assessment of the remains of work in progress;

- determination of the cost of certain types of products and the results from their sale.

Over time, the range of management accounting tasks has expanded significantly. Currently, in addition to the above appointments in countries with developed market economies, the following tasks are distinguished accounting for management:

- recording and reporting costs, including classifying, summarizing, presenting and interpreting cost data for interested users;

- determination and assessment of the amount of costs for specific products, services or places of formation of costs, centers of responsibility;

- cost management and cost analysis, i.e. presentation of cost data in the form of information suitable for management planning and control, for use by management personnel in decision-making.

Of these functions of production accounting, the first two functions are traditional for our production accounting, and the last is an innovation.

Cost management and cost analysis deal with projected, or planned, costs as well as past costs. They include budgeting of the costs of the main activities, their control and cost management for decision making.

The plan is a quantitative expression of the goals of an economic entity for a certain period of time and the development of ways to achieve them. Management accounting, on the one hand, provides planning with the information necessary for calculations, and on the other hand, it uses the indicators of the plan as a basis for comparing and monitoring its implementation.

Usually in management accounting, two main directions of comparison are used: with the past period and with the internal budget of costs and results of activities.

Rationing plays an important role in management accounting. It contributes to the timely identification and prevention of irrational spending of funds, determines the limit values \u200b\u200bof costs and benefits, simplifies the technique of calculating and analyzing the cost of production. Management accounting helps to assess the degree of technical and economic feasibility of norms and standards, identifies underestimated, outdated norms, contributes to their timely revision.

Operational accounting for management is part of its overall system. It reflects the actual values \u200b\u200band indicators of the availability, movement and use of the enterprise's resources per shift, day, week and other periods within the reporting accounting time (month, quarter, year). In addition, it differs from accounting by focusing on the information needs of the heads of the enterprise and its departments and fixing mainly deviations, rather than absolute values \u200b\u200bof availability, income and expense. Operational accounting is used for daily control and management of business processes, compliance with technical and economic parameters of production and sales of products, as well as other activities.

2. The essence of accounting for enterprise management, its difference from financial accounting

2.1 The role of accounting in management

The basis of the market economy of the state is made up of economic organizations (enterprises, firms, companies) of various forms of ownership, using economic resources to carry out commercial activities. It is a complex combination process for the production and sale of goods and services, which involves labor, land and capital. Each of the listed components can be presented as costs associated with the implementation of business activities. All the main processes of production and economic activity of the enterprise: supply, production, sales and coordinating their management function are directly related to the expenditure of labor, material and financial resources. These expenses can be considered justified if as a result of their implementation, income is obtained in excess of the costs incurred. In essence, enterprise management is a combination of various production and non-production factors, actions and opportunities for entrepreneurial activity, the ultimate goal of which is to make a profit, i.e. excess of income over expenses.

Management is impossible without information or a set of information about the state of the controlled system, control actions and the external environment. In this understanding, economic information acts as the basis for the preparation, adoption and implementation of management decisions.

The control process is implemented in the form of a certain sequence of decisions, the effectiveness of which can be tested only on the basis of obtaining information about intermediate and final results that reliably and timely reflect the state and behavior of the controlled parameters.

All stages and stages of the management process are associated with information processing. Without information, it is impossible to determine the goals of management, assess the situation, formulate a problem, make a decision and monitor its implementation.

Economic information for the management of economic organizations is formed in the systems of planning, accounting and analysis of production and financial activities. In the conditions of computer data processing, the functions of these systems are integrated. The formation of information is assigned to financial and production (management) accounting, which perform the functions not only of measuring and recording the actual values \u200b\u200bof the availability, movement and use of resources, but also their planning. Economic analysis should be equally inherent in all types of accounting, including financial and management.

In general terms, the system for providing an enterprise with economic information can be represented as the following diagram (see Appendix A).

Management Accounting -

The statement that accounting was originally intended for the management of business activities is hardly in doubt. Initially, the merchant himself, the owner of the workshop or other merchant, and then hired or professional accountants, making records of acquisitions and expenses, movable and immovable property, debts to creditors and debtors' debts, did them for themselves, for their own needs of managing the business of the enterprise. They needed accounting so as not to forget, so that, if it comes to court proceedings, exactly reproduce the circumstances of the disputed transaction or debt. Hence the memorial nature of many registers and forms of accounting (memorium - lat. - memory), legal interpretation of its development. Even when accounting began to include the calculation of costs and the calculation of costs, this was done for the owners and managers of the enterprise in order to ensure the economy of its activities, orientation in pricing, assess the profitability of production and sales of certain goods, i.e. for business management.

Gradually, as economic relations became more and more developed and diversified, with the emergence of economic organizations of collective ownership, enterprises on shares, and then joint-stock companies, accounting began to acquire public importance. It took unity in its methodology, the need for its legislative regulation, the introduction of unified reporting and rules for its preparation. In addition, the state, which is constantly strengthening its power, immediately appreciated the role of accounting in taxation, in settlements with the budget and began to actively intervene in the establishment of its rules and control over their observance, primarily for fiscal reasons. Accounting, while retaining the fundamental possibilities of participating in the management of an enterprise, has gradually turned into accounting for third-party consumers of its data: shareholders, shareholders, the state and third parties (credit, investment organizations, suppliers, buyers, etc.).

What happened in the middle of the XX century. The separation of management accounting from the accounting system is associated with the development of technology and production technology, science and management practice, the emergence of new market instruments, and increased competition. The number of options for solving economic problems and situations has increased, they have become more complicated. The cost of an error also increased due to an incorrectly made decision on enterprise management. By this time, the theoretical foundations and principles, the management accounting methodology in the form of standard-cost and direct-cost systems were determined, the theory of managerial decision-making and the science that studies human behavior were developed.

2.2 The relationship of production, financial and management accounting

In the modern sense, management accounting is a system that ensures the receipt and delivery of information necessary for the functioning of the management system at the enterprise. In part, these functions are performed by production and accounting. The information generated in the systems of accounting, production and management accounting is designed to reduce the degree of uncertainty inherent in market conditions of management. In general terms, the ratio of accounting, production and management accounting can be presented in the form of the following diagram (see Appendix B).

From the above diagram it can be seen that management accounting consists, as it were, of two components: production accounting,

The practice of implementing management accounting has shown that in any form of its organization, it is necessary to separate it into an independent section or type of accounting work, measuring the costs and results of the main activities of the enterprise. In industry, these are the costs of manufacturing or extracting products, performing work, providing services and their implementation and, accordingly, the volume and cost of production and sales, in construction - the costs of construction, installation of equipment and commissioning of facilities, their estimated contractual cost, in trade - distribution costs, volume of goods turnover and gross profit.

It is the ratio of costs and results of activities that testifies to the effectiveness of management, serves as the basis for making management decisions, for assessing the feasibility of their implementation.

2.3 Differences between financial and management accounting

The most significant differences between financial and management accounting are as follows.

1. Financial accounting is intended for the preparation of financial statements of the established form and content, mainly focused on external users: shareholders and other property owners, government authorities and management, creditors and investors. The purpose of this accounting and related reporting is to inform the owners of the enterprise, the state and third parties about the availability of property and obligations of the organization, its financial condition and performance, the calculation of taxable indicators and tax payments, management of accounts receivable and payable, settlements with customers and personnel. The purpose of management accounting is to provide managers of the organization with the information necessary to control the profitability of production and economic activities, to solve internal problems of managing a company, to search and justify management decisions.

2. Financial accounting is obligatory for the enterprise, management accounting is not. The obligation to keep financial records using accounting accounts is determined by the federal law of the Russian Federation, which applies to all organizations located in the territory of the Russian Federation. The question of whether to keep management accounting at the enterprise or not is decided by the organization itself. The collection and processing of information for management is considered appropriate if its value for management is higher than the cost of obtaining the relevant data.

3. Financial accounting covers all business transactions, all activities of the enterprise, its property, obligations and settlements. But this accounting for fact, forecast, expected values \u200b\u200bdoes not include accounting. Management accounting is mainly the calculation of costs and benefits; identification of deviations from the optimal use of household funds. Both types of accounting for management include calculated, expected, forecast, planned values.

4. Financial accounting must be carried out in accordance with the regulatory documents of the Government of the Russian Federation and the bodies that are granted the right to regulate accounting. For violation of the financial accounting methodology, liability is stipulated by law. The methodology and organization of management accounting are not regulated by state bodies and legislation. Management accounting is conducted according to the rules established by the organization itself, taking into account the specifics of its activities, the peculiarities of solving certain managerial tasks. There are no restrictions on the choice of management accounting systems. Its methodological basis is the theory of decision making.

5. The users of financial accounting and reporting information are mainly owners, creditors, investors, tax authorities, extra-budgetary funds, public authorities, i.e. external consumers. Personally, their composition is unknown to the company, and everyone is presented with the same data contained in the financial statements. Management accounting information is intended for company leaders (managers) of different levels of authority and responsibility. Naturally, each of them needs an individual list of management credentials corresponding to their rights and responsibilities.

6. Financial accounting is maintained by double entry in interconnected accounting accounts. Management accounting may or may not adhere to this principle in whole or in part. Measurement and evaluation of income, costs, assets without using a system of special accounts of management accounting is carried out by statistical methods of accumulation, sampling, comparison, etc. If management accounting uses a system of accounts, they must differ from financial accounts in form and substance, but be interrelated with them in a methodological respect.

7. Financial accounting is kept as a whole for the enterprise, considers it as a single economic complex. The costs and results of activities, settlements with suppliers and buyers, taxes and other mandatory payments, reserves and earmarked receipts are taken into account in the sums generalized for the organization, without breakdown by type of activity, structural divisions, etc. Management accounting is maintained by market sectors, places of cost formation, centers of responsibility, reasons and perpetrators of deviations, and only for top management its data are summarized as a whole for the enterprise.

8. Not only the content is different, but also the frequency and timing of reporting. In financial accounting, statements can be drawn up based on the total for a month, quarter, year, the time of its submission - after a few days, weeks, months. In management accounting, the frequency of submission of the relevant data is daily, weekly, monthly, part of the reporting data is formed as the need for them or by a certain predetermined date. A common requirement for accounting data for management is their efficiency, the formation of information on the principle "the faster the better."

9. Financial accounting information characterizes the result of fait accompli and business transactions for the past period of time, reflects them according to the principle "as it was". Management accounting data are guided by the decision "how it should be" and control over the implementation of the decision. Accounting for actual values \u200b\u200bfor management accounting is also important, but mainly as a basis for making decisions and analyzing their effectiveness. Since management accounting does not negate financial accounting, it uses its information about actual costs and performance, changes in the value of assets and sources of their formation, debt obligations, etc.

10. Accuracy of financial and managerial accounting and calculation of their indicators may be different. Financial accounting data must be reasonably accurate, otherwise external users will be suspicious of the content of the financial statements. In management accounting, approximate estimates, probabilistic calculations, and indicative indicators are acceptable. Here, accuracy may not play a decisive role, and the speed of obtaining information for control, its multivariance, that is, acquires paramount importance. compliance with management objectives.

11. Financial and management accounting can distinguish between the composition of the indicators used, their units of measurement. The basis of accounting is value, monetary measurement, financial statements are drawn up only in value terms. It is impossible to take into account on the accounts of accounting that which cannot be estimated in rubles or another currency. In management accounting, both monetary and natural units of measurement are widely used. Estimation of labor costs and labor intensity of production in working hours (hours, man-hours, standard hours) is very common. In some cases, they are more objective in assessing the effectiveness of costs and benefits than cost indicators. In management accounting, relative indicators are widely used, which are relatively rarely used in accounting, and unknown to it cost indicators of value added, marginal costs and profits, marginal costs, etc.

12. The degree of openness of information in accounting and management accounting is different. The financial statements of most enterprises (with the exception of regime enterprises) are open for review. The Federal Law “On Accounting” obliges open joint-stock companies and organizations created at the expense of private, public and state funds and contributions to publish annual financial statements no later than June 1 of the year following the reporting year. There is a principle of publicity of financial statements, according to which its data must be published in newspapers, magazines and other accessible publications, presented in special booklets, brochures and transferred to the territorial bodies of state statistics at the place of registration of the organization for presentation to interested users.

The content of the concept of "management accounting" in different countries is different. It was first used by authors writing in English. In Germany, until recently, this term was not used at all, preferring to call the corresponding training course and practical matter "Calculation (accounting) of costs and benefits." Accordingly, the area of \u200b\u200bplanning, accounting, control and analysis of costs is limited mainly to sales revenue and costs of the current year. In English-speaking countries (USA, England, Canada), management accounting is considered more broadly. Its scope includes financial and industrial investments, the results of their use. In France, they prefer to deal with the concept of "margin accounting" and limit it to finding and justifying management decisions for the future using indicators of marginal profit. In Russia, apparently, it is necessary to try to find a middle ground, taking into account the traditions and experience of the formation and development of accounting and management accounting in our country.

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

- reliability;

- completeness;

- relevance;

- integrity;

- comprehensibility;

- timeliness;

- regularity.

Similar requirements apply to financial accounting information. However, their content and significance may vary.

For financial accounting, reports are considered reliable if they are formed on the basis of the rules established by regulatory enactments on accounting. In management accounting, more important is the objectivity of data, their correspondence to reality. Credibility concept in accounting for management closer to the definition used in auditing, where credibility is understood as the ability for a competent user to draw correct conclusions from accounting and reporting data.

Completeness management accounting means the sufficiency of information for the management of the enterprise and its departments, the ability to ensure this sufficiency. The most complete are complex 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.

The main requirement for information generated in the management accounting system is its relevance, those. materiality, acceptability for the solutions being developed. All other requirements are subordinate. Information that is irrelevant, insignificant for a given decision, even if it is absolutely reliable, cannot help in making the right decision, while 90% reliable data can be the basis for correct conclusions.

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.

One of the requirements of generally accepted standards and provisions of management accounting is its integrity and clarity for users. This means that management accounting should be systematic even when it is maintained without the use of primary documentation, accounts and double entry. Consistency in this case, it 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 the indicators of accounting and reporting.

The comprehensibility of the data and results of management accounting is important because its consumers are not only accountants and economists, but mainly the administration of the enterprise and line management workers (engineers, technicians, foremen), i.e. persons without special economic training. The understanding of management accounting information for them 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. The orientation of management accounting to deviations from norms and standards also contributes to clarity.

Timeliness of management accounting means its ability to provide managers with the necessary information by the time of decision-making. In the conditions of automated systems for processing economic information, this is not a serious problem, but when using powerful modern computers, there is a danger of data overload with a simultaneous lack of data by the time a managerial decision is made. Often, managers do not know what to do with this information.

Conclusion

The conducted theoretical study of the comparative characteristics of production, management and financial accounting allows us to draw the following conclusions:

Modern management accounting includes the functions of forecasting, rationing, planning, operational accounting and control. Forecasting the main indicators of the enterprise's activity specifies its goals for a given period of time and contributes to their achievement. It is based on the spatial-temporal study of the state of the market, its structure and factors affecting the needs for specific products and services, the study of trends in their development, and analysis of the financial capabilities of buyers. The basis is the sales forecast as a necessary element of production planning and sales of goods.

Financial accounting is intended to provide reporting information mainly to external users: shareholders and other owners, creditors, investors of the enterprise, its personnel, suppliers and buyers, tax and statistical bodies of the state, public and trade union organizations.

Management Accounting - it is a field of knowledge and a field of activity associated with the formation and use of economic information for management within an economic entity (enterprise, firm, bank, etc.). Its purpose is to help executives (managers) make economically sound decisions.

Management accounting basically uses the same principles as financial accounting, and is a logical consequence of the development of accounting, its evolution.

Management accounting consists of two components: production accounting, intended for internal (intra-plant, as they said earlier) management of production and sales of products, and that part of financial accounting, which serves to manage financial activities directly in the organization. This does not mean that when organizing management accounting, creating its system, it is necessary to combine both of these functions. They can also exist separately: production accounting keeps records of costs and results of production and sales, and financial - in addition to accounting, drawing up a balance sheet and other forms of reporting, participates in the management of financial transactions and cash flows and related activities. In small organizations, the functions of management and financial accounting should be combined into a single service.

Management accounting information is closed to third-party individuals and legal entities, the tax service and other government agencies. Even within the enterprise, it is a trade secret. The degree of confidentiality of information for management is different and largely depends on the level of management to which it is presented: at the level of junior managers (foremen, chiefs of services, etc.), it is essentially open, at the level of members of the board of directors, the manager of the company, his deputies and heads of departments are practically closed.

Recently, the tax legislation of the Russian Federation introduced a new type of accounting - tax. Its difference from management accounting is obvious from the comparison of names: tax accounting is designed to calculate taxes and control the timeliness of their payment, management accounting serves the purposes of on-farm management, which are very far from taxation. At the same time, many decisions on enterprise management, especially at a higher level, must be made taking into account tax consequences, and in this regard, management and tax accounting have a certain connection and interdependence.

Ultimately, management accounting, in contrast to accounting, does not imply actual accounting for the value of property, costs and income, the state of settlements and obligations and conditions that affect the production, economic and financial activities of the organization. Its purpose is to provide information for making decisions on managing the economy of an enterprise and to check the effectiveness of implementation of the decisions made.

List of sources used

1. Decree of the President of the Russian Federation of June 3, 1993 N 842 "On some measures to curb inflation" // Reference and legal system "Garant" / NPP "Garant - service". - Last update 01.09.07

2. Andreev, B.F. Systemic course of economic theory. Microeconomics. Macroeconomics: Textbook. allowance / B.F. Andreev. - SPb .: Lenizdat, 2003 .-- 574 p. ISBN 5-289-01904-9.

3. Bartenev, S.A. History of economic doctrines in questions and answers / S.А. Bartenev. - M .: Jurist, 2003 .-- 188 p. - ISBN 5-7975-0096-5.

4. Bogatko, A.N. Fundamentals of economic analysis of a business entity / A.N. Richly. - M .: Finance and statistics, 2003 .-- 206 p. ISBN 5-279-02070-2.

5. Borisov, E.F. Economic theory: Textbook. / E.F. Borisov. - M .: Jurist, 2003 .-- 567 p. ISBN 5-7975-0152-X.

6. Borisov, E.F. Economic theory: questions - answers. Key concepts. Course logic: Textbook. allowance. / E.F. Borisov; Moscow state jurid. acad. - M .: KONTRAKT: INFRA-M, 2004 .-- 192 p. - (Ser. "Higher education"). ISBN 5-16-000215-4.

7. Gataulin, A.M. Economic theory: Explanatory terminol. words .: Textbook. manual / A.M. Gataulin. - M .: Kolos, 2003 .-- 247 p. ISBN 5-10-003339-8.

8. Ivashkovsky, S.N. Economics: micro and macroanalysis: Textbook. allowance / S.N. Ivashkovsky; Acad. bunk bed households under the Government of the Russian Federation. - M .: Delo, 2003 .-- 359 p. - (B-ka modern manager) ISBN 5-7749-0133-5.

9. Kulikov, L.M. Fundamentals of Economic Knowledge: Textbook. allowance / L.M. Kulikov. - M .: Finance and statistics, 2003 .-- 268 p. ISBN 5-279-01891-0.

10. Nikolaeva, I.P. Economic theory: Textbook. / I.P. Nikolaev. - M .: KnoRus, 2003 .-- 224 p. ISBN 5-85971-006-2.

Appendix A

The relationship of financial and management accounting with economic analysis

Appendix B

The relationship of accounting, production and management accounting

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Discipline: Accounting, statistics
The type of work: abstract
Topic: The essence and purpose of management accounting

________________________________________________________________________________________

COURSE WORK

BY DISCIPLINE

MANAGEMENT ACCOUNTING

ESSENCE AND PURPOSE

MANAGEMENT ACCOUNTING

1.1. Basic concepts of management accounting. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 3

1.2. Relationship of management accounting with financial accounting. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 4

1.3. Appointment of management accounting. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... five

1.4. Organizational aspects of management accounting. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... five

2. Practical part:

2.1. Calculation of deviations in production. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 12

2.2. Calculation of cost variances. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 13

Literature. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... fifteen

1. THEORETICAL PART

1.1. Basic concepts of management accounting.

Management accounting is an accounting subsystem that, within the framework of one organization, provides its management apparatus with information used for planning, actually managing and monitoring the organization's activities. This process includes identifying, measuring, collecting, analyzing, preparing, interpreting, transmitting and receiving information necessary for the management apparatus to perform its functions.

Information is facts, data, observation results, etc., that is, everything that somehow expands our knowledge. The number 1000, taken by itself, is not information, but the statement that the organization employs 1000 people can already be considered as such.

In the process of daily activities in the organization, a significant amount of operational information appears. This is the source material for the summary information reflected in financial and management accounting. For a manager, any information is important, regardless of whether it is an object of accounting or not, can be quantified or not. The rumor that a large customer is not satisfied with the quality of the organization's products and is ready to look for another supplier - information that is not an object of accounting and control cannot be quantified, but it is definitely important information. It is necessary to identify the main differences between the information required for management accounting from other types of information, in particular from the information used in financial accounting.

In Western practice, external consumers of information about an organization use three main financial documents to make decisions: balance sheet, profit and loss statement, and asset movement statement. These documents, intended for shareholders, creditors, and other stakeholders outside the organization, are also useful for the managers of the organization. Using this information for management purposes is absolutely essential. However, the administrative staff also needs much more detailed information than that contained in the listed financial documents.

We are talking about operational information, which provides the initial data for the formation of management accounting information. Most of the operational information during the normal course of business is not of direct interest to the leaders of the organization. They do not care how many parts the turner produced in one working day, and what specific amount of money was transferred to the organization's account yesterday. These facts should be documented, but these documents will be operated rather in the primary management levels than at the level of the organization's managers. Managers are not interested in "snatched" details, but in generalized information obtained from primary accounting documents.

1.2. Relationship of management accounting with financial accounting.

In foreign countries, a distinction is usually made between financial and management accounting.

Financial accounting covers information that is not only used for internal management, but also communicated to counterparties (third-party users).

Management accounting encompasses all types of accounting information required for management within the organization itself. Part of the general area of \u200b\u200bmanagement accounting is production accounting, which is usually understood as accounting for production costs and the analysis of data on savings or cost overruns compared to data for previous periods, forecasts and standards. The main goal of management accounting is to provide information to managers responsible for achieving specific performance indicators. The process for preparing such information may differ materially from that used in financial accounting. Let us explain this in Fig. 1, which shows the relationship between the named types of accounting.

Figure: ... Management accounting versus financial accounting:

A - production accounting;

B - financial accounting (for internal management);

B - financial accounting in the narrow sense (for external users);

D– tax calculations based on financial accounting (for tax authorities).

1.3. Appointment of management accounting.

The study of the features of management accounting allows us to conclude that it serves to:

providing the necessary information to the administration for managing production and making decisions for the future;
calculating the actual cost of products (works and services) and deviations from established norms, standards, estimates;
determination of financial results for sold products or their groups, new technological solutions, responsibility centers and other positions.

In domestic practice, the concept of management accounting is not yet used. Many of its elements are included in our accounting (accounting for production costs and calculating the cost of production); operational accounting (operational reporting); economic analysis (analysis of the cost of production, substantiation of decisions made, assessment of the implementation of planned targets, etc.). At the same time, domestic accounting practice is not yet linked to marketing, deviations of actual costs from forecast ones are not determined, such a category as the future ruble is not used, etc.

1.4. Organizational aspects of management accounting.

Organization of management (including production) accounting is an internal matter. The administration of the organization itself decides how to classify costs, how much to detail the cost centers and how to link them to the centers of responsibility, how to keep records of actual or planned (normative), full or partial (variable, direct, limited) costs.

The variety of organizations, determined by the forms of ownership, economic, legal, technical, technological and other factors, as well as the competence of managers and their need for one or another management information determine the variety of specific forms of organization of management accounting.

Let us present the main factors influencing the choice of the management accounting subsystem, and the main, from our point of view, the signs of the classification of these subsystems, as well as their structure in Fig. 2.

Figure: ... The main factors for choosing a subsystem of management accounting and

signs of the classification of these subsystems.

In the practice of Western accounting, two variants of the relationship between management (sometimes called production, or analytical) and financial accounting are used.

This connection is carried out using reconciliation accounts, which are the expense and income accounts of financial accounting. In the presence of direct correspondence of accounts of management (production) accounting with control accounts, they speak of an integrated (monistic, single-circle) accounting subsystem, that is, we are talking about the first communication option.

If the management accounting subsystem is autonomous (closed), then paired control accounts of the same name are used, known as reflected, mirror accounts, or screen accounts. This is the second option.

The most important characteristic of Western management accounting systems is the efficiency of cost accounting. From this point of view, cost accounting is subdivided into the accounting of actual (past) costs and cost accounting according to the "standard cost" system. The "standard cost" system includes the development of standards for labor costs, materials, overhead costs, drawing up a standard (normative) calculation and accounting for actual costs, highlighting deviations from standards (norms).

The subsystems of management accounting used in Western industrial enterprises are characterized by many features that can be used as the basis for their classification. One of the signs is the completeness of including costs in the production cost. Here we can talk about two subsystems (methods) of management accounting: the subsystem of full inclusion of costs in the cost of products (works, services), that is, the traditional accounting of the full cost, and the subsystem of incomplete, limited inclusion of costs in the cost by some criterion, for example, by the sign of the dependence of costs on the volume of production, that is, "direct costing".

Since such a feature of the organization of management accounting as full cost accounting, or "direct costing", is essential and affects the organization of almost all elements of the management accounting subsystem, they are diverse and determined by many factors.

Due to their diversity, Western management accounting systems are difficult to compare with domestic accounting. We will do this in the context of the most significant features.

The Western accounting system in an organization, as already mentioned, is usually divided into closely interrelated financial (external) and management (internal) subsystems. Until now, there has been no such division of accounting in domestic accounting, but this will become necessary in the future. Domestic accounting is an integrated system organized in a single system of accounts. In a sense, we can talk about an analogy between the domestic accounting system and the option of integrating financial and industrial accounting in the West.

The main organizational issue in management accounting is the need to detail the Chart of Accounts. More detail is not required to solve financial accounting problems. For example, for financial accounting purposes only, all sales can be credited to a single account "Sales revenue" and to the debit of accounts "Cashier", "Bank" or "Accounts receivable". However, this will make it difficult to analyze sales by product type, profit center, shipping point or individual customer.

The types of analysis that management seeks to carry out more or less regularly determine the granularity of the chart of accounts. In fact, it depends on the “detailed extensions” that are required for each cost, income, or asset.

Example. On December 30, 1999, one of the subdivisions of Sizyi Smoke JSC consumed raw materials in the amount of 100,000 rubles. for the manufacture of a specific product. One of the following questions may be asked about the event that has occurred:

What specific materials were used?
What type of product did the product belong to?
In which department were the materials used?

The first question relates to a more detailed description of the cost elements, the second to the distribution of costs by product, and the third to the definition of responsibility centers. The answer to each of the questions requires detailing the data on the costs of raw materials and materials.

The formal answer to all three questions presupposes that the chart of accounts should contain, as a detailed account, "Materials X used in product Y produced in department Z". If Siziy Smoke JSC uses 1000 types of raw materials and materials for 100 goods produced in 30 centers of responsibility, then this may require 3 million (1000 100 30) detailed invoices belonging to one general category - material, as well as to the category "unfinished production".

If the JSC wants to have data on types of products and centers of responsibility for any date, then the structure of accounts must be detailed for all of the above items.

Many organizations do need detailed information on all three dimensions, so this example does not exaggerate the scale of the actual use of itemized bricks in large organizations.

The accounting database needs to be expanded if the organization needs to separate the fixed and variable cost elements. It should be noted that semi-variable costs can also be divided into fixed and variable costs. This expansion may become necessary if the organization is constantly in need of short-term opportunity cost analysis or in-house revenue reporting that separates fixed and variable costs. In the future, the chart of accounts can be expanded if the organization wants to identify in its structure of accounts the costs of their control in the center of responsibility where they arise (or to which they are assigned).

There is no “right” level of detail in the account structure. It is up to management to conduct a cost-benefit analysis. Organizations suffer from inadequate rather than over-granularity of the accounting database. In many cases, organizations did not revise their charts of accounts after the computerization of the databases. Despite the generally recognized need for more detail today, the total cost of reworking computer programs for more detailed accounting may not be appropriate. There are examples of unreasonably expensive computer systems, whose creators were guided by the most detailed provision of information for all kinds of analysis instead of simply choosing a data structure that is used more or less regularly.

Detailed accounting information can play a decisive role in total cost analysis or alternative cost analysis. In the process of management control, it is equally important to know the behavior of costs. Every existing or proposed management control system must be tested against its objectives. To do this, you need to answer the questions:

How will managers' actions be stimulated to achieve the interests of the organization?
Are these actions in the main interests of the organization?

Organizations are sometimes unable to answer these questions, in particular when formulating transfer pricing policies or measuring rates of return on investment (NPI) for different investment centers. This underestimation often leads to undesirable consequences.

Example. When measuring the NPI of an investment center, most organizations include fixed assets in total investments at their net book value, that is, at their initial cost less accumulated depreciation. This practice can lead to an “automatic” increase in NPI every year, because the investment base (denominator in the NPI fraction) is getting smaller due to the annual increase in accumulated depreciation.

Some critics disapprove of this scheme for measuring NPI because investment center managers do not have a high level of motivation to develop production modernization projects, due to the fact that such a scheme usually causes a decrease in NPI if an important new project is accepted. Investment center managers cannot be sure that their managers will subsequently understand the essence of the main reasons for the apparent deterioration of the NPI performance of their investment centers.

In fact, an increase in NPI can also mean a physical reduction in fixed assets installed in the division, which ultimately leads to a reduction in the overall production capacity of the division.

In any case, senior management is responsible for deciding how NPI should be measured. If undesirable consequences arise for a particular method, the blame should not be placed on the investment manager, but on the top management of the organization, who is responsible for choosing the method for evaluating the NIP.

Another common mistake in managerial control is the opinion of managers that unfavorable deviations mean poor management performance. Managerial ambitions of managers can be severely damaged if managers are given a categorical order from above to correct unfavorable deviations without being able to discuss the reasons for these deviations with their superiors. Managers in many organizations also suffer from the fact that their leaders pay too much attention to unfavorable deviations and neglect favorable deviations.

These problems are not flaws in the design of the control system as such, but rather are related to the management style. Again, in the process of management control, behavioral reasoning is just as important as accounting reasoning. Thus, building a system of management control that is solid from a conceptual point of view will not be effective if managers feel that their leaders evaluate their performance arbitrarily and unfairly, based only on accounting information by responsibility centers.

2. PRACTICAL PART

2.1. Calculation of deviations in production.

Firm A manufactures products C. During the reporting month, the activities of the firm are characterized by the following indicators (Table 1).

Firm performance indicators

Unit price (euro)

Number of products released (pcs.)

Total cost (EUR)

Normative value

Actual value

Using the data in the table, you need to calculate the usage variance, price variance, and total variance.

Total deviation \u003d (actual quantity of products manufactured x actual price) - (standard quantity of products manufactured x standard price) \u003d (620 x 10) - (600 x 8) \u003d 1400 euros1.

The total deviation can be decomposed into two parts:

price deviation;
deviation by ... Pick up file

The main principle of management accounting is its focus on meeting the information needs of management, solving the problems of in-house management of various levels of rights and responsibilities. At the same time, information should be ahead of decisions. The philosophy of management accounting is based on the fact that the costs and results of activities should be determined with a greater or lesser degree of reliability before their implementation and receipt. The optimal one is selected from their various options, it is he who is included in the plan and budget, the implementation of which is controlled by methods of accounting for actual values. Based on the identified deviations from the plan, standards, estimated budget allocations, measures are taken to ensure that costs and results are provided at the level of specified values, or the plan itself is adjusted.

Manufacturing management is a complex and complex process. The accounting system that meets the management requirements is also complex and consists of many procedures. In addition, the composition of the elements of the management accounting system may vary depending on the management objectives.

The principles of management accounting include:

business continuity;

the use of uniform for planning and accounting (planning and accounting) units of measurement, the assessment of the results of the activities of the divisions of the enterprise;

continuity and multiple use of primary and intermediate information for management purposes;

formation of internal reporting indicators as the basis for communication links between management levels;

application of the budget (estimate) method of managing costs, finances, commercial activities;

completeness and analyticity, providing comprehensive information about accounting objects;

the frequency reflecting the production and commercial cycles of the enterprise, established by the accounting policy of the enterprise.

The combination of these methods and principles ensures the effectiveness of the management accounting system, but does not unify the accounting process.

Management accounting is an integral part, a tool of the enterprise management system. It is designed to provide the formation of information necessary for: monitoring the efficiency of the current activities of the organization as a whole and in the context of its individual divisions, types of activities, market sectors; planning future strategies and tactics for carrying out commercial activities in general and individual business operations, optimizing the use of material, labor and financial resources of the organization; measuring and evaluating the efficiency of management in general and in the context of organizational units, identifying the degree of profitability of certain types of products, works, services, sectors and market segments; adjusting control actions on the course of production and sales of products, goods and services, reducing subjectivity in the decision-making process at all levels of management.

Proceeding from this, the main tasks of organizing management accounting are to focus on achieving a predetermined goal of entrepreneurship, the need to provide alternative options for solving the task, participation in the choice of the optimal option and in the calculation of the normative parameters for its implementation, focus on identifying deviations from the specified performance parameters, interpretation of the identified deviations and their analysis. In addition, it is necessary to observe the general principles of generating information for management: the principle of ahead of time for making a management decision and the principle of responsibility for its consequences. A correct assessment of upcoming expenses and income in business is much more important than a statement of missed opportunities. At the same time, if there is no responsibility for the results of management at all levels of management, it makes no sense to keep management accounting.