Lecture 1. The role and place of management analysis in the enterprise management system

Purpose, basic concepts, tasks of management analysis

Management analysis provides an assessment of internal and external factors of the current situation, general trends in the development of economic processes, possible reserves for increasing production efficiency; provides for an analysis of the degree of tension and implementation of the plan for all types of indicators, a study of the progress of the operational implementation of the plan, the negative reasons affecting it, and ways to eliminate them.

Analysis- is a tool for cognition of objects and phenomena of the internal and environmental environment, based on the analysis of the whole into its component parts and the study of their interrelation and interdependence.

Economic analysis is a system of special knowledge associated with the study of economic processes and phenomena in their interrelation, developing under the influence of objective and subjective factors.

The financial analysis- this is a part of economic analysis, representing a system of special knowledge associated with the study of the financial position of an organization and its financial results, which are formed under the influence of objective and subjective factors, based on financial reporting data.

Management analysis- this is a part of economic analysis, which is a system of special knowledge associated with the study of the resources of an enterprise in connection with its capabilities, developing under the influence of objective and subjective factors, in order to increase the efficiency of financial results and develop tactical and strategic management.

The purpose of management analysis is to obtain key (the most informative) parameters that give an objective and most accurate picture of the economic, business condition and financial results of the enterprise.

The system of goals of management analysis is:

Assessing the company’s place in a given business segment; determination of the organizational and technical capabilities of the enterprise; assessment of product competitiveness, market capacity;

Analysis of resource opportunities for increasing production and sales through better use of means of labor, objects of labor, labor and financial resources;

Analysis of possible results of production and sales of products and ways to speed up production and sales processes;

Making decisions on the range and quality of products, launching new product samples into production;

Development of a strategy for managing production costs by deviations, cost centers, and responsibilities;

Choosing a pricing policy;

Analysis of the relationship between sales volume, costs and profits in order to manage production break-even.

The goal of the analysis is achieved as a result of solving a certain interrelated set of analytical problems.

The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis.

The object of analysis is what the analysis is aimed at. Depending on the tasks set, the objects of management analysis can be: the activity of the enterprise as a whole, or production, or expenses, or financial results, or analysis of a market segment, or a comprehensive analysis of the efficiency of resource use, etc.

Subject analysis - a person engaged in analytical work and preparing analytical reports (notes) for management, i.e. analyst.

Management analysis solves the following problems:

o establishes the basic patterns of enterprise development;

o identifies internal and external factors, stable or random nature of deviations and is a tool for informed planning;

If accounting supplies information, then management analysis must turn it into information suitable for decision-making. Logical processing, causal study, generalization of facts, their systematization, conclusions, proposals, search for reserves - all these are the tasks of management analysis, which is designed to ensure the validity of the management decision and increase its efficiency.

Management analysis did not arise out of nowhere. It is methodologically linked to a number of other disciplines that provide significant contributions to the theory and methodology of management analysis.

Marketing by definition deals with the interaction between enterprise and the free market. Over the past decade, more and more attention has been paid to strategic decisions. Tools and concepts such as brand equity, customer satisfaction, positioning, product life cycle analysis, global brand management, category analysis and management, and customer needs analysis provide the potential to improve the analysis and management decision-making process.

The most important contributions made finance And Accounting in management analysis is an analysis of the cost of created products, accounting for expenses and income, assessment of financial flows, concepts that should be taken into account when assessing the impact of a strategy on the value of an enterprise. Another contribution is the rich body of research on diversification and mergers and acquisitions. The contribution of financial disciplines to management analysis also lies in the development of the concept of risks and a risk management system.

Statistics - this is both a source of information and, to a large extent, a methodological apparatus for management analysis.

Strategic management uses this area economic theory, as an industry organization that applies concepts and concepts such as industry structure, market entry barriers, and strategic groups. In addition, the concept of transaction costs has been developed and used to analyze vertical integration. Finally, economic theorists have contributed to the concept of the experience curve, which plays an important role in strategy development.

Experts in the field organization theories made a significant contribution to solving the problem of compliance with the organizational structure of the enterprise, its culture and systems. They showed that inconsistency in this area can hinder the prosperity of the enterprise, and also developed many theories and guidelines for implementing the developed strategy.

Discipline strategy Development not only is it increasingly intersecting with other disciplines, but it is also becoming more mature in its own right. Its maturity is indicated, in particular, by the large number of quantitative studies carried out, as well as the high degree of development of tools and methods. In addition, the number one magazine in the field of strategy - Strategic Management Journal - contributed to the “explosion” of academic research in the field of theory and practice of strategy, which has been observed over the past 20 years.

And, of course, management analysis is closely related to other areas of economic analysis, which include the theory of economic analysis, financial analysis and investment analysis.

Rice. 1.1. Control Process Functions

The planning function includes long-term, current and operational planning. At the same time, all types of work are carried out in interconnected stages: assessment of the external situation; determining demand for products; creation of a system of connections and formation of information flows for planning; determination of main goals and objectives; development of general plans for a long period, current plans. Operational planning complements current planning and is associated with the development of plans for short periods of time.

The organization function ensures the formation of spatiotemporal deviations and proportions in the use of material elements of production and labor.

The control function follows accounting and includes regular and periodic control, which is manifested in the identification and selection of data reflecting the implementation of planned targets, standards and deviations from them.

Regulation is a function of the control system, which ensures the direction of the activity of the control object in accordance with the plan. Its role is expressed in correction, thanks to which random deviations of the system are eliminated. Depending on the objects, the regulation of inventories, production costs, and schedules is distinguished.

The accounting function is designed to reflect the results of the production and economic activities of the enterprise, provide data on the state of the control object for a certain period and includes accounting, statistical, and operational accounting. The responsibilities of an accountant include: organizing and maintaining accounting, planning and control, internal and external reporting, assessment and consulting, working with taxes, accounting and control of assets, economic assessment and in-depth analysis. An accountant must know the needs of managers at different levels, improve the technique of accounting work, in order to fully contribute to solving management problems.

Management analysis as a function of the management system includes an assessment of internal and external factors of the current situation, general trends in the development of economic processes, possible reserves for increasing production efficiency; provides for assessing the degree of tension and implementation of the plan for all types of indicators, studying the progress of the operational implementation of the plan, disturbing causes, and ways to eliminate them.

Management analysis, based on accounting data, forms the basis for sound planning, precedes planning, completes the implementation of the plan and proceeds during its operational implementation.

Analysis is closely related to accounting and control. Accounting carries information about the state of the control object. Control is based on comparison of accounting information with regulatory information and involves audit and administrative sanctions. If control establishes only the fact of the deviation itself, then the task of analysis, using the data accumulated by accounting and control, is to study:

o patterns of deviations, their stability;

o factors that caused their specific causes;

o the size of possible reserves when eliminating disturbing influences;

o possible ways to realize reserves;

o their effectiveness;

o development prospects.

The tasks of management analysis are much broader than control functions.

Management analysis is an important element of the management system. It is designed to provide the management apparatus of an organization or enterprise with the information necessary to manage and control the activities of the organization and to assist the management apparatus in performing its functions.

Analysis represents the content side of the process of managing an organization. It serves as a tool for preparing a management decision.

The optimality of management decisions made depends on the development of policies in different areas of the enterprise’s activities:

o quality of management analysis;

o development of accounting and tax policies;

o developing directions of credit policy;

o quality of management of working capital, accounts payable and receivable;

o cost analysis and management, including the choice of depreciation policy.

Developing a management decision (see Fig. 1.2) is one of the main tasks of the enterprise management process. Management analysis in the management process acts as

Rice. 1.2. Sequence of making a management decision

element of feedback between the control and controlled systems. The control body transmits command information to the control object, which, changing its state, through feedback informs the control body about the results of the command and about its own new state.

Feedback shows how certain management decisions affected the production and economic process, which makes it possible to search for alternative solutions and change the direction and methods of work. Feedback includes a set of techniques and relationships between people.

The feedback hierarchy in management analysis is built in such a way that operational management decisions are made at lower levels based on the maximum amount of data provided (Fig. 1.3).

Speaking about the role of management analysis in managing an organization, the following points should be highlighted. So, analysis:

o allows you to establish the basic patterns of enterprise development, identify internal and external factors, the stable or random nature of deviations and is a tool for sound planning;

o promotes better use of resources, identifying untapped opportunities, indicating directions for searching for reserves and ways to implement them;

Rice. 1.3. Feedback Hierarchy

o contributes to the education of the organization’s staff in the spirit of thrift and economy;

o influences the improvement of the enterprise’s self-sufficiency mechanism, as well as the management system itself, revealing its shortcomings, indicating ways for better organization of management.

Based on the time aspect, in management analysis one can distinguish preliminary, current, subsequent and prospective types (see Fig. 1.4). Each of them is necessary for making management decisions by certain managers at a specific stage of the enterprise’s activities (see Fig. 1.5).

Management analysis reduces the uncertainty of the initial situation and the risk associated with choosing the right solution.

There are four main phases in the decision-making process.

1. Study of the initial position, collection and transmission of information about the actual state of the control object. This is an important aspect of the analytical work of governing bodies, allowing us to determine the current and future conditions in which the management object is located, and compare them with overall goals in order to formulate the main problems of decisions.

2. Information processing, preparation and decision making. Comprehensive processing of information, comparison, identification of causes is carried out, and various

Rice. 1.4. Types of management analysis based on the time aspect

possible alternative options, criteria are determined. Projects are being developed, their feasibility studies are being carried out, and general goals and objectives are being determined while taking into account available resources. The task of economic analysis at this stage is to select the best option.

3. Organization and implementation of decisions, issuing commands to the control object to eliminate identified deviations.

4. Calculation and control of the implementation of decisions. The actual effectiveness of solutions is analyzed. One of the most important types of decisions is a plan, and economic analysis is a tool for justifying plans, selecting options, assessing the degree of their implementation and the factors that influenced the deviation from the plan.

It is necessary to distinguish between levels of decision making and, accordingly, the distribution of analytical information across these levels (see Fig. 1.6). At all levels of the system, decisions are made that are consistent with available information and production needs.

The enlarged model of the analytical support system (CAO) consists of blocks corresponding to management objects and processes of production and economic activity.

Rice. 1.5. Decision making in the control system

Rice. 1.6. Levels of Decision Making

Production and economic activities represents the overlay of processes on resources. The input is resources, material and material flows, which, passing through processes, including the production process, come out in the form of results (finished product, profit, financial transactions), completing the old cycle of processes and starting a new one.

In both control and managed systems, blocks of information are allocated in accordance with control objects.

Under control objects resources (means of labor, objects of labor, labor and wages, financial resources) and results (product of labor, costs, profits, financial transactions) are understood.

Production resources are:

A) means of labor:

Buildings (industrial, residential, etc.),

Structures and transmission devices (hydraulic, pipelines, power lines, etc.),

Power machines and equipment (heating equipment, complex installations),

Working machines (compressor machines, pumps, handling equipment),

Vehicles (motor transport, industrial transport, etc.),

Measuring instruments (instruments for electrical and magnetic measurements, optical, light and electron microscopes),

Tools and accessories (main tools, auxiliary tools);

b) objects of labor - fuel (solid, liquid); energy (electric, steam, water, compressed air); raw materials and supplies (basic and auxiliary); spare parts for repairs; container; low-value and high-wear items; semi-finished products (purchased);

V) labor resources - the number of employees of the enterprise by category, age, education, skill level; movement of numbers; working time, its losses; labor productivity in various measures; wage fund, its structure by category; composition of the wage fund, wage level;

G) financial resources - cash in the cash register, on the current account, in other settlements; accounts receivable, accounts payable and other funds.

The results of production and economic activities are:

A) product of labor - finished products and industrial works outsourced; finished products - finished products; spare parts; cooperative supplies sold outside the main activity; semi-finished products and products of auxiliary workshops to the outside;

b) production efficiency indicators - cost of production; profit and profitability;

V) financial operations - a cycle of operations that complete the use of resources at different stages of the circuit. This includes the formation of own working capital, the use of borrowed funds, accounts payable, the formation of various reserves, depreciation charges and targeted financing.

The processes of production and economic activity are:

A) supply - begins with the purchase of material assets and ends with their entry into production;

b) production - covers all operations, starting from the moment materials enter production and ending with the receipt of finished products at the enterprise warehouse;

V) sale - begins with the shipment of finished products and ends with the receipt of revenue to the company’s bank account, which ensures reimbursement of costs and the formation of net income;

G) distribution - begins with the receipt of revenue and ends with the creation of prerequisites for the resumption of the production process, which are reflected in the distribution of part of the proceeds from sales for reimbursement of material costs and restoration of inventories and, thus, ends with the beginning of a new supply cycle.

Table 1.1. Characteristics of agricultural, industrial and information societies

To create an information base for management analysis, it is necessary to solve the following tasks:

o establish the volume, content, types, frequency of analysis;

o determine the methodology for solving individual problems, a system of indicators, factors;

o clarify decision methods based on the adopted methodology;

o determine the overall need for information on tasks;

o eliminate duplication of information by examining the interrelationship of analytical tasks;

o determine the volume, content, frequency, sources of information to form an information base for analyzing economic activities.

All necessary information should be classified into groups depending on the connection with the control system. Isolation of input, output, primary and derivative information makes it possible to find out the general direction of the formation of the information base.

In a broad sense, under analytical information, characterizing the activities of the enterprise, understand any data that can be obtained from various sources.

The main elements of information support include:

o documentation and document flow system;

o classification and coding system;

o information base (card files, arrays of normative and reference information, etc.);

o regulatory documents (job descriptions).

The main carrier of economic information is a document - a tangible medium containing information in a fixed form, drawn up in the prescribed manner and having legal significance in accordance with current legislation.

Each document is assigned a code in accordance with the national classifier of management documentation (OKUD). For a number of documents, unified and standard forms have been developed.

Documents come in different types (Fig. 1.9). They can be classified according to a number of characteristics (Fig. 1.10).

Rice. 1.9. Types of documents

Rice. 1.10. Document classification

Documents containing initial data of organizations and enterprises are usually called primary and documents containing general information and used for making management decisions - on weekends (see Fig. 1.9).

Output documents are classified according to the following criteria:

o the nature of the reflected management functions (types: technical preparation of production, accounting, technical and economic planning, etc.);

o presentation form (types: digital, alphanumeric, graphic);

o appointment (types: main, auxiliary);

o frequency of receipt (types: daily, ten-day, quarterly, annual, monthly);

o the urgency of compiling (types: operational, ordinary, non-urgent);

o mode of receiving output documents (types: inquiry, routine, interactive).

Depending on the place of origin, documents are divided into external, created outside the organization, and internal, circulating within the organization. External documents include plans approved by higher organizations, industry standards, instructions, etc. Depending on the management functions performed, accounting documents, planning documents, statistical documents, and operational management documents are distinguished.

When working with documentation of all types, you should adhere to terminology standards. For each concept, one standard term should be established. Areas of work on standardization in management analysis are related to the development of clear terminology and concepts used in methods, standardization of a system of factors and indicators, development of a unified system of symbols and conventions, standardization of methods for conducting management analysis.

Analytical information can be of a financial or non-financial nature. Financial information dominates reporting, but the role of non-financial information is also very significant.

Analytical information financial character is data expressed in monetary terms. Analytical information non-financial nature - this is any quantitative data measured in natural units, as well as the descriptive part of the management report, including facts and circumstances that cannot be accurately assessed in monetary terms (for example, a description of the analysis methods used).

The level of management analysis generally depends on the goals and objectives of management, available information, software, technical and personnel support. The higher the level of analysis, the more detailed you can imagine the economic picture of ongoing processes and phenomena at the enterprise, the more accurately you can predict the future.

The main sources of data in management analysis include information: accounting, regulatory, scientific, best practices, reporting, and the current performance of the facility.

Reporting is recognized as one of the most complete sources of information: statistical, accounting, management, tax.

Management reporting is intended for use in the management of an economic entity (management, other management personnel). In this regard, the content, frequency, timing, forms and procedure for its preparation are determined independently by the business entity. At the same time, best management practice shows that the most useful and effective is the construction of management reporting in which the content and procedure for its preparation are based on the same principles on which individual accounting and consolidated financial statements are prepared.

the main task in the field of management reporting lies in the widespread dissemination of the best practices of its organization, as well as the experience of using it in the management of an economic entity.

Tax reporting(tax returns) is intended for fiscal purposes and is required for preparation by business entities, the circle of which is established by tax legislation. Tax reporting must be prepared on the basis of information generated in accounting, by adjusting it according to the rules of tax legislation.

the main task in the field of tax reporting is to reduce the costs of its formation due to the significant approximation of tax accounting rules to the accounting rules.

Financial statements- a unified system of data on the property and financial position of an organization and on the results of its economic activities, compiled on the basis of financial accounting data in order to provide external and internal users with generalized information about the financial position of the organization in a form that is convenient and understandable for these users to make certain business decisions.

Management analysis in the management process acts as an element of feedback between the control and managed systems, which is a process of informing interested managers about the correspondence of actual performance results to the expected or desired ones. Information, as a rule, passes through the internal management reporting system and serves as an integral part of the organization’s more general internal control system. The more the manager is focused on achieving results, and this is the main goal of management accounting, the more he needs feedback through internal reporting, informing him about the effectiveness of the responsibility center. Internal management reporting is compiled primarily for the manager responsible for achieving the goals, and only then for his boss. The disadvantages of internal reporting, typical of traditional approaches to internal control, are that the emphasis is on errors rather than providing managers with targeted information that allows them to take effective action. As a result, feedback is aimed at conducting audits and looking for omissions. It turns control into past events and operations, generates data about what can no longer be corrected, and limits the ability to act with perspective.

The most common deficiencies in internal reporting are:

o information is summarized primarily to control sales volume or determine costs and is not related to the needs of individual managers whose activities generate income or require costs;

o the information summarized in the reporting is addressed to the wrong persons, often not even for the manager who is on the front line of economic activity, but for his boss or manager;

o reporting provides specific information on general issues, which makes it difficult to make decisions in specific areas;

o the reporting is dominated by redundant unnecessary information. As a result, the manager is tasked with sorting through the information in search of the information he really needs to manage.

To the highest levels of management, the volume of information is reduced, and the responsibility (significance) of decisions made increases. Internal management reporting, along with the chart of accounts of management accounting, is a system-forming element, the main backbone on which the entire management structure rests.

Information support contains information about the external and internal environment of the organization. At the same time, there are two information flows about the external business environment and two about the internal one.

1. Information about the external business environment:

1) a set of economic and political entities operating outside the enterprise;

2) the relationship that develops between them and the enterprise.

2. Information about the internal business environment:

1) relationships in the team, which determine the saturation of information flows and the intensity of communication flows;

2) meanings laid down and generated in production.

Management analysis occupies an intermediate place between the collection and processing of economic information and the adoption of management decisions, both strategic, expressed in drawing up plans, and tactical - on the operational regulation of the progress of production necessary to achieve planned goals. It is considered as one of the functions of production management.

A number of conditions are imposed on the organization of information support for analysis: analytical information, objectivity of information, unity, efficiency, rationality, etc.

The basis for the effective functioning of the management system is the quality of management awareness.

At poor information system the state of management depends on unknown circumstances and distorted data, as well as on the subjective interests of employees, when the manager is told something that is not really necessary. The interests of the staff, which run counter to the interests of the organization, have destroyed more than one organization. The head of the organization must have information on the following issues:

o about the accepted goals of the organization’s activities;

o about long-term and short-term strategy, tactics of the organization adopted at this stage of activity;

o about the main events in the macroenvironment concerning the activities of the organization;

o about the state and changes occurring in the microenvironment;

o about the current state of the organization and the development forecast for the planning period;

o on the main proposals for strategic partnerships and business operations.

o the composition of a complex of documents, sets of documents included in the complex;

o nomenclature of data included in the document;

o frequency of presentation.

Such a set of documents maintained by an organization to assess its condition may include sets of periodic, continuous and forecast information. The set of periodic information includes daily and weekly information.

Daily report can cover the main events that happened in the organization during the day.

Weekly - analyze completed transactions during the week, the implementation of contracts, market conditions, bring to the attention of the first person difficulties and shortcomings in the organization’s work.

To create an analysis information base it is necessary.

1. Accounting and analysis. Economic activity as an object of accounting, analysis and control

Economic activity is the activity of individuals and enterprises of various forms of ownership and organization, carried out within the framework of current legislation and associated with production or trade, provision of services or performance of a certain type of work in order to satisfy the social and economic interests of not only the owner, but also the workforce.

In the internal management system of any enterprise, the decisive link is accounting, which ensures the collection, systematization and synthesis of data necessary for management. Accounting represents a type of activity whose subject is information. Accounting establishes the presence, measures and records the results of economic activities from a quantitative and qualitative perspective.

The purpose of accounting is to streamline information flows for effective use in management decisions and preserve information for the archive.

Various types of business analysis and analysis and their results are widely used by a wide variety of stakeholders.

Typically, in business activities, a distinction is made between financial accounting and management (accounting) accounting.

1. Financial accounting is based on accounting information that, in addition to being used within the company by management, is communicated to those outside the organization.

2. Management accounting covers all types of accounting information that is measured, processed and communicated for internal use by management. The division of accounting that has developed in practice gives rise to a division of analysis into external and intra-economic analysis.

External financial analysis can be carried out by interested parties. The basis for such an analysis is mainly the official financial statements of the enterprise, both published in the press and presented to interested parties in the form of a balance sheet. For example, to assess the stability of a particular bank, the client looks at the banks’ balance sheets and, based on them, calculates certain indicators for comparison with stable banks. But, unfortunately, a complete, comprehensive analysis cannot be done due to the incompleteness and limited information presented in the financial and accounting documentation.

External analysis includes analysis of absolute and relative indicators of profit, profitability, balance sheet liquidity, solvency of the enterprise, efficiency of use of borrowed capital, and general analysis of the financial condition of the company.

In contrast, internal financial analysis is necessary and carried out in the interests of the enterprise itself. On its basis, control is exercised over the activities of the enterprise, not only over financial activities, but also over organizational ones, and further ways of production development are outlined. The basis for such an analysis are the financial documents (reports) of the enterprise itself, this is the balance sheet in extended form, all kinds of financial reports, not only for a certain date (month, year), but also current ones, which allows you to have a more accurate description of the affairs and stability of the enterprise. The main direction of internal financial analysis is analysis of the effectiveness of capital advances, the relationship of costs, turnover and profit, the use of borrowed capital, and equity. In other words, all aspects of the enterprise’s economic activities are studied. Often certain areas of such analysis may be trade secrets.

Analysis of economic activity is one of the main elements of management of any organization. It serves as a means for identifying reserves, justifying business plans, and monitoring their implementation with a focus on the ultimate goal of the business - making a profit.

MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE

University of Economics and Management

Faculty of Economics

Department of Accounting and Audit

COURSE WORK

by discipline

"Management Accounting"

Topic: "Management accounting and analysis of management problems"

Completed by: student

Course ________ department

groups ______

Scientific director

____________________________

____________________________

The work was handed over "____"__________ _____.

Checked and approved for protection "___"__________ _____ g.

The defense took place "_____"__________ _____.

Grade _______________________

Simferopol, 2007

INTRODUCTION.. 3

Section 1. Management accounting, essence, goals and objectives scope of application 5

The essence of management accounting and the main differences from financial accounting 5

1.2. Systems and types of management accounting. 13

Conclusions on the first section. 24

Section 2. Main directions of analysis in management accounting. 26

2.1. Cost analysis. 26

2.2. Analysis by responsibility centers. thirty

2.3. Direct costing 37

2.4. Approaches to effective management accounting in an organization 44

Conclusions on the second section. 51

CONCLUSION... 53

Bibliography... 56

APPENDIX 1. 57

Appendix 2. 58

INTRODUCTION

The relevance of the study of management accounting and the analysis of management problems using this accounting tool is undeniable. Today everyone understands that 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 managed system, control actions and the external environment. Management accounting is a field of knowledge and field of activity related to the formation and use of economic information for management within an economic entity (enterprise, firm, bank, etc.). Its purpose is to help managers (managers) make economically sound decisions.

The subject of research in the course work is the subject of management accounting. The direct object of the study is management accounting and analysis of management problems performed using a management accounting system.

The purpose of the work is to characterize the object in accordance with the subject based on the study of literary sources. To achieve this goal, the following tasks are expected to be solved:

Consider the essence of management accounting and the main differences from financial accounting, explore the management accounting system and determine development trends;

Summarize the results of the study in the form of conclusions.

The main methods used in the work are systematization, generalization, comparison, analysis and synthesis, induction and deduction. Systematization is a general scientific method with a wide range of applications. First of all, this method allows you to study elements based on the main factor connecting them. Generalization can be described as synthesis. This is one of the most crucial moments in any analysis, because here it is necessary to be able to separate the influence of typical factors from random ones. Induction and deduction are two complementary methods that connect the general and specific aspects of the phenomenon or process being studied. For example, analysis of the dependence of financial results on sales volumes presupposes knowledge of factors of such influence and the ability to determine the most significant of them in total terms. The induction method allows you to determine the quantitative characteristics of various indicators and draw a general conclusion for each indicator and their system. Deduction, which works in the opposite direction, i.e., from the general to the specific, can be applied when the overall result is doubtful or wary.

Structurally, the work consists of an introduction, two thematic sections, a conclusion (conclusions), a list of references and applications. The first chapter examines the theoretical and methodological foundations of management accounting, its content and system, its role in entrepreneurial activity and business related to production. The second section reveals the main areas of analysis used in management to solve management problems.

The main sources that served as the basis for the research in the work are the works of Adamov N., Drury K., Dsyatkina I.V. , Karpova T.P. , Murymov A. A.

Section 1. Management accounting, essence, goals and objectives scope of application

The essence of management accounting and the main differences from financial accounting

The increasing complexity of business and the need to make management decisions in a dynamic and difficult-to-predict environment have led to the process of transforming traditional accounting into a system for processing and analyzing financial information.

If the user of this system is the tax office, then we are talking about tax accounting. Since taxes are collected from the company by the state, tax accounting is regulated by legislative acts and instructions of the tax service.

Excessive tax pressure forces enterprises to evade taxes, which largely determines the formal and fictitious nature of the company’s tax reports. They mix real economic events with fictitious transactions, the sole purpose of which is to reduce taxes to the lowest possible level. If the users of the financial system are the founders of the enterprise, shareholders, investors and creditors, then the information is provided in accordance with the rules of financial accounting. In other words, financial accounting is a universal language through which stakeholders can obtain information about the financial position of an enterprise. In our country, the protection of the rights of shareholders and investors is in its infancy and financial accounting is largely formal in nature.

Enterprises are not interested in objective coverage of their activities in relation to external users. High incomes can attract the attention of tax authorities and criminal communities, so companies underestimate the amount of profit received in their financial reports.

In many ways, financial accounting duplicates tax accounting and does not reflect the real situation in the enterprise. The need to raise funds in financial markets forces enterprises to show part of their achievements in financial statements and use international accounting rules.

The only source that allows a complete picture of the activities of an enterprise is intra-company, or management, accounting. Users of the financial system in this case are company managers who are interested in obtaining the most reliable information.

The problem of development of management accounting in our country is the shortage of highly qualified personnel. Heads of the accounting service, as a rule, are well versed in the intricacies of tax accounting and begin to mechanically use its principles in the preparation of internal company reporting. The accountant will keep all operations of the company that will be hidden from the tax inspectorate in his head, not without reason believing that it is very difficult to fire such a head. As a result, instead of a clear and holistic picture of the financial component of the business, the manager will have on his desk a pile of unnecessary papers and fragmentary information, flavored with narrow professional accounting jargon. The management of the company will be carried out on a whim, which sooner or later will lead to bankruptcy or takeover by a stronger competitor.

In order for a business to develop and survive competition, the manager must have a complete and clear picture of the financial activities of the enterprise. And only management accounting can help him in this. One of the main functions of management accounting is to establish effective communications between various departments of the company, develop systems for effective motivation of employees, and organize control over the use of company resources and their safety. The most logical step for the effective creation of management accounting is the formation of a special structural unit, the rank of the head of which should not be lower than the status of chief accountant. The management accounting system will not be a priority, which will immediately affect the quality and real usefulness of the information prepared for the company’s management.

Management accounting will certainly increase the efficiency of the enterprise/organization, but this will inevitably entail changes in the practical work of the enterprise. All the main processes of production and economic activity of an enterprise: supply, production, sales and the management function coordinating them 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 received that exceeds the costs incurred. Essentially, 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 managed system, control actions and the external environment. In this understanding, economic information acts as the basis for the processes of preparation, adoption and implementation of management decisions.

Economic information for the management of business organizations is generated in systems of planning, accounting and analysis of production and financial activities.

In general, the system for providing an enterprise with economic information can be represented as the following diagram (Fig. 1.1).

Fig.1.1. The relationship between financial and management accounting and economic analysis.

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

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

Information generated by the management accounting system must meet the following requirements: reliability; completeness; relevance; integrity; understandability; timeliness; regularity.

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

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

Fig.1.2. The relationship between accounting, production and management accounting.

From the above diagram it is clear that management accounting consists of two components: production accounting, intended for internal (in-plant, as they said before) 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 and creating its system, it is necessary to combine both of these functions. They can exist separately: production accounting keeps records of the costs and results of production and sales, and financial accounting, in addition to maintaining accounting records, drawing up a balance sheet and other forms of reporting, participates in the management of financial transactions and flows of funds and related activities. In small organizations, the functions of management and financial accounting should be combined into a single service.

The main principle of management accounting is its focus on meeting the information needs of management, solving the problems of intra-company management of various levels of rights and responsibilities. At the same time, information must precede decisions made. Management accounting data is needed primarily by those who manage the expenditure of resources or carry out these expenditures themselves. Therefore, one of the principles of accounting for management is a focus on grouping costs and results of activities by in-plant, intra-company divisions of the enterprise. Having knowledge of management accounting information, top-level managers can monitor all financial and economic activities of the enterprise, i.e. monitor ongoing processes in real time, promptly monitor work results, take timely measures to eliminate shortcomings leading to higher costs and reduced profitability of production and sales.

For management accounting, it is important not only to calculate the absolute value of indicators, but, above all, deviations from specified performance parameters, and focus on identifying factors influencing deviations. Their identification underlies control by deviations, in which corrective action on the controlled object is carried out on the basis of information about deviations from predetermined parameters of the state or behavior of the object.

The most significant differences between financial and management accounting are as follows (Fig. 1.3)

Ultimately, management accounting, unlike accounting, does not imply actual accounting of the amount of property, costs and income, the state of settlements and obligations and conditions affecting 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 verify the effectiveness of the implementation of decisions made.

Fig.1.3. Comparative characteristics of financial and management accounting.

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

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

planning 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 assessing business efficiency in general and by division of the organization, identifying the degree of profitability of certain types of products, works, services, sectors and market segments;

adjusting control influences on the progress of production and sales of products, goods and services, reducing subjectivity in the decision-making process at all levels of management.

Based on this, the main objectives of the organization of management accounting are orientation towards achieving a predetermined goal of entrepreneurship, the need to provide alternative options for solving a given problem, participation in the selection of the optimal option and in the calculation of standard parameters for its implementation, orientation towards identifying deviations from the specified execution 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 advancing data for making management decisions and the principle of responsibility for its consequences. Correctly assessing upcoming expenses and income is much more important than noting lost opportunities. At the same time, if there is no responsibility for business results at all levels of management, maintaining management accounting makes no sense.

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

· cost recording and reporting, including categorizing, summarizing, presenting and interpreting cost data to interested users;

· determination and assessment of costs for specific products, services or places where costs are generated, responsibility centers;

· cost management and cost analysis, i.e. presentation of cost data in the form of information suitable for management planning and control.

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

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

1.2. Systems and types of management accounting

Any system is a set of elements that are in relationships and connections with each other, which form a certain integrity of unity. In the accounting system, such elements are economic assets, sources of their formation and receipts, economic processes and their results, i.e. objects of financial accounting. The system-forming features here include the possibility of assessing the organization’s activities in a single cost meter, the correspondence of the model of accounting tasks to the circulation of economic assets, the use of a single, interconnected chart of accounts, the retrospective nature and legal validity of its data.

Elements of the management accounting system are also its objects and the relationship between them. Basically, they are the same as in accounting, but are considered not from the standpoint of stating and analyzing the fact of the availability and movement of funds, sources of their formation, changes under the influence of business transactions, but from the standpoint of the use of resource consumption, the ratio of costs and results obtained. In addition to traditional indicators for financial accounting, the objects of management accounting are additional indicators of added and discounted value, marginal profit, cash inflow and outflow, amounts and coverage rates and their derivatives.

According to the intended purpose, management accounting systems can be divided into strategic accounting for top management of enterprises, companies, firms and current accounting for internal management. In both cases, management accounting is intended to teach managers to evaluate their capabilities and effectively control the resources consumed in pursuing those capabilities.

Strategic accounting is forward-looking. Not a single economic organization can count on constant and ever-increasing success of its activities over many years. Moreover, if it does not develop, sooner or later it will face financial collapse. Strategic accounting information and the use of its data should enable decisions to be made that prevent this from happening.

The management function, or the reaction of management to management accounting data, consists of a set of measures to achieve the set goal, evaluate the performance of various divisions of the enterprise, and develop corrective actions in case of deviation from the norms and standards of costs, production volume and sales.

Operational accounting ensures the identification of bottlenecks in the activities of the enterprise, in its production and sales capabilities, generates information for managing the range of products and goods, costs and results of production and sales activities, helps in determining supply prices and participation in the market, provides other information for making operational decisions. management decisions.

The basis of operational management accounting is the calculation of production and sales costs as a set of variables, depending on the volume of activity, expenses and costs for organizing and managing an enterprise, which are predominantly constant, depending on the duration of the reporting period. This is the so-called reduced cost or variable cost accounting system (direct cost, variable cost, marginal cost accounting).

Operational accounting for management partially performs the functions of internal control of the economic efficiency of the enterprise and its divisions, the profitability of production and sales of individual products, goods and services.

An integral part of this type of accounting is the operational diagnostics of the financial and economic activities of the enterprise. It monitors and analyzes the financial condition of organizations, their break-even level, assesses risks and develops recommendations for risk management.

Information for internal management is subject to a number of specific requirements that differ from the requirements for information for financial accounting and accounting information for external users. She must be :

· operational, formed according to the principle “the faster, the better”;

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

· targeted - oriented towards a specific consumer - manager and the tasks he solves;

· sufficient - management accounting information should not be redundant, but quite sufficient for making appropriate decisions;

· economical to obtain and use;

· flexible, adapted to the possibilities of changes in business.

Reporting and information systems for management act as means of communication and perform the most important task - transferring data from planning and control systems to those levels of management that are responsible for making decisions on certain issues. Reliable, clear and concise, complete and timely information, structured both by levels of responsibility and degree of complexity of decision-making, must be presented for their consideration.

Improving the philosophy of management accounting. Features of the development of management accounting in Ukraine.

Management accounting has Western roots and is a new thing in our country. But in the West, this area of ​​practical knowledge has evolved for quite a long time.

So, in the 1980s. Criticisms of management accounting practices began to appear in professional and academic literature. The most thorough criticism comes from Robert Kaplan of Harvard Business School. In a number of publications, he questioned the relevance of modern management accounting practice.

In 1987, he co-authored the book Lost Significance: The Rise and Fall of Management Accounting with Thomas Johnson. The book has become widely known, in particular, thanks to the authors’ statement that firms still use management accounting practices, the “just-in-time” principle was developed more than 30 years ago and therefore has become outdated in the modern era of competition and production development. Although opinions are divided on the need for changes in management accounting, many experts firmly believe that fundamental changes are required.

The principal criticisms of modern management accounting practice are as follows:

· traditional management accounting does not meet the requirements of the modern level of production development and increased competition.

· Traditional cost accounting systems provide misleading information that is unsuitable for decision making.

· the practice of management accounting loses its independence, following the requirements of financial accounting, and acquires an auxiliary character.

· management accounting focuses almost entirely on the internal aspects of a company's activities and does not pay attention to the business environment in which the company operates.

Let's look at these comments in more detail.

Inability to respond to changes in the level of production development and increased competition. In the 1980s Advanced industrial technology (AIT) and just-in-time production methods have brought significant changes to the production processes of many organizations. Companies have realized that successfully competing against competitors requires producing improved, high-quality products at low cost and providing superior customer service. Many companies have responded to these competitive demands by investing in PMT, adopting a just-in-time manufacturing philosophy, and focusing on goals such as high quality, product innovation, on-time delivery, and flexibility in customer service.

These changes have led to many problems, for example: how to evaluate the effectiveness of investments in APP, how to calculate the cost of a product, how to change the control system and performance indicators of the company so that they stimulate managers to achieve the company's new strategic goals in the field of production and competition. Some organizations argued that their cost accounting systems hindered rather than facilitated changes in their operations. As a result, a number of specialists argued that management accounting needed a revolution that would reflect the revolution in production.

The basic requirement of production in a market economy is expressed by the concept of just-in-time, which is to produce the right components at the right time and only when they are required. A survey conducted by K. Drury showed that 84% of the companies surveyed value inventories based on full cost division calculations to calculate monthly profits for internal financial reporting purposes. If a costing system with full cost allocation is used to estimate inventories, profit center managers can increase profits by increasing inventories. This causes the profit measurement system to operate in the opposite direction to that of the just-in-time philosophy. Reports on the execution of estimates arrive too late, so they cannot be used to control production radios. Typically these reports are compiled on a monthly or weekly basis. However, industrial companies that have implemented “on-time” production, as a rule, have short production cycles and therefore information about problems arising in production should be received immediately, or at least daily. Companies with a JIT philosophy would like to focus on metrics that reflect quality and reliability of production rather than on purchase price variances that distract attention from key metrics. These indicators should combine all the factors important for purchasing activities, in particular the quality and reliability of suppliers, and not just prices. Some experts argue that the concept of setting standards is incompatible with the continuous improvement principle of the just-in-time philosophy. When standards are established, they seem to replace the desire for continuous improvement with the desire to achieve precisely these standard indicators. The dynamics of performance indicators over different periods of time provides useful feedback in the form of information about the rate of change in the functioning of production.

Management accounting reports have traditionally tended to focus on costs. However, if you do not pay due attention to non-financial indicators, which are so important for successfully confronting competition in the business environment, then company managers and personnel will strive to focus efforts only on improving cost indicators, and therefore ignore the equally important marketing, management and strategic aspects of activity companies.

Limitations of traditional manufacturing costing systems. At the end of the 1980s. Manufacturing cost measurement and profitability analysis have become increasingly popular. Full production costs are calculated for financial reporting purposes. Management accounting literature suggests that total production costs calculated using financial accounting principles are not suitable for decision making. It is argued that decisions should be made on the basis of an analysis of incremental (avoidable) costs. According to this approach, decisions such as starting a new product, discontinuing a product, and setting product prices should be based on examining only those incremental costs and revenues that are determined by the decision. This approach requires special studies if necessary. However, for complex, multi-dimensional real-world situations where companies produce a wide range of products, it may not be practical to uniquely assign relevant costs to each decision because the number of possibilities and options that a manager faces at any given time is many.

Based on a review of 150 cost accounting systems in the United States, Cooper argued that all companies used traditional full manufacturing costs of a product to make decisions. The disadvantages of traditional full production cost decision making have been discussed extensively in the works of Johnson and Kaplan. Traditional manufacturing costing methods were created decades ago when companies produced small quantities of products and the major factory costs were those of key production workers and basic materials. Overhead costs were low and therefore misstatements arising from failure to accurately attribute overhead costs to specific products were negligible. At the same time, processing costs were significant enough that it was difficult to justify more precise and complex methods of allocating overhead to products.

Currently, companies tend to produce a large range of products; Labor costs for key production workers represent a small portion of total costs, while overhead costs have become more important. Simplistic methods of allocating overhead costs to products based on the ever-decreasing labor costs of key production workers can no longer be justified, especially now that information processing costs are no longer a constraint on the implementation of more complex data processing systems. Moreover, intense competition in the global marketplace has created a need for more accurate information about the impact on company profitability of product mix decisions and whether product production starts or stops. Against this background, the method of cost accounting by function arose.

Transformation of management accounting (into an auxiliary tool for financial accounting). According to Johnson and Kaplan, management accounting has become a supporting tool for financial accounting. The argument is that production costs calculated for financial accounting purposes are also used for decision making. Such calculations involve arbitrary allocation of overhead costs to products and do not reflect the amount of resources consumed by specific products. Costs calculated based on financial accounting principles provide sufficient accuracy to allocate costs between cost of goods sold and cost of inventory, which is necessary for external financial reporting. But they distort the individual cost of a product through the mutual subsidization of production costs that arises from improper allocation of overhead costs. Therefore, strategic decisions are subject to financial reporting requirements.

Drury's research provides evidence to support Johnson and Kaplan's assertions that cost accounting systems primarily serve external financial reporting needs. When preparing monthly internal earnings reports, most companies rely on external reporting requirements and estimate inventory based on full cost allocation, although there are strong arguments for using marginal costing for internal earnings reporting. Almost all companies used the reduction of historical cost to make pricing decisions, while replacement cost should be used for management accounting.

Companies must make informed choices and provide sufficient reasons to approve financial reporting requirements as the basis for obtaining management accounting information. Management accounting information should not simply be a by-product of external financial reporting systems.

Lack of attention to the external environment in which the company operates. Management accounting has been criticized for its predilection for comparing company costs and revenues and for its lack of attention to the external conditions in which the company operates. Critics of management accounting argue that it is necessary to focus more attention on the prospects of the company's activities, introducing into the reporting indicators that characterize the company's sales markets and indicators that characterize its competitors. This externally oriented approach is known as strategic management.

In the USSR, which included Ukraine, the term “management accounting” was not used. A significant part of the indicators (financial and non-financial) of current internal reporting was based on operational rather than accounting data. Accounting was essentially financial accounting aimed at monitoring the preservation of socialist property and the implementation of state plans. At the same time, accounting data was also used for management in order to reduce costs and increase profitability. The development of market relations in Ukraine has led to an increase in the need for accounting information necessary for enterprise management. Therefore, the term management accounting appeared in the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” adopted in 1999 as a synonym for intra-business accounting. This Law contains the following definition: “Intra-economic (managerial) accounting is a system for processing and preparing information about the activities of an enterprise for internal users in the process of enterprise management.” At the same time, Article 8 of the Law provides that the enterprise independently develops a system and forms of on-farm (managerial) accounting.

However, the feasibility and possibility of practical division of accounting into financial and managerial in Ukraine, Russia and other countries - former republics of the USSR is perceived ambiguously and is the subject of wide discussion. Fans of the division of accounting into financial and managerial (G. Chumachenko, V. Paliy, V. Ivashkevich, etc.) believe that such a division does not violate the unity of the accounting system, since we are not talking about a methodological division of accounting, but about organizational changes. Opponents of this division (Ya. Sokolov, B. Valuev, O. Borodkin, etc.) believe that accounting is the only and indivisible, and management accounting is expense accounting and cost calculation, which artificially try to separate individual, mostly young people, from accounting , specialists focused on Western traditions.

Enterprise management and other users of accounting information need timely, reliable and relevant information. If an enterprise has a need for certain information in addition to mandatory accounting, it can create such an information system and give it any name: “controlling”, “intra-business accounting”, “management accounting”, etc. This definition of accounting tasks makes it possible to talk about the need creating a global accounting system that should meet the information needs of both external and internal users (Fig. 1.4).

Fig.1.4. Global accounting system

Therefore, management accounting should be considered as an accounting subsystem that provides financial and non-financial information necessary for making decisions aimed at achieving the strategic goal of the enterprise.

Conclusions on the first section

1. The increasing complexity of business and the need to make management decisions in a dynamic and difficult-to-predict environment have led to the process of transforming traditional accounting into a system for processing and analyzing financial information. In order for a business to develop and withstand competition, the manager must have a complete and clear picture of the financial activities of the enterprise. Management is impossible without information or a set of information about the state of the managed system, control actions and the external environment. Management accounting is a field of knowledge and field of activity related to the formation and use of economic information for management within an economic entity (enterprise, firm, bank, etc.). Its goal is to help managers (managers) make economically sound decisions; the main objectives of the organization of management accounting are orientation towards achieving a predetermined goal of entrepreneurship, the need to provide alternative options for solving the problem, participation in the selection of the optimal option and in the calculation of its normative parameters execution, focus on identifying deviations from specified performance parameters, interpretation of identified deviations and their analysis.

2. According to the intended purpose, management accounting systems can be divided into strategic accounting for top management of enterprises, companies, firms and current accounting for internal management. An integral part of this type of accounting is the operational diagnostics of the financial and economic activities of the enterprise.

3. Management accounting has Western roots and is a new thing in our country. But in the West, this area of ​​practical knowledge has evolved for quite a long time.

Section 2. Main directions of analysis in management accounting

2.1. Cost Analysis

Cost is the use of a certain resource to achieve a certain goal. Costs are always associated with a specific object. Objects can be types of activities, branches and structural divisions, products and services produced, projects and programs.

Cost information is accumulated by the accounting system and then distributed among cost objects. Cost allocation can be direct when there is a clear relationship between the amount of resource spent and the amount of output produced.

For example, to produce 1 ton of gasoline, it is necessary to consume 1.5 tons of oil. Of course, in reality, more or less oil may be needed, depending on the technological scheme used, the efficiency of the equipment and the amount of theft, as well as the validity of the standards used at the enterprise. However, we can say with confidence that with the existing management, control and technology system at the enterprise, a very certain amount of oil will be required to produce a certain amount of gasoline. The cost of the oil used will be called direct plant costs.

The relationship between the result obtained and the resources used is not always direct and obvious. When an additional analytical procedure is needed to link resources and results, we talk about indirect, or overhead, costs.

For example, you should not determine how many microns the machine was worn out during the production of a given part, but with the help of an additional calculation you can always find out a more or less correct estimate of the costs due to equipment wear during the production of a given part. Typically, the analytical procedure for determining indirect costs is based on measuring the actual value of a special indicator called the “cost driver”. The peculiarity of this indicator is that its change allows one to quite accurately determine the change in the value of costs. For example, the number of manufactured products, machine hours and equipment operating hours, and man-hours of key production personnel can be used as a driver of production indirect costs. To determine the cost, in addition to the actual value of the driver, a conversion factor is also used. The essence of this coefficient is an estimate of how much costs will change if the cost driver changes by one unit.

Let's say equipment operating time is a driver of indirect production costs. The following ratio is used as a conversion factor: 1 hour of equipment operation increases indirect production costs by 15 den. units . If in February the operating time of the equipment was 20,000 machine hours, the estimated value of indirect production costs will be $300,000 (20,000 hours * 15 den. units / hour).

The most important criterion for choosing a cost driver is the accuracy of determining the amount of estimated costs: at the end of the year, when actual and estimated costs are compared, the difference between them should be minimal. If the estimated costs turn out to be higher than the actual ones, then by the amount of the discrepancy it is necessary to increase the profit and reduce the company's costs obtained by calculation. If the estimated costs turn out to be lower than the actual value, in this case the difference should reduce profit and increase costs (cost) obtained by calculation.

If the difference between actual and estimated costs, in the opinion of the company's management, is too high, another driver should be used (for example, man-hours of work of key production personnel). Sometimes several drivers are used at once to more accurately determine the amount of costs.

If costs change proportionally to changes in the driver, they are called variable costs. An example of variable costs is the cost of raw materials in the production of finished products. If the cost does not change despite a change in the cost driver, then it is a fixed cost. An example of fixed costs could be a company's expenses for management and control, preventive maintenance work, cleaning and security.

Depending on the nature of their impact on profit, costs can be instantaneous or inventoryable. Instantaneous, or periodic, costs reduce profits at the time they are incurred. An example of such costs would be marketing and administrative expenses.

In this case, you should keep in mind the difference between the profit received for the purposes of management accounting and the profit shown in the reporting for the tax office. For example, advertising costs are taken into account in the costs of the enterprise according to certain standards. If the standard is exceeded, the excess is reimbursed from the remaining profit after taxes.

This kind of approach has nothing to do with the economics of the enterprise and pursues the only goal - to maximize the amount of tax withdrawals from the enterprise. In management accounting, we are interested in the true amount of profit, the real profitability of our business, so it is necessary to take into account immediate expenses in full.

Unlike instantaneous, inventory expenses are treated as an asset until the goods are sold. This means, for example, that when building a house, the costs are wages to workers and the cost of materials. All monetary expenses are considered as a change in the form of existence of the property complex, and only when the built house is sold do the expenses incurred during its construction become expenses that reduce the amount of profit.

Costs can also be grouped by stage of the production process: research and development costs, design costs, product manufacturing costs, logistics and marketing costs, after-sales service costs, and management costs.

When analyzing production costs, three-element and two-element cost systems are used.

The three-element system consists of direct costs of raw materials, materials and components, direct labor costs and indirect, or general production, costs.

The two-element cost system consists of direct costs for raw materials, materials and components, or direct material costs, and conversion costs. Conversion costs are nothing more than the sum of direct labor costs and indirect costs.

Using the concept of conversion costs is appropriate for high-tech industries, which are characterized by a relatively small amount of direct labor costs. For example, if direct labor costs account for 5-6% of an enterprise’s costs, then in this case it is more convenient to use a two-element cost system.

There are two approaches to estimating costs when making management decisions. In the first approach, the cost of producing one product includes both variable and fixed costs. It is assumed that the products produced must recoup all production costs. For example, if a company produces 1000 products and variable costs are 5 den. units per product, and fixed costs - 10,000 den. units, then the cost of producing one product will be:

5 days units + 10,000 den. units /1000 products = 15 den. units

This approach is called full cost accounting. Total costs are calculated when preparing financial statements and determining the profit earned by the firm. Sometimes it is useful to use an approach in which only variable costs are included in the cost of producing a product, and fixed costs are considered as periodic ones associated with the activities of the entire enterprise. This approach is called direct cost accounting. In our example, the cost of producing one product will be only 5 den. units

2.2. Analysis by responsibility center

Responsibility centers. All divisions of enterprises are structural divisions. Each division is headed by a manager who is responsible for its activities; therefore, each department can be called a responsibility center.

a) In reality

b) Reflection of information

Fig.2.1. Interaction between centers and the external environment.

As shown in part B of Fig. 2.1., the responsibility center has inputs: raw materials and supplies in physical wine, hours of various types of labor and various types of services. Typically certain assets are also required.

The responsibility center performs work with these resources and, as a result, produces goods or services as output. These products go either to another responsibility center within the organization or to external customers.

Although the resources used for production are mostly in physical form - pounds of materials and hours of labor - for the purposes of management control they must be expressed in monetary terms to aggregate physically dissimilar elements of resources. The monetary measure of the resources used in a responsibility center is their cost. In addition to cost information, non-accounting information is used on such issues as the physical quantity of materials used, their quality, and the professional level of the workforce.

If the responsibility center's output is sold to outside customers, accounting measures it as revenue. If goods or services are transferred to other centers of responsibility of the same organization, then they can be measured either in monetary form, such as the cost of transferred goods or services, or in non-monetary form - the number of units of products

Responsibility center managers need information about the activities of the unit reporting to them. In addition to historical information about inputs (costs) and outputs, managers need information about planned future inputs and outputs. A management accounting system that processes planned and actual accounting information about the inputs and outputs of a responsibility center is called responsibility center accounting. Unlike a system of differentiated costs and income, which is compiled for a specific task, accounting by responsibility centers assumes the existence of a constant flow of information, the flow corresponds to a constant flow of inputs and outputs of the organization's responsibility centers.

An essential characteristic of responsibility center accounting is that it concentrates on responsibility centers. Total cost accounting focuses on goods and services (formally called products or programs) rather than on responsibility centers. This difference in the subject matter is the difference between accounting by responsibility centers and accounting for full costs.

The cost matrix offers a way to distinguish between costs by responsibility center and total programmable costs. The rows of the matrix are centers of responsibility, and its columns represent production programs (which in a business aimed at making a profit is nothing more than the production of efficient types of products).

Each responsibility center in an organization usually performs work on different programs. For example, Mercury Sable brand cars (production programs) are assembled at the same factories (responsibility centers). For example, each of two production divisions - production and assembly - work with both products X and Y. The other two responsibility centers - production support and sales and administration - serve both production programs. Ultimately, in each cell of the matrix one can find data on specific inputs for the execution of specific programs at a specific responsibility center. These inputs are called cost elements (or line elements).

In total, the matrix shows three dimensions of cost information, each of which answers different questions: 1) where did this cost item arise (dimension of the center of responsibility); 2) for what purpose it arose (dimension of the program); 3) what type of resource was used (cost element dimension)? If cost information in cells is summarized by row, the result is accounting data for responsibility centers, which is important for management. If this information is summarized by columns, information on program (here commodity) costs is displayed, which is necessary to determine prices and assess the profitability of programs.

Efficiency and efficiency. The activities of a responsibility center manager can be measured in the form of effectiveness and efficiency of the responsibility center. By effectiveness we mean how well the responsibility center does its job, i.e. the extent to which it achieves the desired or intended results. Efficiency is used in an engineering sense, i.e. number of units output per unit and stroke. Effective activity is expressed either in the production of a delivered volume of output with minimal use of input elements, or the maximum possible volume of output for a given scale of use of input elements.

Effectiveness is always inherent in the goals of the organization; efficiency is not. An effective responsibility center is one that produces products with the least amount of resources. However, if this output does not coincide with the organization's goals, then the music center is ineffective.

Example. The responsibility center must be efficient and effective. In some situations, effectiveness and efficiency may be discovered in the same way. For example, in business organizations, profit represents effectiveness and efficiency. When a comprehensive measure does not exist, a classification of various performance indicators related to both effectiveness (for example, number of complaints per 1000 items sold) and efficiency (for example, number of labor hours per unit produced) is used.

Three elements of this relationship lead to the definition of the types of responsibility centers that play an important role in management control systems: that is, income centers, cost centers, profit centers and investment centers.

Revenue centers. If the manager of a responsibility center is responsible for monetary output (revenue) but is not responsible for the costs of the goods or services sold by the center, then the center is called a revenue center.

Cost centers. If a management system measures expenses (costs) incurred at a responsibility center, but does not measure its output in the form of income, then such a responsibility center is called a cost center.

Each responsibility center has output products, i.e. he does the work. However, in many cases, measuring this output as income is either impossible or necessary. For example, it will be very difficult to measure the monetary value of the output of an accounting or legal department,

Standard cost centers. A special type of cost center in which standard costs are established for many of its cost elements is called a standard cost center. The actual result is measured by the difference between the actual cost and these standards. Since standard costing systems are used in activities with a high level of task repetition, it is the basis of standard costing centers. Examples include assembly plants, fast food restaurants, blood testing laboratories, and auto repair shops. Conversely, most production support departments and administrative structures are not standard cost centers.

Profit centers. Income is the monetary expression of manufactured products; expenses (or cost) - monetary expression of the resources used; profit is the difference between income and expenses. If the activity of a responsibility center is measured as the difference between the income it receives and the costs it incurs, then this responsibility center is a profit center.

A profit center is like a miniature business. Like a stand-alone company, it has a profit and loss statement that shows revenue, expenses, and profit. Most of the profit center manager's decisions have an impact on the data in this report. Therefore, the profit and loss statement for a profit center is the main document of management control. Because profit center managers are measured by profit, they have an incentive to make input and output decisions that will increase their centers' reported profits. Profit centers operate as if they had their own business, so they are a good simulator for the sense of responsibility of general management. The use of the profit center concept is one of the most important tools that has made it possible to decentralize responsibility for profit in large companies.

Criteria for profit centers. In order for a responsibility center to become a profit center, the following conditions must be met:

· the volume of accounting records to measure output as revenue should be increased, and the responsibility centers receiving these outputs should take into account the cost of goods and services purchased;

· give the responsibility center manager more authority in making decisions on the quantity and quality of products produced or the ratio of product quantity to costs. In this case, the head of the profit center must control the inputs and outputs;

· a division that provides services to other centers cannot be a profit center, since they are usually provided free of charge. For example, if management conducts internal audit in a department, then the latter does not pay the costs of the internal audit service, and therefore the internal audit department is not a profit center.

It is ineffective to allocate a profit center when producing homogeneous products (for example, cement), where it is possible to use natural indicators (for example, tons of cement produced). The use of profit center techniques involves managers in their own business, competition arises between them, which makes it possible to improve the management of the unit. In other cases, when divisions within an organization must work closely with each other, the profit center principle may cause excessive friction between them and jeopardize the well-being of the entire company, which may cause interest in short-term results.

When organizing accounting, special attention is paid to cost items that are only partially controlled at this level. Taking this into account, in analytical accounting and reporting costs are divided into two groups: controllable and uncontrollable. Based on current accounting data for each responsibility center, the accountant regularly prepares a performance report. The content of the performance report depends on the type of center and the indicators used to evaluate its performance. In this case, the reports of the lower responsibility center are consistently included in the report of the higher responsibility center. From Table 2.1. it is clear that the report of the head of the cutting shop contains only controlled indicators, and its result is included in the report of the director of plant A. In turn, the report of the director of plant A is included in the report of the production director

Table 2.1.

Interrelation of reports of responsibility centers of different levels of management

Table continuation.

The budget execution report provides an opportunity to evaluate the activities of responsibility centers. The assessment of responsibility centers is based on deviation analysis.

2.3. Direct costing

The main purpose of direct costing is to be the information basis for entrepreneurial decisions. Direct costing is mainly focused on current solutions for managing the production and sales of products and goods. The main goal of such decisions is to maximize the profit of the reporting year. The entire set of tasks that require solutions in the operational direct cost system can be divided into supply, production and sales tasks. In addition, an important problem for an enterprise is the choice and justification of a pricing policy, for which direct cost data is also used.

The working tool of direct cost is the analysis of the relationship between production volumes, gross costs (cost) and profit, which we considered in calculating the zero profit point. These calculations are based, as a rule, on measuring production and sales volumes in physical units. In practice, they are possible at enterprises or their divisions that produce products and services of the same type. Other units of measurement of production volume and the degree of utilization of production capacity can be standard hours, machine hours, the percentage of useful operating time of machines, etc.

Based on the zero profit point formula, the value of the critical production volume, the critical sales price and revenue, the minimum marginal income and the critical level of fixed costs are found.

To determine the critical value of sales volume that must be ensured when the price is reduced in order to maintain the same marginal income, use relation (2.1):

MD0 x0 = MD1 x1,

Where x1 = MD0 x0/ MD1 (2.1)

where MD0, MD1 - marginal income before and after the price reduction; x0, x1 - production and sales volume before and after the price reduction.

With an increase in fixed costs and constant variable costs, the amount of marginal income does not change, and profit decreases by the amount of the increase in fixed costs. The critical volume of production and sales is increasing.

It is especially important to determine the impact of changes in fixed costs on the enterprise’s profit, since, as noted earlier, it is these costs that regulate the final results of the enterprise’s production and economic activities. In this kind of calculations, it is necessary to use at least three indicators: actual production volume, planned production volume and the level of utilization of the enterprise's production capacity.

In the practice of domestic analysis, comparing these indicators, as a rule, was limited to identifying the impact of cost overruns on the amount of profit reduction due to underutilization of capacity or failure to meet the production volume plan. But such a calculation cannot be considered exhaustive when analyzing the impact of volume on profit, since the cost of production is not the only influencing factor. Therefore, it is more correct to use marginal income rather than the amount of fixed costs to determine the impact of the use of production capacity on profit. In this case, it is possible to take into account the entire impact of the degree of utilization of production capacity on profit. Let us consider the methodology of such analysis using the example of calculation in Table 2.1. In this case, let us assume that the enterprise draws up an estimate for the optimal capacity utilization for given conditions.

When calculating the impact on profit of production volume only based on fixed costs, the overrun due to deterioration in the use of normal production capacity amounted to UAH 90 thousand. The calculation given in Table 2.1 shows that according to the same initial data, profit decreased by 240 thousand UAH, and the amount by which profit decreased coincides with the amount by which marginal income decreased.

Table 2.1.

Calculation of the impact of production volume (production capacity) on profit

Table continuation.

Calculating using the marginal income rate, we get the same results:

1). Profit deviations due to underutilization of normal capacity: (250,000 - 300,000) 4.00 = - 200 (thousand UAH).

2). Profit deviations due to failure to fulfill the plan for production volume: (240,000 - 250,000) 4.00 = - 40 (thousand UAH).

The impact on profit from the use of capacity (changes in production volume) is UAH 240 thousand.

Thus, the use of a marginal income rate allows us to more fully take into account the impact on profits of fluctuations in production volume or changes in the use of production capacity.

Analysis of the relationship between production volume, cost, profit and marginal income, as well as the influence of production volume on cost and profit, is a promising direction for the development of domestic analysis of economic activity in the conditions of the formation and development of market relations.

There are a number of general patterns in the use of direct cost data for enterprise management:

· assessment of the profitability or unprofitability of a particular solution option, its expediency or inexpediency is made on the basis of amounts and coverage rates, and not the amount of profitability calculated at full costs;

· as a criterion for evaluating comparable alternatives, decisions use the amount of savings in variable costs per unit of production, and not the total amount of savings or increase in cost;

· the marginal cost value is considered the maximum level of costs when assessing their effectiveness and feasibility;

· in all cases, when choosing the optimal solution, it is necessary to take into account the values ​​of limiting factors: sales opportunities, bottlenecks in production, lack of storage space, resource limitations, etc.

The optimal production plan is determined either by trial or (which is much more efficient) by solving a linear programming problem to maximize profit or machine utilization in the presence of several limiting factors.

Decisions in the field of production in the operational direct cost system are made based on data on the value of variable costs, rates and coverage amounts, taking into account the degree of utilization of production capacity over time. On their basis, questions are resolved about the choice of the type of equipment on which products can be manufactured or an order can be fulfilled, about the optimal placement of this volume on different machines, machine tools and other equipment in terms of cost.

A large group of management tasks that can be solved using these direct cost systems are tasks related to the selection and planning of the sales range, solving issues of product renewal, developing new market sectors, etc.

In a market economy, situations of rise and fall in production are possible, and therefore planning of the sales range should take into account the degree of utilization of production capacity (Table 2.2. Appendix).

The selection of products and goods for sale is carried out according to the criterion of the maximum coverage rate. A different decision is fraught with errors that can lead to negative results.

The choice of sales range and, accordingly, production volumes at full and partial utilization of production capacity can give different results when assessing the profitability of various options based on full and reduced costs. At the same time, it is not always possible to say that conclusions based on direct costing data are more correct than conclusions based on gross cost indicators. Everything is decided by taking into account the circumstances and goals of calculation and assortment policy.

In conditions of full utilization of production capacity, it is not enough to know the amount of profit per unit of product to include it in the production plan: if there are bottlenecks or limiting factors, it is necessary to calculate the value of the financial result per unit of the limiting factor.

When planning a production program, when there are a large number of limiting factors, linear programming methods, in particular simplex, are used.

In general, the production program optimization problem is written as follows (relation 2.2):

where xij is the production volume of the jth type of product, pcs.; cj - profit per unit of the j-th product, UAH; bi is the volume of the i-th type of resource (limiting factor); aij is the consumption rate of the i-th type of resource per unit of the j-th product.

In the traditional formulation, this is the problem of finding the optimal range of product output according to the criterion of maximum profit. From a mathematical point of view, this formulation of the problem is absolutely correct, but when assessing the results of its solution from an economic point of view, it is necessary to keep in mind that calculations based on data on the full cost may lead to incorrect conclusions. In this case, it is impossible to consider profit per unit of product as a constant value for any volume and structure of output. The formulation of the problem will be correct from an economic point of view if we eliminate the influence of the factor of fixed costs on the profit of the product. This can be done by using marginal income instead of profit as an optimality criterion. Direct costing provides information about marginal income in the context of manufactured products.

Direct costing and pricing policy. One of the most important areas of management activity of enterprises is price policy. Let's consider some aspects of pricing policy from the point of view of direct costing.

Currently, in a market economy, such approaches to pricing are more popular, in which, first of all, factors related to demand rather than supply are taken into account, i.e. an assessment of how much the buyer can and wants to pay for the product offered to him. After establishing the equilibrium price, it is necessary to analyze all the costs of the enterprise and try to reduce them as much as possible. Calculation of the actual cost of a product cannot be directly used in setting the selling price, but it should be taken into account when considering the issue of releasing a product, the estimated selling price of which is set taking into account market conditions.

Some price specialists believe that the level of demand should generally be the only factor to be taken into account when setting prices, with production costs considered only as a limiting factor in the decision. However, knowing the possible limits of price reductions depending on the influence of various market factors is just as necessary for an enterprise as researching the market itself. Therefore, in management accounting there are the concepts of long-term and short-term lower price limits.

The long-term price floor shows what price can be set to minimally cover the full costs of producing and marketing a product. It is equal to the full cost of the product. The short-term price floor focuses on a price that covers only variable costs. It is equal to the cost only in terms of variable costs. The calculation of the long-term lower price limit is associated with calculating the full cost of products, the calculation of the short-term lower price limit is subject to accounting and calculation using the direct costing system.

Relevant for domestic industrial enterprises that have the opportunity to enter foreign markets with their products, or enterprises with foreign capital participation, is the task of setting prices for export products, and often such a price needs to be set as low as possible in order to penetrate the market.

In the process of making decisions about the price of products and services sold, it is necessary to keep in mind that in market conditions the price largely depends on the relationship between supply and demand, the presence of competitors and competitive conditions.

With price competition, it is always important to know the lower limit of the price that allows the company to sell its products without loss. It is generally accepted that the lower limit of price is the level of variable costs per unit of goods. In general terms, possible options for making decisions on the lower price limit are presented in Table 2.3. Applications.

It should be borne in mind that the algorithm for making price decisions formalizes only the general principle of their calculation. Its reaction requires taking into account many other factors, and, above all, the relationship between supply and demand.

2.4. Approaches to effective implementation of management accounting in an organization

In recent years, interest in management accounting among senior and middle managers has been steadily increasing. It is generally accepted that management accounting is a necessary tool for managing an organization, allowing to improve the quality and efficiency of management decisions, maximize the expected result and effectively control the risks of business activities. Many enterprises have built information systems aimed at internal users. The demand for the services of consulting companies for setting up management accounting systems is actively growing. At the same time, today many managers do not always understand the role of management accounting in the organization and do not clearly understand the goals and objectives of its setting.

Two main features of management accounting can be noted - orientation towards the user of information and efficiency in providing data. Orientation towards the user of information - a specific manager of the organization - characterizes the essence of management accounting. At the same time, managers' information needs for decision-making and control will depend, firstly, on the functional area in which they specialize, and secondly, on their position in the organizational structure of the enterprise. In this regard, the management accounting system in a particular organization can be built in various ways that take into account this specificity (Figure 2.2).

For example, it could be a comprehensive information system that provides managers at all levels of management with the necessary information about the status of each of the main functional areas, such as production, sales, finance, etc. At the same time, it can also be a local system that generates data for a limited circle of managers (for example, a performance indicator system for the Chief Engineer’s service) or within a limited functional area (for example, operational accounting of production or financial performance indicators).

Fig.2.2. Construction of a management accounting system in a specific organization.

The second feature of management accounting - efficiency - is due to the fact that information for the needs of decision-making and control will be useful only if it is transmitted to users in a timely manner. When building complex management accounting systems covering all levels of management, the requirement for efficiency dictates the need to automate accounting procedures, since manual data processing does not allow for timely receipt of information.

An efficient management accounting system must include the following basic elements:

· centers (areas) of responsibility;

· controlled indicators;

· primary management accounting documents;

· accounting registers for data grouping;

· management reporting forms;

· accounting procedures for collecting, processing and presenting information to users.

Organizing accounting by responsibility centers allows you to measure the performance of line managers, quickly monitor deviations of actual indicator values ​​from target values ​​and identify their causes (deviation management). By the center of responsibility we mean the officials of the organization to whom the authority and responsibility for performing certain management functions are delegated and for whom target values ​​of controlled indicators are set. For example, when building management accounting in the field of finance, centers of responsibility for income and costs, profits and investments can be identified. If the management accounting system is limited to a separate structural unit of the enterprise, then the centers of responsibility can be identified based on the results of the decomposition of functional areas of activity. For example, in the service of the Chief Engineer at an industrial enterprise, centers of responsibility for achieving target indicators in such areas as: technological support may be allocated; industrial safety and ecology; equipment maintenance and repair; technical development and applied scientific research; providing production with certain resources (electricity, gas, water, etc.).

In order for management accounting data to be generated purposefully, it is necessary to clearly define the composition of controlled indicators by responsibility centers. In this case, the following actions must be performed:

Determining the main purpose of the activities of the organization's divisions that are covered by the management accounting system. The purpose of the unit's activities is determined by the overall (strategic) goal of the organization.

Decomposition of the main goal of an activity into its constituent subgoals and tasks. As a result of decomposition, a set of tasks is obtained, each of which can be associated with a measure of achievement of results (indicator). At the same time, there is also a division of subgoals and tasks by management levels (strategy, plans for implementing the strategy, budgets). Depending on the needs of management, management accounting can generate indicators both for all levels of management and for a specific level of management (for example, accounting for budgetary indicators).

Next, for each task, a set of indicators is determined that reflect the result of its implementation. Practice has shown the advisability of distinguishing two groups of indicators: key and auxiliary. Key indicators evaluate the activity of the enterprise (division, service, etc.) as a whole, that is, they characterize the degree to which the main goal is achieved. Auxiliary indicators reflect the degree of fulfillment of requirements and restrictions on achieving goals. For example, in the functional area “ecology” the level of emissions into the atmosphere can be selected as a key indicator, and deviations from established standards for emissions into the environment can be selected as an auxiliary indicator.

Once a set of benchmarks has been developed, it is necessary to distribute them among the previously identified responsibility centers. At the same time, a correspondence is established between the composition of tasks to be solved within the responsibility center and the measures of the final result of its activities.

The final stage is the determination of target values ​​of control indicators, which is the subject of planning. They can act as indicators reflecting the result of plans (for example, the values ​​of income, costs, profit in financial terms), or act as a starting point for the development of plans. For example, determining the target level of sales profitability serves as the basis for developing an action plan to achieve it. The task of management accounting is to generate factual data on the values ​​of controlled indicators and provide them to interested parties within the organization.

Another important point is the definition of accounting periods, that is, time intervals at the end of which information about the values ​​of controlled indicators becomes available. Obviously, the shorter the accounting periods, the higher the efficiency of management accounting. At the same time, it should be taken into account that the choice of short accounting periods significantly complicates management accounting procedures, increases its labor intensity and puts forward increased demands on the professional training and labor intensity of personnel involved in the accounting process.

The establishment of management accounting in an organization must be initiated by top management, who must first understand their needs for obtaining information for management needs. To set up management accounting, it is advisable to create a working group, the leader of which must have significant authority within the organization, while he is given broad powers in terms of obtaining the necessary information from departments. As a rule, the process of formalizing needs and setting up management accounting occurs with the participation of external consultants, who are also part of the working group.

In the process of establishing management accounting in an organization, it is necessary to solve the following tasks:

· identification of functional areas in which the construction or restructuring of management accounting is expected;

· identifying the elements of internal accounting existing in the organization within the identified functional areas and assessing their adequacy to actually occurring economic processes, as well as the information needs of management;

· development of the concept of management accounting in the organization and an action plan for its construction;

· development of a structure for managers' areas of responsibility;

· determination of the main elements of the management accounting system and their regulation;

· implementation of a management accounting system in an organization and consulting support of the implementation process.

The most important requirement for the effective functioning of the management accounting system in an organization is its regulatory support. In the process of establishing management accounting, a “Regulation on management accounting and reporting” is developed, which should reflect:

· goals and objectives of the management accounting system, basic principles of its construction, basic concepts;

· description of the structure of responsibility centers;

· composition of controlled indicators by responsibility centers and algorithm for their determination;

· forms of primary documents and reporting documents;

· procedures for preparing and processing primary documents;

· management accounting document flow schedule.

After the preparation of the regulations is completed, the stage of implementing the management accounting system begins. Implementation involves training of employees; testing of management accounting procedures on real data from one accounting cycle with the participation of developers; adjustment of regulations based on the results of their trial use; approval of regulations; adaptation of existing or implementation of new automation systems.

Conclusions on the second section

1. Costs are the use of a certain resource to achieve a certain goal. Costs are always associated with a specific object. When analyzing production costs, three-element and two-element cost systems are used. The three-element system consists of direct costs of raw materials, materials and components, direct labor costs and indirect, or general production, costs. The two-element cost system consists of direct costs for raw materials, materials and components, or direct material costs, and conversion costs. Conversion costs are nothing more than the sum of direct labor costs and indirect costs.

2. All divisions of enterprises are structural divisions. Each division is headed by a manager who is responsible for its activities; therefore, each department can be called a responsibility center. Responsibility center managers need information about the activities of the unit reporting to them. In addition to historical information about inputs (costs) and outputs, managers need information about planned future inputs and outputs. When organizing accounting, special attention is paid to cost items that are only partially controlled at this level. Taking this into account, in analytical accounting and reporting costs are divided into two groups: controllable and uncontrollable. Based on current accounting data for each responsibility center, the accountant regularly prepares a performance report. The budget execution report provides an opportunity to evaluate the activities of responsibility centers

3. The main purpose of direct costing is to be the information basis for entrepreneurial decisions. The working tool of direct cost is the analysis of the relationship between production volumes, gross costs (cost) and profit, which we considered in calculating the zero profit point.

4. The approach to organizing an optimal management accounting system at a particular enterprise may be different. The management accounting system may not be in contact with accounting and does not operate with financial indicators. The decision on the configuration of the management accounting system must be made by the head of the organization, based on the existing information needs for management needs and the available resources that can be used to build an internal information system.

CONCLUSION

In the process of working on the course topic, conclusions and generalizations were made according to the main structural sections of the work.

1. Theoretical and methodological foundations for studying the content and specifics of management accounting made it possible to determine its characteristic features

The increasing complexity of business and the need to make management decisions in a dynamic and difficult-to-predict environment have led to the process of transforming traditional accounting into a system for processing and analyzing financial information. In order for a business to develop and withstand competition, the manager must have a complete and clear picture of the financial activities of the enterprise. Management is impossible without information or a set of information about the state of the managed system, control actions and the external environment. Management accounting is a field of knowledge and field of activity related to the formation and use of economic information for management within an economic entity (enterprise, firm, bank, etc.). Its goal is to help managers (managers) make economically sound decisions; the main objectives of the organization of management accounting are orientation towards achieving a predetermined goal of entrepreneurship, the need to provide alternative options for solving the problem, participation in the selection of the optimal option and in the calculation of its normative parameters execution, focus on identifying deviations from specified performance parameters, interpretation of identified deviations and their analysis.

According to the intended purpose, management accounting systems can be divided into strategic accounting for top management of enterprises, companies, firms and current accounting for internal management. An integral part of this type of accounting is the operational diagnostics of the financial and economic activities of the enterprise.

Management accounting has Western roots and is a new thing in our country. But in the West, this area of ​​practical knowledge has evolved for quite a long time. In the national economy, management accounting has been used for less than a decade.

2. It is impossible to present all areas of analysis in management accounting aimed at solving the problems of a particular organization within the framework of a course project, so the basic areas used in accounting were chosen - cost analysis, analysis by responsibility centers, direct costing.

When analyzing production costs, three-element and two-element cost systems are used. The three-element system consists of direct costs of raw materials, materials and components, direct labor costs and indirect, or general production, costs. The two-element cost system consists of direct costs for raw materials, materials and components, or direct material costs, and conversion costs. Conversion costs are nothing more than the sum of direct labor costs and indirect costs.

All divisions of enterprises are structural divisions. Responsibility center managers need information about the activities of the unit reporting to them. In addition to historical information about inputs (costs) and outputs, managers need information about planned future inputs and outputs. When organizing accounting, special attention is paid to cost items that are only partially controlled at this level. Taking this into account, in analytical accounting and reporting costs are divided into two groups: controllable and uncontrollable. Based on current accounting data for each responsibility center, the accountant regularly prepares a performance report. The budget execution report provides an opportunity to evaluate the activities of responsibility centers

The main purpose of direct costing is to be the information basis for entrepreneurial decisions. The working tool of direct cost is the analysis of the relationship between production volumes, gross costs (cost) and profit, which we considered in calculating the zero profit point.

The approach to organizing an optimal management accounting system at a particular enterprise may be different. The management accounting system may not be in contact with accounting and does not operate with financial indicators. The decision on the configuration of the management accounting system must be made by the head of the organization, based on the existing information needs for management needs and the available resources that can be used to build an internal information system.

Bibliography

1. Law of Ukraine "On Accounting and Financial Reporting in Ukraine", No. 996-XIV dated July 16, 1999;

2. Adamov N., Concepts, essence and functions of management accounting//Financial newspaper dated 28.05. 2007;

3. Upchurch A. Management accounting: principles and practice. Per. from English / Ed. I'M IN. Sokolova, I.A. Smirnova. – M.: Finance and Statistics, 2002;

4. Golov S.F. Managerial appearance. – K.: Libra, 2003;

5. Drury K. Cost accounting using the standard-cost method. Per. from English Ed. N.D. Eriashvili. – M: Audit, UNITY, 1998;

6. Desyatkina I.V. Management Accounting. A short course of lectures Part 1d. Simferopol, 2006;

7. Ivashkevich V.B. Management accounting. – M: Economist, 2003;

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11. Drury K. Introduction to management and production accounting, M: Williams Publishing House, 2001.

ANNEX 1

Table 2.2.

Criteria for making decisions on the volume and structure of production.

Coverage rate per narrow unit

The selection is made in descending order of the coverage rate per unit of narrow revenge:

wj = рj – rpj / vj: tEj; (j= 1,…,n)

MD =

Appendix 2

Table 2.3.

Criteria for making decisions on the lower price limit.

pz = rpz + Δrpz + ΔKRTz / xz

pz = rpz + Δrpz + ΔKRTz / xz +

Pj – kpj / tEj * tEz

Linear programming problem:

xhj ≥xj j = (1,…,m)

xj ≥ 0 j = (1,…,m)

Legend: pj - price for products of the jth type; rpj - standard variable costs for the production of products of the jth type; Rfix - fixed costs; pz - lower limit of the price of the additional contract; rpz - variable costs per unit of production; Δrpz is the increase in variable costs caused by the execution of the contract; ΔKR – additional fixed costs caused by the implementation of an additional contract (per month); Tz is the number of months in which additional fixed costs occur; xi - contract volume; рj - price for products of the jth type, excluded from the production program in order to fulfill an additional contract; rpj - variable cost of products of the jth type; tEj is the bottleneck consumption per unit of excluded product of the jth type; tEz - bottleneck consumption per unit of additional contract; MD - total marginal profit (sum for all types of products); xj is the planned volume of sales of products of type j; Tj is the available volume of the j-th bottleneck; tij is the need for a bottleneck of type i to produce products of type j; xhj is the volume of demand for products of type j.

Rice. 10.2. Stages and procedures for organizing management accounting systems Rice. 10.3. The sequence of accounting for transactions using the order-based costing method Rice. 10.4. Relationships between costing systems and production costing methods Rice. 10.5. Graphic display of break-even point Rice. 10.6. A complete system of budgets for an industrial organization Rice. 10.7. Structure of the management accounting service

After studying this chapter, you will be able to:

know:

Accounting systems of an organization as an economic entity, their main characteristics;

Basic systems and methods of management accounting;

Principles of forming responsibility centers;

be able to:

Calculate and analyze product costs and make informed decisions based on accounting and management accounting data;

Assess the effectiveness of using various accounting systems;

have skills (gain experience):

Application of methods and methods for organizing cost accounting, cost calculation for the purpose of managing business processes and performance results;

Using modern methods of grouping costs by type, place of formation and centers of responsibility, methods for calculating production and sales costs, taking into account the characteristics of various types of activities;

Organization of management accounting at the enterprise, monitoring the results of the activities of its responsibility centers.

After studying this chapter, you will have:

The ability to take into account the consequences of management decisions and actions from a position of social responsibility (OK-20);

Powers and responsibilities based on their delegation (PC-2);

Willingness to develop control procedures and methods (PC-3);

The ability to assess the conditions and consequences of organizational and management decisions (PC-8);

Ability to have an economic way of thinking (in terms of perceiving the economy of an organization through its accounting system) (PC-26);

The ability to evaluate the effectiveness of using various cost accounting and distribution systems;

Have skills in calculating and analyzing product costs and the ability to make informed management decisions based on management accounting data (PC-41).

In modern market conditions, the competitiveness and efficiency of each economic entity largely depends on the timely adoption of management decisions on changes in output volumes, assortment and quality of products, and its pricing policy. The most important tasks of modern management practice are the development and implementation of decisions aimed at achieving financial and economic sustainability and the efficiency of the organization. The independence of economic entities implies high responsibility for management decisions made. The uncertainty of the external environment, its dynamism and instability entail many risks for the organization, which increases the role of economic information in management decision-making and justifies the stringency of the requirements for the organization's information system.

In modern conditions, in the information field of an organization, there are, as a rule, four accounting systems, the purpose of which is to satisfy the information needs of users of economic information at different levels (Fig. 10.1
).

As can be seen from the figure, in Western countries, including the United States, the accounting system includes four types of accounting. In our country, the economic accounting system also includes four types of accounting, each of which performs its own specific functions and forms a corresponding block of information. Information generated in the accounting system that has developed in our country can be divided into four main categories:

• information necessary for the operational management of the organization;
• information reflecting the current financial condition of the organization;
• information necessary for generalization within a region, industry or country as a whole;
• information generated for tax purposes.

All types of accounting that make up the organization's accounting system are suppliers of a variety of information necessary for decision-making. At the center of information flows in Russian organizations is the accounting system, since it allows one to generate information about the real state of affairs of an economic entity. In modern conditions of economic development, the role of reporting data as a source of reliable and objective information about the results of financial and economic activities is significantly increasing.

The information necessary for the operational management of an organization is used by managers at various levels to ensure current and operational resource management (microeconomics). The most significant data in this system are data on the amount of costs for production and sales of products, the cost per unit of production, the ratio of the volume of products sold, its cost and profit, the amount of expected income and expenses as a result of the implementation of planned contracts, transactions, investments, and forecasting. level of profitability of new types of products. This information flow is formed within the framework of so-called management accounting. Internal economic information contains trade secrets, its volume for managers at various levels is limited by the scope of their direct competence, and access to various types of accounting information is regulated by the performance of functional duties by managers.

Let's consider the features of each type of accounting included in the Western accounting system.

Financial accounting performs the functions of system accounting, built in accordance with the principles and norms of international standards. The objective of financial accounting is to prepare financial statements that can be used by both external and internal users. At the same time, external users of accounting information can be share owners and creditors (both real and potential), suppliers, buyers, representatives of tax services, etc.

Tax accounting provides the organization with information on the correct and full use of tax benefits and determines the choice of accounting policies. Depending on the accounting and asset valuation methods chosen in it, different balance sheet and reporting indicators are formed. To improve performance indicators, the organization strives to minimize the total amount of tax payments within the framework of the law.

Each organization in the conditions of market relations obviously needs analytical operational information that characterizes the rational use of production resources, the feasibility of investing in them, and the profitability of the organization’s economic and financial activities. These problems can be solved using management accounting, as evidenced by current practice in economically developed countries.

The management accounting system uses all types of information that is collected, measured, processed and transmitted for internal use to management and those managers who can develop and make informed management decisions.

Management Accounting is a system for generating information intended for making management decisions aimed at achieving the goals of the entire organization. The development of management accounting is associated with the complication of the structure of organizations, diversification of products, and the need to maintain trade secrets about costs and profits in a competitive environment.

According to Western and some Russian experts, management accounting is a logical continuation of the development of accounting (financial) accounting and its evolution. However, this statement is not indisputable, since these two accounting systems face different tasks in many respects, which determines the differences between accounting (financial) and management accounting, the main of which are presented in the form of comparative characteristics of accounting (financial) and management accounting in Appendix 11.

From an accounting point of view, management and other types of accounting are based on almost the same array of primary data, but they represent their different interpretation and embodiment in different final information. However, management accounting must be future-oriented, i.e. provide the ability to predict the future state based on previously identified information.

Taking into account the above, consider the organization’s accounting system as multi-level structure.

At the first, basic level there are: accounting, operational, financial accounting.

At the second level - tax and statistical accounting.

At the third level - management accounting.

The primary flow of information falls into accounting, operational and financial accounting. At the tax and statistical levels, summary information is processed according to rules defined by law (accounting regulations, tax code of the Russian Federation, international accounting rules, etc.) and transmitted external users(shareholders, creditors, government and tax regulatory authorities, etc.). Information from the first and second levels, determined by internal regulations (orders, methods, etc.), is transferred to the next level of management accounting. At this level, information is analyzed and transmitted in a certain form internal users(managers at different levels, founders, participants and owners of the organization’s property). Information at the stage of management accounting must have the property of relevance, i.e. information, passing through the management accounting system, is processed in a certain way, transformed and takes on the necessary and predetermined form.

In the modern economy, it is obvious that modern economic relations and the mechanism of market relations are becoming more complex, the emergence of new market instruments, methods and means of managing economic and financial activities, which together created the need for additional information to ensure the successful functioning of the organization in these conditions. Significant changes have occurred in technology, technology and production organization. More varieties of the product, methods of its manufacture, and options for combining them have appeared. Costs and, in many respects, the results of activities now depend not so much on the individual efforts and skills of a person, but on the technical level of production, the productivity of the machines and equipment used. The number of options for solving emerging problems has increased, and the cost of an incorrect management decision has increased.

It is obvious that internal (in-house) management requires a new system for generating information for analysis, selection and justification of such decisions. There was a need to reorient the main goal of economic accounting to meet internal needs. The expansion of the range of activities has created a need for additional information.

Management accounting is sometimes called internal accounting, which includes a system production accounting. Production accounting involves a system of collecting, registering, summarizing and processing information on production costs, systematized according to certain criteria, monitoring their condition and calculating the cost of production. The formation of indicators of the production and economic activity of an organization in the management accounting system is a trade secret of the organization, a secret of the company.

If accounting is considered as a whole, from a functional perspective, then accounting is a production management function, consisting in receiving, registering, accumulating, processing information about the real facts of economic activity, their results, resources used, etc. Such information is necessary for government bodies at all levels to make informed decisions. The result of organizing management accounting should be the ability to obtain information about the state of each business process at any time in real time. In this case, the managerial accounting operator acts as the subject of management accounting, and accounting information acts as the object.

Thus, management accounting is a system for generating certain information and using it within an enterprise to make management decisions.

At the same time, it is important to understand that it is in this sense, that is, in the sense of a certain system for collecting and processing information, that the word “accounting” should be used in relation to this activity. The information collected by the management accounting system cannot be delivered by accounting (financial) accounting, since it has completely different goals and objectives.

Management accounting is the link between the accounting process and enterprise management.

Within the framework of management accounting, standardization, planning, control of the organization’s production activities, evaluation of achieved results and development of recommendations for the future are carried out.

Management accounting is an independent direction of economic accounting of an organization, which provides its management apparatus with information used for planning, control, and evaluation of the organization as a whole and its structural divisions.

Inventory is one of the important factors affecting production efficiency. The stock norm is the minimum amount of material resources that must be in enterprises or organizations for a normal supply process. And for the purpose of scientifically based organization of supplying production with the necessary material resources, production reserves at enterprises are created in a planned manner, and their standardized quantity is determined by calculation within the limits of need to ensure the rhythmic functioning of the enterprise.

Accordingly, planning - the professional activity of drawing up cost estimates, monitoring their implementation, and measuring performance results - is necessary for any organization, no matter in what area it exists. Any organization, regardless of its legal form, form of ownership and type of activity, requires qualified management of human, material and financial resources. The creation of an effective mechanism for such management is greatly facilitated by the organization of management accounting.

Another important point when determining the essence of management accounting is analyticality of information. In the management accounting system, information is collected, grouped, identified, studied, i.e. analyzed in order to develop the most appropriate management decision for the organization at the moment. For example, the efficiency of production activities can be determined using management (in particular, production) accounting data by comparing actual and standard costs and results from expenses incurred.

Establishing the essence of management accounting is facilitated by considering a set of features that characterize it as an integral information and control system of an enterprise: continuity, purposefulness, completeness of information support, the use of objective economic laws, the impact on management objects under changing external and internal conditions.

Thus, management accounting is an integral part of the enterprise management system. It is designed to provide the process of generating information for:

• monitoring the efficiency of the organization’s current activities as a whole and in the context of its individual divisions, types of activities, and market sectors;
• planning future strategy and tactics for carrying out economic and financial activities in general and individual business operations, optimizing the use of material, labor and financial resources of the organization;
• measuring and assessing business efficiency in general and by division of the organization, calculating the level of profitability of individual types of products, works, services, sectors and market segments;
• adjusting management decisions made during the process of production and sales of products, goods and services, reducing subjectivity in the decision-making process at all levels of management.

Main principles of management accounting:

1) orientation towards achieving the task,

2) the need to provide alternative solutions to it,

3) participation in the calculation of regulatory parameters of the optimal option and in monitoring its implementation,

4) focus on identifying deviations from specified performance parameters,

5) interpretation of identified deviations and their analysis.

It is also necessary to observe the general principles of generating information for management:

The principle of advancing data for making management decisions,

The principle of responsibility for its consequences.

At the same time, 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 business results at all levels of management, maintaining management accounting does not make much sense.

One of the requirements of international management accounting standards is its integrity and clarity. Management accounting must be systematic even when it is maintained without the use of primary documents, a system of accounts and double entry. Consistency in this case means the unity of principles for reflecting accounting information, the interrelation of accounting registers and internal reporting, ensuring, if necessary, the coordination of its data with accounting and reporting indicators.

The clarity of management accounting information is ensured by reflecting the results of analysis of the obtained indicators in accounting registers, presenting data in the form of analytical tables, graphs, etc. Data from well-organized management accounting make it possible to identify areas of greatest risk, bottlenecks in the organization’s activities, ineffective or unprofitable types of products and services, and methods for their implementation. They are used to determine the most profitable range of products and works for given conditions, prices and tariffs for their sale, discount limits under different sales and payment conditions to assess the effectiveness of additional costs and the rationality of capital investments. Only according to management accounting data can you choose the best option for solving various production and management problems.

Information is information about persons, objects, facts, events, phenomena and processes that expand the understanding of the object of study. Management accounting information in practice, it often comes down to identifying deviations of actual indicators from calculated ones, not only in relation to the amount of production costs, but also to deviations in stock standards, prices, payment terms, etc. Based on information about deviations, measures are taken to eliminate the causes that cause actual production costs to exceed standard costs, loss of profit and property.

The following are used in management accounting: types of information:

Quantitative and non-quantitative;

Accounting and non-accounting;

Complete and incomplete.

The following requirements apply to management accounting information:

Targeting (to specific recipients in accordance with their level of preparedness and hierarchy);

Efficiency (within a time frame that allows you to get your bearings and make management decisions);

Sufficiency (to the extent necessary for a management decision);

Analyticity (must contain express analysis data);

Flexibility and initiative (ensuring completeness of information in changing management situations);

Usefulness (draw attention to areas of potential risk);

Sufficient efficiency (the costs of collecting and processing information should not exceed the economic effect of its use).

Management accounting information is confidential and requires protection, which includes:

• a clear division of personnel with assigned powers depending on the tasks being solved (the problem of premises);
• restricting access of employees and unauthorized persons;
• strict restriction of access to information;
• increased requirements for employees to ensure the safety of information.

Production information used in a number of management accounting procedures only as an information base for calculating indicators, standards and financial estimates. Accounting data should not be detrimental to management activities, but should be useful to them. Managers use accounting information as an information base when solving problems of managing an organization.

From the point of view of setting up management accounting in an organization, it is necessary to emphasize its universality. Management accounting can be introduced at all enterprises and organizations that have costs and inventories in warehouses, and during their movement through the stages of the production cycle to the finished product warehouse. They include raw materials, as a product of extractive industries, agriculture; materials that have undergone pre-processing both at the enterprise itself and at others (semi-finished products - blanks, forgings, castings, parts, assemblies, etc.); labor resources - the mass of living labor that the enterprise currently has, the use of labor resources in the process of purposeful activities and the result of labor.

Management accounting data is primarily intended for the administration of the organization - management personnel, managers, executives. For each of them, the composition of information is determined depending on the functions it performs and the position it occupies. For managers, for example, the most important information is the amount and rate of profit, adequacy of funds, cost and profitability of individual products.

The subject of management accounting is the production activities of the organization and its individual structural divisions (segments), called responsibility centers.

In management accounting, as a rule, there are four types of responsibility centers:

Cost centers;

Revenue Centers;

Profit centers;

Investment centers.

This classification is based on the criterion of financial responsibility of managers, the breadth of their powers and the completeness of the responsibility assigned to them.

A cost center is a structural unit of an organization in which it is possible to organize standardization, planning and accounting of production costs in order to monitor, control and manage the costs of production resources, as well as evaluate their use. The manager has the least amount of managerial authority. He is only responsible for the costs incurred. The management accounting system measures and records input costs to the responsibility center. The work of the cost center is carried out in two directions:

• obtaining the maximum result at a certain specified level of investment.
• the investments required to achieve a given result are brought to a minimum level.

A revenue center is a structural unit of an organization whose manager is responsible for generating revenue, but is not responsible for costs. The activities of the head of this center are assessed on the basis of earned income, therefore, the management task in this area is to record the results of the center’s activities at the output. The goals of the revenue center are to remain competitive and generate profits.

A profit center is a structural unit of an organization, the head and managers of which are simultaneously responsible for both income and costs. He makes decisions both on the amount of resources consumed and the amount of expected revenue.

The goal of a profit center is to obtain maximum profit through the optimal combination of parameters of invested resources, volume of products, their quality and price. The efficiency of the center is assessed by the economic indicator - profit. Profit growth is stimulated by the correct selection of indicators characterizing the business activity of the division.

Investment Center- a structural unit of an organization, whose managers not only control the costs and income of their divisions, but also monitor the effectiveness of the use of funds invested in them. They have the right to make investment decisions regarding individual projects. The head of the center has the greatest authority in management and bears the highest responsibility for decisions made.

Objects of management accounting:

Costs of the organization (current and capital) and its divisions (financial responsibility centers);

Results of the activity of the enterprise as a whole and centers of financial responsibility;

Internal pricing, which involves the use of transfer prices;

Budgeting;

Internal reporting.

Methods used in management accounting:

Elements of the accounting (financial) accounting method (accounts and double entry, inventory and documentation, balance sheet summary, reporting) - are presented in Chapter 1 of the textbook;

Index method (statistics);

Techniques of economic analysis (factor analysis);

Mathematical methods (correlation, linear programming, least squares method).

Economic isolation and independence of organizations objectively contributes to the complication of their orientation in the system of economic relations and increasing importance control functions organization. The implementation of this function is ensured by management accounting, the task of which is to compile internal reports. As already noted, the information presented in them is intended both for the owners of the organization and its managers, i.e. for internal users. These reports contain information not only and not so much about the general financial position of the enterprise, but also about the state of affairs directly in the production area. The content of reports varies depending on their purpose and the level of the manager requesting a particular report.

Management Accounting Concepts:

1) fundamental concept - a reliable and conscientious reflection of the facts of economic life, compliance of information with the actual state of affairs in the organization;

2) the basic concept of management accounting is the priority of content over form, which proclaims the priority of economic content over legal form when including various types of information in the accounting system.

In accordance with these concepts, accounting principles(Table 10.1).

Name of the principle

Table 10.1

Principles of management accounting

480 rub. | 150 UAH | $7.5 ", MOUSEOFF, FGCOLOR, "#FFFFCC",BGCOLOR, "#393939");" onMouseOut="return nd();"> Dissertation - 480 RUR, delivery 10 minutes, around the clock, seven days a week and holidays

Meirieva Madina Ayupovna. Development of methodological support for accounting and analysis of human resources of a commercial organization: strategic aspect: strategic aspect: dis. ...cand. econ. Sciences: 08.00.12 Rostov n/d, 2006 303 p. RSL OD, 61:07-8/1111

Introduction

CHAPTER 1. THEORETICAL AND METHODOLOGICAL ASPECTS OF ACCOUNTING HUMAN RESOURCES OF A COMMERCIAL ORGANIZATION 15

1.1. Human resources as an accounting object 15

1.2.Methodological aspects of accounting of human resources and the concept of reflecting them in the financial statements of a commercial organization 31

1.3. Features of the organization of management accounting of human resources 47

CHAPTER 2. DEVELOPMENT OF METHODOLOGICAL SUPPORT FOR ANALYSIS OF HUMAN RESOURCES OF A COMMERCIAL ORGANIZATION 63

2.1. Study of the current state of methodological support for analyzing the use of human resources of a commercial organization 63

2.2. Features of human resource analysis at oil producing and oil refining enterprises 77

2.3. Research on the development of methods for strategic analysis of human resources abroad 93

CHAPTER 3. IMPROVEMENT OF METHODOLOGICAL SUPPORT FOR ACCOUNTING AND ANALYSIS OF HUMAN RESOURCES 108

3.1. Strategic management accounting as a basis for human resource management 108

3.2. Improving the methodology for strategic management accounting of human resources 125

3.3 Development of methods for strategic analysis of human resources 139

CONCLUSION 157

REFERENCES 166

APPENDIX 189

Introduction to the work

High-quality economic control involves the effective management of the economic resources of a commercial organization based on data generated in the accounting system. The modern business organization is now viewed as more than just the amount of money invested in the business. Human resources, the policy of a commercial organization in the labor market and accumulated knowledge are becoming increasingly important. This is feasible through the interaction of such management functions as accounting, control, analysis, regulation, and human resource planning.

In strategic management, the concept of human resource management (HRM), which arose in the 80s of the 20th century and was transformed into the concept of strategic human resource management, has become widespread. The traditional human resource management system does not fully contribute to their optimization and the efficiency of economic entities. In this regard, the issues of improving the methods of accounting and analysis of human resources focused on making management decisions in this area are being updated.

Accounting data serves as the basis for making management decisions on human resource management. In turn, the strategy and tactics of human resource management put forward requirements for the formation of accounting information in the necessary sections and perspectives. In this regard, the development of new non-traditional systems for accounting and human resource management, the study of problems of increasing quality characteristics and the analytical nature of information about them is one of the pressing problems of theory and practice.

Human resource accounting has its own methodological basis, which is the theory of human and intellectual capital. For the development of the theory of human capital, T. Schultz in 1979 and G. Becker in 1992 were awarded the Nobel Prize. Due to the importance and relevance of problems related to human resources, the American Accounting Association (AAA) created the Committee on Human Resource Accounting (Committee on Human Resource Accounting). In 1973, this committee defined Human resource accounting (HRA) as “the process of identifying and evaluating human resource data and then communicating the resulting information to interested parties.”

The Work Institute in America (WIA) defines human resource accounting as: “the development of a theoretical framework that explains the nature and determinants of the value of people from the perspective of formal organizations; developing valid and reliable methods for assessing the value and value of people to organizations; designing organizational support for the implementation of the proposed assessment methods.”

There are three approaches to human resource accounting:

Cost approach (cost accounting);

Value approach (taking into account the effect);

Cost-value.

However, in the context of the concept of strategic human resource management, human resource accounting is a much broader concept that is not limited to labor and wage accounting. More and more scientists are inclined to think about the need to consider human resources as an asset, and not as an expense.

Costs of hiring labor, costs of education, training and retraining of personnel, wages are reflected in accounting. In most cases, these expenses are considered as operating expenses. However, Japanese and German companies view personnel costs as long-term investments that bring high returns.

The need to solve methodological issues of accounting and analysis of human resources, insufficient practical development of issues of accounting and analysis of human resources of a modern commercial organization determined the special significance and relevance of the study.

The following domestic authors made a significant contribution to the study of the problems of methodology for accounting for human resources of commercial organizations: Bezrukikh P.S., Bogataya I.N., Breslavtseva N.A., Bakhrushina M.A., Vorobyova.E.V., Geits I.V. , Kerimov V.E., Karpova T.P., Kondrakov N.P., Kuter M.I., Labyntsev N.T., Nikolaeva S.A., Paliy V.F., Sokolov Ya.V., Tkach V.I., Khakhonova.N.N., Sheremet A.D. and others.

Issues of human resource analysis are reflected in the works of such scientists as Barngolts S.A., Boronenkova S.A., Vesnin V.R., Efremova V.S., Kovalev V.V., Markaryan E.A., Milovidov K.N., Ripol -Zaragosi F.B., Fatkhutdinova R.A. and others.

Among foreign authors, research and development should be highlighted by Aaker D., Bernstein L.A., Van Breda M.F., Van Horn J.C., Damari R., Drury K., Matthews M.R., Needles B., Ryan B., Perera M.H.B., Richard J., Stone D., Ward K., Helfert E., Hendriksen E., et al.

The Russian Federation uses a cost-based approach and accounting for human resources, which is not fully organized compared to foreign countries such as America, Japan, Great Britain, etc. Currently, human resources are reflected indirectly in accounting. Analytical accounting data makes it possible to estimate the number of human resources in a commercial organization, wages in the context of each employee, as well as his contribution to economic activity in the form of time worked and data on the production of products (works, services). In the balance sheet, data on human resources is reflected in the form of labor costs - in the asset balance sheet and the organization's accounts payable to personnel - in the liability side. Form No. 2 “Profit and Loss Statement” reflects data on the cost of products, works, services, one of the elements of which is labor costs.

Human resources are an organization's most valuable assets, namely the people who individually and collectively contribute to achieving organizational goals. A new approach to considering human resources as an object of strategic management accounting is that they are considered as intangible assets, and the process of their use is reflected using cost accounts and depreciation accounts.

Issues of accounting and analysis of human resources in Russian conditions, despite the accumulated foreign and domestic theoretical and practical potential, the problems of developing methods of accounting and analysis of human resources have not been sufficiently studied, which necessitates further scientific research in this direction.

The relevance of this problem, its scientific and practical significance and, at the same time, insufficient development in Russian conditions, determined the choice of the topic of the dissertation research, its purpose and objectives.

Purpose and objectives of the study. The purpose of the work is to develop approaches to improve the accounting and analysis of human resources of commercial organizations. The set goal determined the feasibility of solving the following tasks:

evaluate existing methodological approaches to strategic management accounting of human resources and justify directions for their improvement;

explore the development of methodological support for the analysis of human resources of a commercial organization;

develop new approaches to improving the accounting and analysis of human resources of a commercial organization.

Object and subject of research. The subject of the study is the methodology of strategic management accounting and human resource analysis. Business operations carried out in commercial organizations related to human resources were chosen as the object of study. The object of practical implementation of the research was OJSC Ingushneftegazprom, as well as its branches BSDU Malgobekneft and Karabulak OGDP.

The theoretical and methodological basis was provided by studies that make up the conceptual provisions of economic teachings and accounting of various directions on the problem under study, legislative acts, regulatory materials and intra-industry recommendations.

The research was carried out within the framework of the Passport of the specialty of the Higher Attestation Commission 08.00.12 - accounting, statistics, section 1 Accounting and economic analysis, clause 1.8. Accounting in organizations of various organizational and legal forms, all spheres and industries, clause 1.9 Investment, financial and management analysis.

Instrumental and methodological apparatus. To solve the problems, analysis and synthesis, inductive and deductive methods, methods of comparative analysis, vertical, horizontal, coefficient analysis, data grouping, balance methods, factor analysis, logical and systematic approaches, observation, dialectical, statistical, used by the world were used as tools. science in the knowledge of socio-economic phenomena and allowing the most complete study of the problems under study.

The information and empirical base was formed on the basis of legislative acts and regulations regulating the organization of accounting of human resources in commercial organizations of the Russian Federation, legislative and industry (departmental) regulations, methodological recommendations and instructions specifying accounting standards in accordance with industry and other features, international accounting and reporting standards, materials from periodicals, monographic studies by domestic and foreign economists, data from an analytical study conducted by the applicant based on the accounting data of OJSC Ingushneftegazprom.

Working hypothesis. The modern model of competitiveness of a commercial organization is based on the principle of effective use, preservation and development of human resources, without well-established accounting of which it is impossible to develop and successfully implement strategies in this area, while we propose to consider human resources as intangible assets, and reflect the process of their use with using cost accounts and depreciation accounts, and not as expenses, while expenses for hiring labor, education, training and retraining of personnel, wages - as long-term investments that bring high profits.

Main provisions submitted for defense:

1. To make management decisions when implementing the organization’s strategy, the methods of accounting and analysis of human resources must be adequate to it. The directions we propose for improving the accounting and analysis of human resources involve the organization of strategic management accounting and strategic analysis of human resources at enterprises. As part of the accounting and analytical support for human resource management of an organization, which includes a methodology for accounting for human resources, concepts for reflecting human resources in accounting and reporting, a system for monitoring the external and internal environment of the organization and methodological support, methods and techniques for analyzing human resources, relevant information is generated about human resources, necessary for both external and internal users of financial statements.

2. Human resources are the most valuable assets of a commercial organization. A new approach to the study of human resources as an object of strategic management accounting is that they are considered as intangible assets, and the process of their use is reflected using cost accounts and depreciation accounts. As experience shows, commercial organizations that make significant investments in education and professional training of personnel become the most competitive, which ultimately leads to increased labor productivity and an improved quality of life. Human resource accounting can provide valuable information, contribute to the fulfillment of the function of social accountability of firms to employees, and allow monitoring changes in the quantitative and qualitative parameters of human resources (human capital) in the economy at both the micro and macro levels.

3. Strategic analysis of human resources is carried out in two directions: study of the internal environment of the organization, i.e. internal analysis and study of the organization’s external environment, i.e. external strategic analysis, providing for the creation of a monitoring system for various factors. When conducting external strategic analysis, it is necessary to study the influence of a group of factors: political and legal, economic, sociocultural, technological. Internal strategic analysis of human resources involves analyzing the competitiveness of personnel, studying the costs of human resources; the existing incentive system, its compliance with the strategic objectives of a commercial organization, analysis of the state and effectiveness of actions to search, attract and select the necessary employees, the effectiveness of work on primary training, advanced training and personnel development, study of the state of training, retraining, advanced training, human resource development, as well as analysis of the strategy and adequacy of the human resources of a commercial organization to the tasks of its effective implementation.

4. It is advisable to improve the methodology for analyzing human resources on the basis of conducting strategic analysis in a commercial organization. The essence of the methodology is that the environment of a commercial organization, the competitiveness of personnel are studied, the organization of human resource management is assessed, the strategy and adequacy of the human resources of a commercial organization to the tasks of its effective implementation are analyzed, and personnel work, remuneration and motivation systems, the state of internal relations in organizations, etc. Strategic analysis of human resources is carried out in the following areas: 1. Analysis of external environmental factors. 2. Analysis of personnel competitiveness 3. Analysis of planned and actual headcount, statistical and analytical structure of human resources, personnel costs. 4. Analysis of the strategy and adequacy of the human resources of a commercial organization to the tasks of its effective implementation.

The scientific novelty of the dissertation research lies in the fact that, from the standpoint of a systems approach, scientific and methodological provisions have been developed and substantiated aimed at improving the methods of accounting and analysis of human resources in the context of changing environmental factors for the implementation of targeted production and financial policies.

The main provisions of the dissertation research, which characterize scientific novelty and are submitted for defense, include the following:

It is proposed to make additions to PBU 14/2000, providing for the possibility of using, as one of the options for accounting for human resources, their reflection in the composition of intangible assets, which will make it possible to take into account human resources.

It is proposed to include additional data in the explanatory note to the annual report to more fully disclose information about human resources to external users of financial statements:

1) in section 3 “Information on affiliated persons” - data on the amount of wages and the amount of expenses aimed at advanced training as part of information on transactions with affiliated persons - members of the board of directors;

2) in section 6 “Events after the reporting date and contingent facts of economic activity” - information on human resources, including: a) a brief description of the event after the reporting date (contingent fact) and an assessment of its consequences in monetary terms on human resources. An event after the reporting date may be recognized as the cessation of a significant part of the organization’s main activities if this could not be foreseen as of the reporting date; b) the amount of the reserve written off in the reporting period in connection with the fulfillment by a commercial organization of a recognized contingent obligation; unused (excessively accrued) amount of the reserve allocated in the reporting period to non-operating income of the organization. A conditional fact of economic activity is the sale and termination of any line of activity, the closure of divisions of the organization or their relocation to another geographical region. Additionally, we propose to disclose information about human resources. Including the amount of the reserve formed in connection with the consequences of the contingent fact at the beginning and end of the reporting period;

3) in section 7 “Data on the most important reporting indicators by type of activity and geographic markets” - information on human resource costs, including wage costs and personnel training costs as part of information from operating segments;

4) in section 10 “Dynamics of the most important reporting indicators and the procedure for calculating analytical coefficients” - additional analytical information about human resources for external users of financial statements, in particular, the coefficient of employee qualifications, the coefficient of use of employee qualifications, the coefficient of use of employee specialization, the coefficient of length of service In the organisation.

An in-house regulation on strategic management accounting of human resources of a commercial organization has been developed, which includes the following sections: General provisions; Human resource assessment; Depreciation of human resources; Accounting disclosures that enable human resources to be included in strategic management accounting.

It is proposed to use management accounting accounts 31-33 to reflect human resource costs: account 31 - “Costs of acquiring human resources”, which includes the costs of hiring personnel and wages; account 32 - “Unified social tax”; account 33 - “Training costs”, which includes the costs of a commercial organization for training and retraining of personnel.

A methodology for strategic analysis of human resources has been developed and tested using the example of OJSC Ingushneftegazprom, the essence of which is that the environment of a commercial organization is studied, the competitiveness of personnel, strategies and the adequacy of the organization’s human resources to the tasks of its effective implementation are analyzed, the organization of human resource management is assessed, and also personnel work, remuneration and motivation systems, the state of internal relations, etc. Strategic analysis of human resources is carried out in the following stages: 1. Analysis of external environmental factors. 2. Analysis of personnel competitiveness 3. Analysis of the planned and actual number and statistical and analytical structure of human resources and personnel costs. 4. Analysis of the strategy and adequacy of the human resources of a commercial organization to the tasks of its effective implementation.

The practical significance of the study lies in the fact that its theoretical and methodological results have been brought to practical conclusions and recommendations used in the economic practice of a number of commercial organizations of the Republic of Ingushetia. The following developments can be applied in the economic activities of organizations:

Refined scheme for accounting wages of human resources;

An updated schedule of document flow for personnel records, use of working time and settlements with personnel for wages;

An approach to organizing management accounting of human resources in a commercial organization, allowing for the creation of an integrated system of financial, management and tax accounting;

Methodology for strategic analysis of human resources, taking into account the specifics of the activities of oil producing and oil refining enterprises.

Approbation of research results. The main provisions of the dissertation research were presented at interregional, interuniversity scientific and practical conferences held in 2002-2006. The conclusions and results of the dissertation work are used in teaching the disciplines “Accounting (Financial) Reporting”, “International Financial Reporting Standards”, “Economic Analysis in Industries”, “Accounting (Financial) Accounting” to students of Ingush State University. The results obtained are used in the process of training professional accountants at the Institutional State University Center for Advanced Studies, and can also be used in the system of certification, training and retraining of auditors. The main results of the study were implemented at the enterprises of the oil production and oil refining industry of the Republic of Ingushetia: OJSC Ingushneftegazprom, NGDU Malgobekneft, Karabulak OGDP. The author published 6 works with a total volume of 20.16 pp.

Logical structure and scope of the dissertation. The dissertation consists of an introduction, 3 chapters, a conclusion, and a bibliography including 266 sources. The work contains 12 figures, 28 tables, 17 formulas and 43 appendices.

Human resources as an accounting object

Thus, we are talking, on the one hand, about taking into account a number of indicators reflected in accounting indirectly (for example, the number of employees, the amount of time they worked, the amount of work performed1), and on the other hand, about reflecting in the accounting of labor costs and payables labor, the budget for personal income tax, extra-budgetary funds, etc.

In this case, the objects of accounting are deferred expenses and work in progress.

With the advent of a highly qualified and educated workforce, as well as in connection with the growth of reorganization procedures such as mergers and acquisitions, the issues of human resource accounting and their assessment are becoming more relevant. Accounting data serves as the basis for making management decisions on human resource management. In turn, the strategy and tactics of human resource management put forward requirements for the formation of accounting information in the necessary sections and perspectives. In strategic management, the concept of human resource management (HRM), which arose in the 80s of the 20th century and was transformed into the concept of strategic HRM, has become widespread. A comparative analysis of various scientists' interpretations of the concept of human resource management and the concept of strategic human resource management was carried out by us in Appendices 1-2). “Strategic human resource management” is understood as: “actions that influence the behavior of individual employees in the process of formulating and satisfying the strategic needs of the organization.” There is an interpretation according to which strategic human resource management is understood as a sustainable scheme for the planned use of human resources and actions aimed at ensuring that the company achieves its goals. All this requires the development of new approaches to accounting for human resources in accordance with the concept of strategic management.

The main emphasis in the management of foreign oil and gas companies is on the efficient use of any resources and, first of all, human ones. The raw material orientation of the economy and the seemingly endless abundance of natural resources have instilled in us the habit of believing that our resources are inexhaustible and no effort is required to make their use more efficient. Human resources, like any other, are perceived in Russia as something that can be used endlessly without thinking about their improvement and development. At the same time, the ability of a commercial organization to flexibly and effectively respond to changes in the environment and constantly transform in accordance with them comes to the fore. The competitiveness of a commercial organization in the long term is largely determined by well-trained, qualified and motivated personnel.

According to R. Shagiev and N. Dyakova, the modern model of competitiveness of an oil and gas corporation is based on the principle of effective use, preservation and development of human resources.

Accounting is one of the most important functions of the management process. Without well-established accounting of human resources, it is impossible to develop and successfully implement strategies in this area. Accounting for employees of organizations and wages is an integral part of the accounting system of any modern commercial organization. However, in the context of the concept of strategic HRM, human resource accounting is a much broader concept that is not limited to labor and wage accounting. More and more scientists are inclined to think about the need to consider human resources as an asset, and not as an expense.

Due to the importance and relevance of problems related to human resources, the American Accounting Association (AAA) created the Committee on Human Resource Accounting. In 1973, this committee defined "Human resource accounting (HRA)" as "the process of identifying and evaluating human resource data and then communicating the resulting information to interested parties." American Institute of Labor (Work Institute in America, WIA),

Study of the current state of methodological support for analyzing the use of human resources of a commercial organization

The versatility and diversity of economic and production situations pose many autonomous tasks for the analysis of labor indicators. They can be solved using general and specific analytical techniques. To improve existing methods and identify advantages and disadvantages, it is necessary to conduct a comparative analysis of them.

Considering the place of human resources in the system of economic relations, it should be noted that different authors have different points of view on the system of indicators of human resources.

For example, Savitskaya G.V. determines that the volume and timeliness of all work, the efficiency of using equipment, machines, mechanisms and, as a result, the volume of production, its cost, profit and a number of other economic indicators depend on the enterprise’s supply of labor resources and the efficiency of their use. The main objectives of the analysis are to study and assess the provision of the enterprise and its structural divisions with labor resources as a whole, as well as by category and profession; determination and study of staff turnover indicators; identification of labor resource reserves and their more complete and effective use.

Professor Baronenkova S.A. determines that labor and wage analysis is focused on solving such management goals as organizing the recruitment of labor; personnel training; proper organization of work; planning of working time balance; organizing the fight against lost working time; labor standardization, control over deviations from norms; organization of wages; rational use and fight against unproductive expenses of the wage fund; labor incentive system; labor productivity, reserves for increasing it; analysis of the relationship between the growth rates of labor productivity and wages; efficient use of labor resources.

Component sections of labor force analysis: analysis of the size and composition of the workforce; analysis of working time use; labor productivity analysis; analysis of wage fund expenditure and wages; analysis of the relationship between the growth rates of labor productivity and wages; reserves for better use of labor and wage fund.

Professor Bakanov M.I. and Sheremet A.D. believe that analysis of the use of labor is an important section of the system of comprehensive economic analysis of the activities of an enterprise. The main tasks of the analysis of both labor and wages include: 1) in the field of use of labor - the study of indicators of the number, dynamics and reasons for the movement of the labor force, composition, structure, qualification level, data on the use of working time, labor intensity of products; determining the influence of the number of workers on the implementation of the production plan; 2) in the field of labor productivity - study of the achieved level of labor productivity, its dynamics; determination of intensive and extensive factors of change in labor productivity; identifying reserves for increasing labor productivity; assessment of the impact of changes in labor productivity on the implementation of the production plan; 3) in the field of use of the wage fund - assessment of the degree of validity of the applied forms and systems of remuneration; determination of the size and dynamics of average wages; research into the effectiveness of existing forms of bonuses; studying the relationship between wage growth rates and labor productivity; identifying reserves for increasing the efficiency of using funds for wages.

We have studied the approaches of various scientists used in the analysis of human resources (Appendix 18).

In the process of analyzing labor indicators, a number of special methods are used. They reflect the specificity of the analysis of labor indicators, reflecting its systemic, comprehensive nature. Systematicity in labor analysis is determined by the fact that labor processes are considered as diverse, internally complex unities, consisting of interconnected parties and elements. In the course of such an analysis, connections between parties and elements are identified and studied, and it is established how these connections, as a result of interaction, lead to the unity of the process being studied in its entirety. The systematic nature of this kind of analysis is also manifested in the combination, in the aggregate, of all specific techniques based on one’s own achievements and the achievements of a number of related sciences (mathematics, statistics, planning, management, etc.).

Currently, in the economic literature and practical activities, the following methods of analyzing labor indicators are distinguished, which can be divided into two groups: traditional and economic-mathematical (Fig. 2.1.1). The first includes those methods that have been used almost since the advent of analysis. Many mathematical methods and techniques entered the circle of analytical developments much later, with the introduction of computers.

Traditional methods for analyzing labor indicators include the use of the comparison method, the grouping method, the index method, the chain substitution method, and the balance method.

Strategic management accounting as a basis for human resource management

Strategic management accounting is the information base for strategic human resource management, which registers, summarizes and presents the data necessary for making strategic management decisions by managers of commercial organizations. The organization's strategy determines the global, long-term objectives of a commercial organization.

Any ingenious strategy must be professionally developed, transformed into a strategic decision, and only then become a guide to action for its implementation by managers and staff of the organization. There are basic principles of strategic human resource management.

The first is the principle of scientific-analytical foresight and strategy development. To develop a strategic decision, mere wishes and subjective foresight are not enough. It is necessary to analyze the previous activities of the organization, the general situation in the field of its activities and the dynamics of their changes. A forecast is also necessary, and possibly the development of scenarios for the development of the organization in the near and longer term.

The second is the principle of taking into account and coordinating external and internal factors of the organization's development. The development of an organization is determined by both external and internal factors. Strategic decisions made on the basis of taking into account the influence of only external or only internal factors will inevitably suffer from insufficient systematicity, which, in turn, will lead to erroneous decisions. But strategic decisions must be verified and effective due to their special importance, due to the fact that behind them are the directions of development and subsequent results of the activities of not only an individual, but also the organization as a whole, on which the fate of many employees depends.

The third is the principle of compliance with the strategy and tactics of managing an organization. Both a proven strategy and effective tactics are required. At the same time, success is possible only if the organization’s tactics correspond to its strategy, and the formation of the strategy takes into account the real possibilities of solving tactical problems.

The fourth is the principle of priority of the human factor. When developing a development strategy, it is necessary to understand that neither the strategy nor the tactics of an organization can be implemented if they are not perceived as a guide to action by its personnel.

In addition, the organization's personnel must have the professional skills and qualities necessary to implement strategic decisions. Therefore, one of the main tasks facing the management of the organization is the selection of personnel capable of ensuring the implementation of the adopted management decisions, and the organization of effective personnel management in order to implement the adopted strategy.

It should also be noted that the activities of a modern organization should, as a rule, be aimed at satisfying market demand generated by the consumer. This is another aspect that confirms the priority of the human factor in the activities of a modern organization.

Fifth - the principle of certainty of strategy and organization of strategic accounting and control. To ensure a clear understanding by staff of the tasks facing them, dictated by the management strategy, it is necessary that this strategy has a specific formulation and is understood unambiguously.

As you know, the practice of managing an organization is based on the principle of feedback and the adequacy of the response of the organization's management to. emerging deviations in the course of action plans adopted by the organization.

Feedback is impossible without effective accounting and control of strategic decisions made in the organization. The effectiveness of such an accounting and control system is also possible only if there are clearly formulated strategic goals and decisions.

When determining a strategy, in our opinion, it is also necessary to take into account the following principles.

The sixth is the principle of matching the organization's strategy with available resources. If the organization's strategy is not provided with resources, and by resources we mean not only raw materials, components, energy, but also personnel, information, business partners, image, etc., then the implementation of the strategy, no matter how wonderful it may be, turns out to be partially or completely impossible.

At the strategy development stage, it is not always possible to accurately assess the resources that the organization may have in the future. However, forecast estimates must necessarily take place. Only when you are confident that the resources necessary to achieve your strategic goals will be at the organization’s disposal can you begin to work on their implementation.