Management Accounting - a process during which the identification, measurement, and providing all necessary information, reveals the essence of the economic and financial activity of the company.Knowing the parameters of operational processes of the enterprise, contained in the relevant reporting is a necessary element involved in the planning, administrative procedures and evaluation of the firm.Management accounting - it is also a prerequisite for solving the problem of rational use of all resources and the completeness of their account.
administrative functions of the organization include several stages.After setting goals planning is carried out.This is followed by the execution of the task, and control over its decision.Further analysis is carried out of the work performed and formed administrative influence.As a result of the passage of the cycle to form a view about the current situation in the company.
effective decision-head of strategic and operational decision-making is directly dependent on the completeness and quality of information provided to it.That is management accounting - is a system whose purpose is to support the business based on an analysis of indicators of economic and financial activity.
reporting provided to the head, is to create an objective picture of the availability of resources and their efficient use.This information is necessary in order to achieve company goals.In this connection, the proper organization of management accounting is a major task.She stands in front of any enterprise.The first step in drawing up the necessary reporting is a reflection of basic operations.They are entered in specific registers.This is called primary or operational accounting.
for administrative decision-making leader must see the company not only as a single unit.It is important to objectively evaluate the effectiveness of each unit as well as the degree of rational use of available resources.It is also necessary to find out the needs of customers and supply vendors.Each situation must be provided in a variety of angles and have a sufficient degree of detail or generalizations.
upper level management accounting system includes summary financial performance.These registers are used for setting the main objectives and guidelines of general guidelines of successful business.
following levels of information make it possible to determine the cause and analysis of indicators that are generalized.These registers are used to provide more detailed information on the desired character of the value with the help of the detailed data.On this basis, an analysis of the possible causes of current deviations from the standard ratio.The information available on the levels of operational management requests either pre-set schedule.
Management accounting - a clear system, the construction of which is based on the same basic principle.It includes a statement of the problem to the statements that should support the timely adoption of an administrative decision, and be focused on achieving future goals.
Managerial Accounting is intended:
- to measure the results of the ongoing work of the organization;
- to ensure the clarity of its strategic objectives;
- focus on the critical indicators and highlights;
- to give a clear picture of improvement or deterioration of the performance of the enterprise;
- form the basis for the motivation of the team.
