MANAGERIAL ACCOUNTING

Leading specialists: S.M. Galouzina

The effectiveness of the functioning of the enterprise in the market economy depends much on the managerial activity which provides actual self-sufficiency in the selection of the activity status, in the schedule of the plans for development, in the identification of the objectives in the marketing, financial strategy, etc. Accordingly the responsibility of the leaders for their managerial decisions increases to a great extent. Objectivity, efficiency and expediency of the managerial decisions depend on the well-timed and reliable information about manufacturing and financial state of the enterprise. The managerial accounting is a subsystem of the business accounting that in the frame of one enterprise provides its administration with adequate information for planning, operation and control over the activity of the organization. That process includes reveal, calculation, collection, analysis, preparation, interpretation, transfer and reception of the information necessary for the filfillment of the managerial functions. Handling of the information in the managerial accounting allows to evaluate the operation of the enterprise managers, to reveal the areas of the potential risk, the most effective directions in the activity of the enterprise, to develop alternative approach to the solution of different objectives and to analyse the work of specific structure subdivisions. The main goal of the managerial accounting is to provide the managers with the necessary information for the purpose of the achievement of the particular operating rate. The managerial accounting is the mechanism of the operation of the business activity oriented to the profit. The enterprises must keep managerial accounting under the conditions of the market economy. The enterprises have to develop and implement the system of the managerial accounting in accord with the objectives and capabilities of the management. The principles of the managerial accounting should be used in the construction of the internal accounting and control system because it is the internal accounting data that help to evaluate the results of the managerial decisions and bring the responsibility for their execution.