Management accounting
Management accounting includes: 1. Decision-making; 2. Planning and control; 3. Production accounting. Management accounting is necessary in order to be able to make reasonable decisions, to be able to carry out planning and control more correctly, to be able to more accurately calculate the cost of manufactured products or provided services and to assess which product or service is profitable or unprofitable. Properly implemented, management accounting is a significant management decision-making tool, as it reflects the company's business in the cross-sections and in such detail as required by the company's management. It also allows you to see the real situation of the company, to evaluate the efficiency of its individual departments, to form information about the cost price of products or services, it helps to determine whether the company's assets are used rationally, whether the costs incurred in its activities are justified and how they could be reduced, whether it is useful to produce one or another product, which of the company's activities are profitable, which products should be expanded, what prices to set for goods, how to optimize their production and sales costs. Without these data, it is difficult to expect at least a little bit more success in company management and activity planning. After the implementation of management accounting, the entire initiative passes to managers, who become the main customers of such information, which makes it possible to make company management more efficient. One of the components of management accounting is the creation of a budget system. Budgets make it possible to plan and control the activities of the company and its departments much more effectively, because they not only formulate the desired goals, but also provide specific measures for the implementation of these goals. The budget is focused on making a profit, so budgets are prepared for all company expenses. This greatly facilitates the work of managers, because not all of the company's activities are controlled, i.e. i.e. not all costs, but only deviations from budgets that signal changes in expected profits or similar indicators.
