2.1 Functions of managerial accounting

Financial and economic activity of the enterprise within management accounting finds reflection in the reporting formed on structural divisions, the responsibility centers, types or groups of production, to budget articles. Besides, the reporting as a whole on the enterprise with generalization of results of work of the enterprise for a certain reporting period is formed.

The concrete contents, forms and types of the internal administrative reporting depend on organizational structure of the enterprise, types of productions, a target orientation and other factors.

Planning can be both long-term (strategic), and short-term (tactical). Long-term planning considers enterprise activity for the period of three-five years and more. In its framework strategy of development of the enterprise on prospect is developed: possible objects of capital investments, increase in capacities, gain of sales markets, etc. Management accounting provides information for decision-making on long-term prospect on such questions: what types of production are more favorable to production and sale how to build price policy, what estimated profitability of capital investments in this or that object (rationality of investments), etc.

Short-term planning (for up to one year) assumes development of budgets and estimates as a whole on the enterprise, and also in a section of its structural divisions with breakdown on quarters, months, days. Within management accounting procedure of formation of budgets is established, development of short-term plans by all divisions of the enterprise is coordinated[4].

All information necessary for management, has to be systematized on certain signs. Besides the general directions of collecting and information interpretation in management accounting it is necessary to form also target flows of information collected and systematized on concrete administrative decisions. So, for example, at development of the administrative decision on production of this or that product information on possible costs for production and realization - full and variables, demand for this product gathers on the market, the average prices on necessary raw materials and materials, cover amounts on product unit, etc.

Managers of any enterprise at elaboration of strategy and policy of management are guided by data of the accounting of the expenses reflecting use by the enterprise of all types of resources in the course of activity. In this regard expenses are one of the main objects of management accounting. The special attention of system of management accounting is directed on reflection of dynamics of behavior of expenses of various resources depending on such factors as increase or reduction of sales volumes, product range change, etc. Besides, much attention is paid to the accounting of expenses on the responsibility centers.

For control of use of all types of resources of the enterprise the operational analysis of activity of each center of responsibility on the basis of which "narrow" places in production and realization come to light is made. Received information is provided to linear managers for adoption of timely administrative decisions.

In management accounting much attention is paid to the accounting of deviations of the actual indicators of work from planned or standard. The method of the factorial analysis, i.e. division of all arisen deviations for the reasons which have caused their emergence is thus used.

Enterprise plans not always are strictly set standard of activity. At a deviation of the actual results from planned they can be specified or be reconsidered if the preliminary analysis shows unattainability of any indicators. This way of management is called as management by exception. After specification of indicators measures of correcting action for reduction of the actual results in compliance with the planned are taken. Thus dynamism and flexibility of administrative process is provided.

Methods of calculation of product cost and definition of financial result depend on a look and branch accessory of the enterprise, the production technology and other factors. It is known that the financial result of activity of the enterprise consists of various components: the income from production and realization of production, property delivery in rent, sales of not used economic means, percent on deposits to securities of other enterprises and the organizations, etc. So, in a case when the enterprise lets out some types of production, the positive result from production and sale of one production can be shaded by a loss from another. Same concerns also activity of divisions of the enterprise [5].

By means of information formed in management accounting, and also development of budgets and estimates accurate coordination of actions of managers on systematization of the tasks facing the enterprise, and achievement of ultimate goals of business is made for different levels of management. Thus action of the principle of linear management is provided.

Management accounting of the enterprise is focused first of all on the future. Its purpose is formation of information which would allow to make the administrative decisions providing not only good results in the reporting period, but also stable development of the enterprise in the future. Thus, development of actions for increase of efficiency of financial and economic activity of the enterprise both from the point of view of more rational use of resources, and regarding expansion of sales markets, development of new productions, etc. is necessary. For information support and an effect assessment from these actions in management accounting a number of methods is used. So, analysis of "expense-volume-profit" widely used in management accounting gives the chance to track interrelation between such characteristics, as expenses, the volume and profit, i.e. to define impact which changes in expenses, the goods price, volume of its production and the nomenclature of let-out goods have on size got from realization of goods of profit, and also for an assessment of change of one of these factors or several factors together.