2.2 Methods of managerial accounting

The main method of the solution of a task is the analysis of expenses and creation of a cost management system. "Expenses exist not in order that to count them. They exist that to reduce them" - Tayichi It (the founder of the Toyota production system directed on total decrease in operational expenses in the organization). From this position it is necessary to consider a cost management system.

Analysis and creation of a cost management system:

1 . Collecting all possible information on expenses at the enterprise - cost (the prices of resources, compensation rates, etc.) and operational (account coefficients, standards of expenses of time, the characteristic of the performed work) business characteristics. All these data arrive in system of management accounting by means of so-called primary documents. In them the fact of the performed work and quantity of the used resources are fixed. Primary documents are filled in on places of emergence of expenses. Data on expenses can gather manually or with use of information technologies. Certainly, more perfect form of data collection assumes use of software products of processing.

2 . Group of expenses according to the chosen classification.

3 . Procedure of allocation of costs. Consists of three stages:

The 1st - gets out object of the accounting of expenses;

The 2nd - selection and accumulation of the expenses relating to this object of the account;

The 3rd - gets out a method of transferring of expenses of auxiliary services on production divisions.

Technique of allocation of costs:

definition of base and principles of allocation of costs;

development of formats of primary forms of account about expenses;

development of a technique of filling of primary forms of account;

development of a technique of processing of primary forms of account, allowing to distribute expenses between types of products, objects of the account and kinds of activity;

development of formats of administrative reports on expenses.

4 . Identification of important and controlled expenses.

5 . Detailed studying of each item of expenditure.

6 . Choice of a method of calculation of prime cost.

7 . Analysis. Consideration of possibility of decrease in expenses. Analysis of possibility of reduction of influence of adverse factors. Definition of the periods and the reasons for which there are sharp changes:

the analysis of "expense-volume-profit" (CVP analysis) - process of combination of information on behavior of expenses with information on the income from realization for the purpose of planning of the income, expenses and profits for various levels of volume;

what-if the analysis - the type of the analysis investigating effect of change in parameter on results. In other words what-if shows the analysis as all parameters of the project (the budget or the plan) change at change of the key. It can be production price, sales volume, output, a salary of the personnel, a rate of taxes, etc. Quality of carrying out what-if of the analysis depends on model of the project used for this purpose. It has to be full, precisely reflect interrelations and use acceptable estimates. If the model full and precisely reflects interrelations of power, expenses and the revenue, then the remained question is an accuracy of used data. Specialists in planning test models by a variation of key estimates. The sensitivity analysis is for this purpose used[12];

The sensitivity analysis - the analysis of effect of change of parameter on the decision, instead of on result. In other words it is process of a selective variation of key estimates of the budget or the plan. He allows to identify estimates which are especially critical for the decisions which are based on this model. For example - the labor necessary for production of each product, serves as important parameter in the course of drawing up the preliminary budget. Little changes in this parameter involve considerable changes in a profit indicator.

Scientifically reasonable classification of expenses is of great importance for the correct organization of the accounting of expenses. Within management accounting of expense share on category depending on what administrative problem should be solved:

1 . Classification of expenses for calculation of prime cost of made production, estimation of cost of stocks and the got profit:

entering and expired. Entering expenses - those means, resources which were acquired, are available and, as expected, have to bring in the income in the future (in a balance asset - stocks of materials, stocks in a work in progress, stocks of finished goods). Expired - during the reporting period were spent and lost ability to bring in the income further. It is necessary to consider that redistribution of money isn't an expense;

direct and indirect. Expenses belong to straight lines (conditional and variable), directly connected with process of production of a concrete type of production and which can be included in prime cost the of groups or separate orders (materials, purchased products and semi-finished products, the main salary of production workers, etc.). Expenses which can't be carried directly on group or the separate order (maintenance costs and operation of cars and the equipment, a general production, general running and other expenses) belong to indirect (conditional and constant) expenses. These expenses include in prime cost an indirect way - by the principles determined by the instruction on planning, the account and prime cost calculation at the printing enterprises;

production and non-productive. Production expenses are connected with production process. Expenses on container, packing, transportation, expenses belong to extra production expenses on sale and commercial collecting;

the main and laid on. The main expenses are directly connected with primary factors of production (the main and auxiliary materials, a salary of the main and auxiliary workers, the electric power, etc. for the capital equipment). Laid on expenses are connected with the organization of production and management. They are caused by social and economic conditions of managing and the production organization (losses from idle times, damage of material resources, etc.)[7].

2 . Classification of expenses for adoption of administrative decisions and planning:

constants and variables. Variable (proportional) expenses can change depending on output (the main materials, a salary of production workers, the electric power for technical needs). Constant (disproportionate) expenses don't change depending on output (a management personnel salary, the electric power,

3 . Classification of expenses for control and regulation:

adjustable and unregulated. Adjustable expenses - are subject to influence of the manager of the center of responsibility.

The group and allocation of costs is carried out depending on that is considered object of the account. Expenses are grouped in a place of their emergence, carriers of expenses, types of expenses and the responsibility centers:

1 . In an emergence place. Expenses are grouped in productions, shops, sites and other structural divisions of the enterprise on which planning, rationing and the account is carried out. Such group of expenses is necessary for control of overall performance of structural divisions and the enterprise as a whole. And also for distribution of laid on expenses between separate types of production at calculation of product cost (works, services).

2 . On carriers. Carriers of expenses call types of production (works, services) the enterprises intended to realization. This group is necessary for determination of prime cost of a unit of production (works, services).

3 . By types of expenses. Necessary condition for total control of expenses. This classification of expenses is in essence defined by hl. 25 RK Oil Company: material inputs, depreciation charges, expenses on compensation, other expenses. Allows the enterprise to calculate structure of prime cost of made production - a percentage ratio of separate elements of prime cost in a total cost of expenses for production (reserves on its decrease).

4 . On the responsibility centers. The responsibility center - structural division of the organization at the head of which there is the manager controlling expenses, the income and the means invested in this segment of business by administration (for example, plant shop). Irrespective of the size of structural division in management accounting allocate four types of the centers of responsibility:

the center of expenses - his head possesses the smallest administrative powers, therefore, bears the minimum responsibility for the received results. He is responsible only for production expenses. The system of management accounting is aimed only at measurement and fixing of expenses on an entrance to the center, i.e. rationing, planning and the accounting of costs of production is organized. Results of activity of the center (the volume of the made production, the rendered services, the performed works) aren't considered[6];

the center of the income - the manager is responsible for obtaining the income (receipts), but doesn't bear responsibility for expenses (department of wholesales of trade organization, distribution department - in publishing house, department of placement of borrowed funds - in bank). Problem of management accounting - fixing of results of activity of the center of responsibility at the exit;

the profit center - the head is responsible as for expenses, and the income of the division, makes decisions on quantity of consumed resources and the size of expected revenue. Management accounting has to provide information on the cost of expenses on an entrance to the center, expenses in the center and the end results at the exit. The center purpose - receiving the maximum profit by an optimum combination of parameters of put resources, output and the price;

the center of investments - the manager controls the income and expenses, watches efficiency of use of the invested means (own investment decisions).