MODERN INTERPRETATION OF THE FUNDAMENTALS OF MANAGEMENT ACCOUNTING

Abstract

The article reveals the basics of management accounting, its purpose and relationship with production and financial accounting. The authors note that the need for the formation of management accounting at a firm or organization arose due to the shortcomings of traditional financial accounting in the form of accounting statements, which does not provide complete information for forecasting economic activity and making operational management decisions, especially for management by field of activity (each process) because they are chronically outdated and lack efficiency. The polemic of foreign and domestic scientists on the purpose and subject of management accounting is carried out. The role of management accounting in the preparation of operational information to management in making managerial decisions is noted. The necessity of planning, budgeting, control and analysis in management accounting is revealed. The existing shortcomings are indicated and the methodology of accounting for cost responsibility centers is proposed. It describes the preparation of information in the context of the company's field of activity, the processes of supply, production, sales and sale of products, the importance of managing these processes in order to generate and increase income.