Building a management accounting and budgeting system at food production enterprises
Abstract. The issues of the management accounting and budgeting system functioning at food production enterprises are considered, taking into account their specifics in the development conditions of the modern economic environment, where the information becomes extremely in demand: that information is available in the management accounting concept with the task of making management decisions by the company`s management. The article investigates the application of cost accounting methods that is optimal for food production companies and the calculation of the production cost which allow real-time monitoring of deviations of actual costs from their normative values, timely making management decisions to respond to identified deviations. The development directions of management accounting are highlighted, the mechanism of forming a system of budgets using observation and sampling methods is revealed. The analysis of the budgeting practice at the food production enterprise is carried out, the problems associated with the lack of a unified methodology for forming budgets are identified. It is proposed at the initial stage to form some basic operating budgets with the subsequent introduction of a budgeting system by activity types.
Keywords: management accounting system, cost calculation method, budgeting, budgeting by type of activity (ABB), cost accounting by type of activity (ABC-costing)
Highlights:
♦ the necessity of supplementing the accounting system with a management accounting unit that includes a structured budgeting mechanism in order to increase the efficiency of an economic entity is substantiated;
♦ the key cost centers, cost accounting and cost calculation methods characteristic of food sector enterprises are identified, a set of cost calculation methods is recommended that allow a reliable and timely determination of the cost of products;
♦ an approach is proposed for the phased implementation of budgeting by activity types at food production enterprises.
Tatiana A. Korneeva, Lyubov A. Spiridonova - Samara State University of Economics, Samara, Russia