Responsibility Centers Research Articles

Management accounting of agricultural production: improving planning and standardization of costs in the management information system

The problems of organizing effective management accounting of agricultural production through the widespread use of economic methods, both production management and accounting and management methods and the development of their information functions, are very relevant and necessary. Management accounting in modern times is a universal integrated mechanism for the accounting and management activities of an agricultural organization. The management accounting information system should be oriented towards solving complex issues and making managerial decisions quickly. The purpose of the study is the rationale for rationing, planning and management accounting of costs, their control and analysis of production results in the agricultural management information system. The subject of the study is management accounting, while principles are formulated and new methods for rationing labor, material and biological costs of agricultural production are proposed. A unified nomenclature of cost items has been developed for planning, managerial accounting, analysis and control, both for individual production, accounting and planning objects, as well as for self-supporting units (responsibility centers) and the organization as a whole. For the organization of rationing, planning and management accounting of production costs, the sequence of implementation of special procedures is defined, a unified nomenclature of cost items is developed based on the basic conditions of requirements, which include classification attributes, degree of cost participation in the creation of new products, cost control by hierarchical levels of management. It is concluded that by comparing the actual and planned costs for the production of a particular object of planning and accounting, it is possible to analyze their cause and effect deviations, deviations of the actual marginal income and operating profit of the production of these products from their normative values ​​by changing each specific cost item.

Analysis of Factors Which Affect Budgetary Slack (Survey of SOE in Bandung)

This study aims to analyze the factors that affect budgetary slack which include employee motivation and asymmetric information with participative budgeting as the antecedent variables. The research method was conducted through a survey method by distributing questionnaires to 229 heads of responsibility center on SOEs in Bandung. In addition, interviews and group discussions were conducted to improve data collection. The data obtained were analyzed using the structural equation model - LISREL. The results showed that asymmetric information has a positive effect on budgetary slack and employee motivation has a negative effect on budgetary slack. Meanwhile, participative budgeting has a positive effect on asymmetric information and employee motivation.Keywords: Participative Budgeting, Asymmetric Information, Employee Motivation, Budgetary Slack

Working Together to Lead the College to Bigger and Better Things: Exploring the Relationship Between Academic Deans and Senior Administrative Teams

AbstractThis chapter examines an underexplored way in which deans enact their authority in Responsibility Center Budgeting (RCB)—mobilizing the expertise of administrators in their colleges to establish academic and budgetary priorities. The findings underscore the benefits of deans harnessing the expertise of their senior administrative teams to make sense of complex issues and problems.

FUNCTIONAL APPLICATION OF THE INTERNAL CONTROL SYSTEM IN AUTONOMOUS INSTITUTIONS

Modern business conditions are based on the laws and characteristics of the development of market relations. Successful and stable activity of any business entity today directly depends on the effectiveness of the management system, the most important element of which is properly organized control. In the activities of any business entity, the place, role and importance of control are as important as accounting, management and analysis. The domestic science of control has rather deep roots, and the multifaceted nature and depth of the concept of “control” are closely related to the concepts of “management” and “management accounting”. In conditions of increasing competition, when the problems of increasing the effectiveness of control are significantly updated, the issues of organizing internal control, its development and integration are becoming more relevant. The study of the category of "internal control", its subjects and objects, the place in the management process allows us to identify in its structure individual species characterized by a targeted orientation and methodological features. The practical implementation of the internal control system should be carried out in accordance with the basic principles of its effective organization, which are closely interconnected, and the procedure for combining them to a greater extent depends on the prevailing specific business conditions and circumstances. Integration of the internal control system into the general management system will ensure the reliability of information at various levels, as well as significantly reduce the potential for making erroneous management decisions. The principles of making a choice when implementing a rational and economically reasonable accounting policy of an autonomous institution depend directly on the valid regulations of the accounting standards of the public sector system of the economy. This aspect makes it possible to influence not only the effectiveness of the use of material, labor and financial resources, but also to ensure a proper level of capital units’ turnover, to obtain additional internal sources of capital investments financing and current assets, to attract external resources to expand the scope of an autonomous institution. The application of various models of internal control, including elements of a risk-oriented approach allows to carry out to the right degree conceptual process of organizing enterprise control. The model of the internal control system of an autonomous institution suggested by the authors takes into account a systematic approach, risk orientation considering factors of the internal and external environment, incorporating the model in business processes, with regard to the ultimate goal of implementation - increasing the efficiency of business processes while reducing expenses and increasing profit in the financial responsibility centers. Indicative management model is widely used as the foundation of management. As a rule, it is based on a spatial vision of internal control, and as an analysis, depending on the activity type of an economic entity, the business processing is allocated, taking into account the influence of various indicators that reflect the factors influence of the external and internal environment, in particular, in the context of parameters of competitive advantage. We consider the use of an effective model to be the most promising model of internal control. Based on the author's idea of an integrated model of internal control, its main components will be: a systematic approach, a focus on risks, taking into account factors of the internal and external environment, incorporating the model in business processes and financial responsibility centers. Furthermore the main object of the suggested model of internal control will be risks arising as a result of the influence of factors of the internal and external environment. The purpose of the suggested model is to increase the efficiency of business processes existing in the economic entity while simultaneously reducing expenses and increasing profits in financial responsibility centers. Considering that the element “control environment” of internal control within the framework of the current legislation has changed to the institutional internal environment, it is noteworthy that the introduction into application practice of institutional environment of an autonomous institution internal control consists of the following levels: external and internal. The external environment in the form of formal and informal institutes is prevailing, having an impact on the internal environment of an economic entity, represented by its own specific cultural and functional “micro institutes” (formal and informal).

THEORETICAL AND METHODOLOGICAL REGULATIONS OF MANAGEMENT CONTROL IN STATE HIGHER EDUCATION INSTITUTIONS

The research examines the works of local and foreign scientists who dedicated their studies to management accounting in general and management control in particular. After analyzing the scientific literature, it was suggested to understand the concept of "management control in state higher education institutions" as the information subsystem of management accounting of these entities. This subsystem is based on the management reporting of a state higher education institution, which assesses the effectiveness of activities in the context of a vertical and horizontal structure to ensure the influence of the management apparatus on the work of State Higher Education Institutions and structural units to achieve the mission and strategic goal of State Higher Education Institutions. It is established that not only financial but also non-financial indicators are subject to the study of management control. The evaluation of the responsibility centers’ activity of State Higher Education Institutions plays an important role in management control. The research suggests that the assessment of the responsibility centers’ activity of State Higher Education Institutions can be: effective and efficient; efficient, but ineffective; effective, but not inefficient; ineffective and inefficient. The main method for evaluating the performance of state higher education institution departments is comparison. The research shows how the activity of the revenue centers is carried out by comparing the actual amount of the received income with the estimated one, thus defining deviations and analyzing their causes. The elaboration of theoretical and methodological provisions of management accounting in a state higher education institution made it possible to propose its primary classification, as well as to adapt the general coefficients system for monitoring in the process of management control of the activity of a state higher education institution.

Responsibility Center Budgeting as a Mechanism to Deal with Academic Moral Hazard

Universities face inherent informational asymmetries. These make university budgeting prone to various challenges including moral hazard. The last forty years has seen some large research- intensive universities move from centralized incremental budgeting to decentralized Responsibility Center Budgeting (RCB). It is assumed that a faculty chooses a level of costly effort in generating revenue for the university. The level of faculty effort is not observable by the central administration. When there is no revenue uncertainty or when the faculty is not risk averse, pure RCB is best from the perspective of the administration. The intuition is that pure RCB fully aligns financial responsibility with academic authority, that is, it makes the faculty the residual claimant. Once the faculty is risk averse, partial RCB is optimal. Partial RCB provides a balance between providing the right incentives to the faculty and the university reducing the revenue risk faced by the faculty.

Responsible Accounting in the Hospitality Industry

Nowadays, due to globalization and intensified market competition, management attention has to be focussed on efforts where they will do the most good. In order to survive, especially in the service industry, Managers in the new business environment need more relevant cost and performance information on the organization’s activities, processes, products/services and customers. The task of management accounting is to prepare this accounting information, which has the possibility to indicate what costs, revenues and results should be. Responsible accounting is an underlying concept of accounting performance measurement systems. The basic idea is that large diversified organizations are difficult, if not impossible to manage as a single segment, thus they must be decentralized or separated into manageable parts. These parts or segments are referred to as responsibility centers that include: revenue centers, cost centers, profit centers and investment centers. This approach allows responsibility to be assigned to the segment managers that have the greatest amount of influence over the key elements to be managed. These elements include revenue for a revenue center, costs for a cost center, a measure of profitability for a profit center and return on investment for an investment center.

Responsibility Accounting and Profitability of Listed Companies in Nigeria

Structuring activities into responsibility centers and optimization of resource is a priority in meeting investors’ performance and profitability expectations in both small and large organizations. Studies have shown that to meet these expectations, adequate performance evaluation and reward system are managers’ challenges. This study investigated the effect of responsibility accounting on profitability of listed companies in Nigeria. <i>Ex-post facto</i> research design was adopted. The population was 173 quoted companies on the Nigerian Stock Exchange as at 31st December 2016. Ten companies were selected using stratified and purposive sampling technique. Data were extracted from published financial statements of sampled companies; validity and reliability of the data were premised on the scrutiny of the external auditors. Descriptive and inferential (Panel data regression) statistics were used to analyze the data. The study revealed that profitability measured by NPBT, of listed companies in Nigeria is significantly influenced by responsibility accounting <i>(RA), F-Stat=114.56, AdjR²=.0.6964, p=0.000</i>. There is no significant difference in the result of NPBT with and without the control variable of firm size. The result with control variables revealed F-Stat=87.63; <i>AdjR²</i>=0.7242; <i>P=0.000</i>. The study also revealed that RA had a positive significant relationship with EPS with control variables of firm size, <i>F-Stat=6.56, AdjR²=0.1442; P=0.000</i>. However, without control variables, no significant effect of responsibility accounting on EPS was observed as shown in the following result: <i>F-Stat=0.45, AdjR²=-0.0112, p=0.64</i>. Furthermore, the study revealed that profitability measured by ROA exhibited an insignificant relationship with RA given the following results, <i>AdjR²=0.0089; P=0.000</i>. RA with control variables of firm size, insignificantly affected ROA while Firm Size exerted significant positive effect on ROA (as the size of the firm changes by a unit, ROA increased by 23.9% as seen in model 3b) given the following result: <i>AdjR²=0.0399; P=0.782</i>. This study concluded that responsibility accounting had an influence on profitability of listed companies in Nigeria. The study recommended that since profitability is the whole essence of responsibility accounting, managers should ensure delegation of task with responsibilities clearly spelt out, regular appraisal process, achievable project budgeting, instituting cross functional teams and efficient reward systems put in place towards achieving the corporate objective that would influence better profitability.

Managing the suitability of cost calculation for manufacturing technology in the mechanical processing industry

Maximizing returns and increasing efficiency in manufacturing can also be achieved by organizing, managing and controlling production costs. Moving from the independent approach of costing to a systemic approach, by considering dependence and conditioning correlations with manufacturing technologies means reconsidering the concept of cost management. Both subsystems involve specific and common instruments and procedures, which allows a conceptual summation leading to a new system of approaching the goal of higher resource utilization in economic processes. The adaptation of calculation methods to manufacturing technologies is circumscribed to managerial measures undertaken to increase efficiency and internal yields as fundamental objectives. Reorganizing the enterprise through segmentation into Responsibility Centres can provide viable solutions for achieving management goals. Segmenting the enterprise and implementing integrated procedures requires significant costs that can’t be borne by all businesses, especially small and mediumsized enterprises that are still in the early stages of development.The proposed solution responds to the need of directing the activity through costs in SMEs in early developmental stages, which hold modest resources that do not allow the acquisition of integrated software. The application provides information with a high degree of utility, both in the pre-calculation and post-calculating phase, and has a high capacity to adapt to changes in technology. The results obtained from the analysis of the deviations require corrective or improvement operational measures, shortening the time gap between the moment of consumption and the corrections.

Improvement of internal control of formation and execution of estimates indicators in primary education institutions

The article deals with the concepts, content and components of the budget institution's accounting and control system. The accounting and analytical approaches to the internal control of the formation and implementation of budget indicators in the institutions of professional before higher education have been revealed. The concept, purpose and goals of management accounting have been defined and the model of introduction of elements of management accounting has been provided for providing the internal accounting data of the system of formation of planned estimates of revenues and expenditures. The content and substantiated functions of each of the elements of budget planning have been revealed, the types of indicators that reflect the activities of a budgetary institution have been defined and the basis for the budget planning and their influence on the formation of the budget of an individual budgetary institution have been revealed. The proposed model reflects the consistent transition of information flow from accounting, control and analysis to management decision making to optimize the process of formation and implementation of estimates in professional higher education institutions, taking into account the influence of internal and external factors. It has been substantiated that the establishment of responsibility centres in the institution provides timely and complete information on the current state of performance of the budget indicators. This information is further processed in the process of internal control and analysis of the performance of the estimates. The main tasks have been determined, the solution of which contributes to the achievement of the goals of internal financial control of the targeted use of budgetary funds in institutions of higher education. The internal control system has been designed to verify the appropriateness and reliability of the information flow. The purpose of internal control is to evaluate the effectiveness of the institution and the purposeful use of its budget. Specific methodological methods of management accounting and internal control within the framework of the model are determined by the tasks of ensuring the discipline of spending budget funds, improving the efficiency of use of public resources. It has been proposed to establish responsibility centres in the institution using the existing units to improve the informative content of the estimates of estimated assignments.

FORMATION OF A MANAGEMENT SYSTEM FOR AN INDUSTRIAL CORPORATION’S SUSTAINABLE DEVELOPMENT

Introduction. The development of a modern society is determined by the interaction of various state, commercial and public organizations, which have their own principles, traditions and values, on which the behavior of individuals is based. In such a case, an urgent problem for industrial corporations is finding a value-oriented idea to develop a system of careful management of the environment and taking into account the interests of all stakeholders. It must be accepted by consumers, staff and business owners, without which its successful implementation is impossible. For this purpose, the whole process, from the development of the idea to the control of the obtained results, should be carried out on the basis of scientifically substantiated methodical and practical recommendations for the choice of appropriate management measures that will maximally contribute to the sustainable development of the enterprise. Purpose. The purpose of this study is to develop a management system for an industrial corporation’s sustainable development while minimizing the losses caused by the realization of financial, technological and environmental risks. Methodology. The methodology of the work is based on the method of systematic analysis in describing а management system for an industrial corporation’s sustainable development, and management methods in the development of management measures. Results. The results of the article are to formulate the definition of "management system for an industrial corporation’s sustainable development " as a system in which executives of various levels exercise on the environmental, economic and social elements of the managed subsystem of industrial corporations a purposeful set of measures to ensure positive changes in socio-economic indicators of activity loss while minimizing caused by the realization of risks associated with the effects of financial, environmental, technological and human factors. In order to achieve sustainable development goals, industrial corporation executives are invited to choose a set of measures for the environmental, economic and social elements of the managed subsystem, which should include: organizational changes to identify the centers of decision-making responsibility, identify signs of risk realization and prevent the occurrence of appropriate risks and optimizing the distribution of results of industrial corporation activities among stakeholders.

ACCOUNTING OF COSTS IN THE MANAGEMENT SYSTEM OF ENTERPRISE LOGISTIC ACTIVITIES

Introduction. Nowadays, when information technologies are developing very fast, the issue of development of the logistics management system of enterprises, which directly affects their costs and increase the level of competitiveness in the market, is of strategic importance. Proper cost accounting in such a system allows the head of the enterprise, managers of logistics systems (centers) to obtain reliable information in a timely manner and in full, which ensures balanced management decisions and movement of the enterprise in a direction consistent with its purpose and main tasks. Purpose. The purpose of the article is a critical analysis of publications on cost accounting in the management system of logistics activities of the enterprise and the development of its own position and proposals of the author to solve these problems. Method (methodology). The following research methods were used during the research: mastering the content and main provisions of regulations, statistical materials and scientific publications on cost accounting and logistics management of the enterprise, induction and deduction, grouping and generalization of economic indicators, analysis and synthesis, documentation of facts of economic life, assessment of the value of enterprise property, accounting accounts, reporting of business entities and their segments, etc. Results. The problems of cost accounting in the management system of logistics activities of the enterprise are outlined. The essence of the terms “logistics activities” and “management of logistics activities of the enterprise” is established. The essence of the concept and the place of logistics costs in the costs of the enterprise are determined. The state and proposals for conducting synthetic and analytical accounting of logistics costs in the system of accounts are reflected. Find out what can be the centers of responsibility for logistics costs in the enterprise. Discussion issues on the accounting of logistics costs are identified, in particular: the feasibility of accounting for logistics costs by all enterprises; quantitative and qualitative criteria for determining such expediency; primary documents, accounting registers for accounting and distribution of costs for logistics and other costs of the enterprise; time parameter, subjects and methods of accounting for logistics costs; the volume, forms and deadlines for reporting on logistics costs.

Розвиток управлінського обліку запасів в інформаційному забезпеченні інноваційної діяльності

The article is devoted to the research of organizational and methodical bases of construction of the administrative account of stocks and definition of its role in information maintenance of innovative activity. Based on the study and systematization of scientific literature and regulations, it is established that management accounting is a system of collecting, analyzing, summarizing and presenting information about the activities of the enterprise and its structural units to management staff to ensure effective enterprise management, adoption of correct and reasonable current, strategic and tactical decisions, as well as planning for further development of the enterprise. It is substantiated that inventory management in information support of innovation is aimed at meeting the needs of users of management reporting in objective planning, actual and forecast information about inventories to ensure the ability to make informed management decisions in the process of innovation. The concept of inventory management developed by the author in the innovation management system defines the purpose and main tasks of such accounting, includes the relevant elements, principles and methods of inventory management, which together forms the organizational and methodological foundations of inventory management. The expediency of forming an information array of data of the management accounting system and its further use for compiling management reporting on the basis of data accumulated by the accounting system is proved. The scheme of organization of inventory management based on the transformation of accounting data is given. Approaches to the classification of stocks in the management accounting system are highlighted, which substantiate the expediency of allocating the following classification groups of stocks: according to the place of stocks in the production cycle; depending on the nomenclature of stocks; in accordance with the centers of responsibility identified at the enterprise; depending on the role that specific stocks play in the process of innovation; by cost centers. Approaches to the construction of analytical accounts of inventory accounting of different levels of detail, which is aimed at ensuring the information needs of management in the process of conducting innovative activities at the enterprise re substantiated.

ЦЕНТРЫ ОТВЕТСТВЕННОСТИ: ОТ ФИНАНСОВЫХ ПОКАЗАТЕЛЕЙ К НЕФИНАНСОВЫМ

This article explores the possibility of using the principles of forming responsibility centers different from the principle of linking to the financial structure, based on business processes that make up the model of the company. The approaches to the organization of areas of responsibility for non-financial indicators in economic entities are considered. It is proposed to improve the responsibility system on the basis of a balanced scorecard within the framework of the business model.

BUDGETING AS A BASIC FINANCIAL PLANNING

Based on the strategic objectives of the enterprise, has been determined relevance of budgeting and has been identified as essential to the effective development of operation activities. It`s proven, that budgeting – the process of organization the financial and economic management of economic entities, which based on the development of budget for responsibility centers and activities, monitoring of their implementation, analysis of budget anomalies and regulation of economic activity to harmonize and achieve results at all management levels. The rationale for the role of budgeting in financial planning is treated differently by scientists: establishment budget milestones without assigning lead; formation of the financial structure of an instrument of financial planning and controlling; that the budget is a management technology. It has been determined that budgeting, as a management technology, should include three interrelated constituent parts: technology (targets and standards, budget types, budget consolidation schemes, formats), organization (liability centers, budgeting and budgetary control regulations, distribution of roles and responsibilities between different management levels, slotting systems) and automation of financial calculation. Main causes of necessity for implementation budgeting in domestic enterprises are: lack of information on real costs, expenses and income in the enterprises; misuse of organization resources; significant financial loss; foreclosure crisis. Scientifically based budgeting principles established the practical application of which is a prerequisite for effective budgetary planning. The role of budgeting in financial planning was justified as well as its benefits for domestics’ enterprises. A number of problems need to be solved to realize of benefits of enterprises budgeting, namely: economic, technical, organization, social and information.

Accountability Accounting as Achievement Measurement Tool for Profit Center Manager at UD. Meubel Mulya Jati Widang Tuban

Accountability accounting is an accounting system that recognizes the various centers of responsibility in the whole company, which reflects the plans and actions of each responsibility center by determining certain revenues and costs. The purpose of this research is to explain the implementation and application of the profit center accountability accounting system as well as explaining the accountability accounting application system to assess the work performance of the profit center at UD. Mulya Jati Widang Tuban furniture. This type of research conducted by the author is descriptive analysis, namely a study to make a systematic, active and accurate description of a picture or painting regarding the factors, properties and relationships between the phenomena under study then compared with existing practices and conclusions drawn. Implementation and application of accounting system for profit center accountability accounting at UD. Meubel Mulya Jati, said to be good where there is an audit every year-end on the financial statements by each division where the calculation process is based on analysis of expenses / operational costs and sales results. Next, the performance of the profit center manager has increased every year.

Системне управління пріоритетними напрямами розвитку фермерських господарств і сільськогосподарських підприємств

У статті досліджено сутність системного управління пріоритетними напрямами розвитку фермерських господарств і сільськогосподарських підприємств. При цьому як система з певним набором підвидів, функцій, інструментів розглядається управління та як системні утворення – суб’єкти господарювання. Важливими складниками системного управління визначені функціональне, процесне й управління за центрами відповідальності. Їх залучення є найбільш перспективним щодо пріоритетних напрямів розвитку фермерських господарств і сільськогосподарських підприємств. Вони дозволяють використовувати спеціальні інструменти, методи та прийоми, адекватні змісту пріоритетних напрямів. При цьому в інформаційно-аналітичному забезпеченні управлінських рішень велика увага приділяється моніторингу та обліку господарської діяльності.

Responsibility Center Budgeting as a Mechanism to Deal with Academic Moral Hazard

Universities face inherent informational asymmetries. These make university budgeting prone to various challenges including moral hazard. The last forty years has seen some large research- intensive universities move from centralized incremental budgeting to decentralized Responsibility Center Budgeting (RCB). It is assumed that a faculty chooses a level of costly effort in generating revenue for the university. The level of faculty effort is not observable by the central administration. When there is no revenue uncertainty or when the faculty is not risk averse, pure RCB is best from the perspective of the administration. The intuition is that pure RCB fully aligns financial responsibility with academic authority, that is, it makes the faculty the residual claimant. Once the faculty is risk averse, partial RCB is optimal. Partial RCB provides a balance between providing the right incentives to the faculty and the university reducing the revenue risk faced by the faculty.

Перспективы развития российского федерализма

In the article, the analysis of the Russian federalism is carried out, problems and the prospects of development are defined. Development of federalism in Russia defines development of economic, political and social spheres of each region, ensures the state integrity and safety of the country. Purpose: to study features of the Russian federalism and the prospects of its development. Methods: dialectic logic, comparative and legal, formal and logical. Results: the analysis of stages of development of the Russian state, the legislation and practice of implementation of the Constitution of the Russian Federation showed that the Russian federalism changed and developed, were improved the relations between Federation and subjects, however problems of the constitutional regulation of federalism in Russia still remain. Conclusions: for development of the Russian federalism has increase in an initiative of regional public authorities in the solution of all-federal questions, it is necessary to regulate their powers in adoption of nation-wide decisions, to define the centers of responsibility of subjects, to develop institute of federal responsibility in general. The prospects of development of the Russian federalism consist in the constitutional fixing of bases of the federal relations, respect for human rights, optimization of the financial relations between subjects, strengthening of economic bases of the Russian federalism.

Концептуальні засади побудови системи управлінського обліку за центрами відповідальності в закладах вищої освіти

Концептуальні засади побудови системи управлінського обліку за центрами відповідальності в закладах вищої освіти