Management Accounting Data Research Articles

Unveiling How Internal Control Foster Sustainable Green Innovation Ecosystem: Mediating Role of Environment Management Accounting Data Analytics

This study constructs and validates a theoretical framework that focuses on the correlation between internal control systems (ICS) and the sustainable green innovation ecosystem (SGIE). Furthermore, it aims to investigate the role of environmental management accounting data analytics (EMADA) as a mediator in the relationship between ICS and SGIE. The current study utilized a methodological approach consisting of three components namely a literature review, expert interviews, and a self-administered survey. The study used structural equation modeling to analyze the proposed model, which was constructed using statistical data gathered from a cross-sectional survey of 583 accountants working in public sector organizations (PSOs). The acquired observations underscored the interdependence and mutual reinforcement of the proposed dimensions. These observations provided guidance for PSO leaders to recognize and take advantage of chances to enhance their effectiveness in the green innovation implementation journey. They also helped in developing strong strategies to efficiently steer their digital transformation process. The work's detailed findings were crucial in enabling policymakers to establish rules and regulations linked to digitalization and green innovation.

Economic planning at agricultural enterprises: Ukrainian experience of increasing the availability of data in the context of food security

Purpose. The purpose of the research is a comparative assessment of the state of data availability for planning the economic activity of agricultural enterprises, as well as the development of a model for increasing data availability based on the established correlation between socio-economic factors of internal and external influence of agricultural enterprises and readiness to disclose information when receiving consulting services.
 Methodology / approach. The study is based on the results of a survey of agricultural enterprises’ (farms’) managers, collected based on a random sampling, the volume of which satisfies the requirements of representativeness. The results of the research made it possible to conduct a correlation analysis of the dependence model for increasing data availability based on the established correlation between socio-economic factors of internal and external influence of agricultural enterprises and readiness to disclose information when receiving consulting services. The obtained results of the analysis made it possible to confirm the research hypotheses and obtain answers to several research questions.
 Results. The study reveals several dependencies and trends in the formation of openness and availability of data at agricultural enterprises (farms) for the implementation of economic activity planning by third-party consultants/experts. A strong direct connection was established between the unwillingness of enterprises to share management accounting data with third-party experts precisely because of the lack of practice of collecting such data, and not because of privacy concerns or negative past experiences. It was established that at enterprises characterized by a low level of openness to the dissemination of management accounting data, planning work is conducted directly by managers without qualified support of experts or planning is not conducted at all. The results suggest a number of solutions to ensure better access to the data needed for effective planning.
 Originality / scientific novelty. The study concerns the problems of data availability at agricultural enterprises (farms) for the implementation of planning of economic activities by external consultants/experts and uses the method of correlation analysis to establish relationships between variables of the model. The data collection paradigm of agricultural enterprises for planning their activities has been developed. For the first time, the relationship between a number of socio-economic factors and the openness of agricultural enterprises and farms to management consulting was established.
 Practical value / implications. The study formulates a number of proposals for improving the data availability at agricultural enterprises (farms) for the implementation of economic activity planning by third-party consultants/experts, which can be used by regional and state development agencies; state and private scientific institutions; governmental and non-governmental organizations; product manufacturers; legislators, etc., when developing support programs for agricultural producers to motivate them to use more effective planning tools, as well as when determining areas of activity for the regional advisory centers, taking into account the priority tasks in the sphere of planning data collection and analysis at agricultural enterprises and farms. Further studies of the data availability for planning the economic activity of agricultural enterprises are possible on the basis of the current study.

Technical and economic efficiency of the unconventional propulsion units use for civilian aircraft of various purposes

In order to develop a methodological apparatus for assessing various stages of the life cycle of hybrid/electric propulsion units, the existing approaches to estimating the costs of developing, manufacturing and operating aircraft engines of the traditional propulsion units scheme for determining the cost framework and their further harmonization with the technical and economic boundary conditions of new elements in the hybrid/electric SU scheme are considered. The relevance of solving the problems of assessing the technical and economic efficiency and forecasting the cost of hybrid propulsion units is determined. To solve the tasks, a methodological approach to determining boundary conditions and criteria is proposed. Within the framework of this methodological approach, a preliminary assessment of the cost of the main stages of the life cycle of aircraft engines for various variants of traditional propulsion units was made. Based on the estimates obtained, criteria for the economic efficiency of using a hybrid propulsion unit of various capacities for civil aircraft were formed. A computational and parametric analysis of the cost estimation of variants of aircraft engines included in the propulsion unit of the traditional scheme is presented. The role of accounting and management accounting data in economic and mathematical models is determined, which makes it possible to qualitatively reflect the economic efficiency of the life cycle of aviation products.

Accounting and analytical support of business processes in the conditions of the digital economy

Introduction. Accounting as a powerful information system must take into account the requirements of modernity and, first of all, the rapid development of IT technologies, which significantly increases not only the efficiency of accounting work, but fundamentally expands the functional capabilities of accounting and analytical support for all participants in market relations. The digital economy involves the maximum automation of business processes, their analysis for the level of digitalization, which makes it possible to determine the real need of a business entity to configure specific processes for the use of an electronic format. The use of digital technologies makes it possible to conduct real-time analysis of business processes, data visualization and objectively justify possible management decisions of a current and strategic nature aimed at ensuring continuous and effective activity. Purpose. Consists in researching the possibility of using management accounting data for multifactorial analysis of financial results, costs per UAH 1. production, profitability and justification of management decisions for operational planning, cash flow budgeting, internal audit by monitoring deviations based on digital technologies. Method (methodology). To achieve the goal, general scientific, statistical methods and approaches, analytical procedures and tools were used, including horizontal and vertical analysis, multifactorial analysis based on end-to-end integration of management accounting data. The results. The possibility of using a limited volume of management accounting data for a wide range of not only analytical research, but also financial planning (revenue, expenses, financial result), internal audit (control for deviations), crediting (cash flow movement), taxation (incentive increase in the physical volume of production). It is proposed to introduce into the current analytical practice the ratio of profit monetization as an indicator of "confidence" in profit, its balance with cash flows to ensure not only current solvency, but also prospective financial stability.

ESG concept as a tool for optimising spare parts stocks in car service centres in the Republic of Cyprus

The article proposes a comprehensive analytical study of the potential for the use of the ESG concept as a tool for optimizing spare parts stocks in car service centers of the Republic of Cyprus. The study is based on the materials of the Statistical Service of the Republic of Cyprus, on the information provided in the relevant scientific literature, as well as on the results of the empirical research. An analysis of the management accounting data of 12 car service centers of the Republic of Cyprus was carried out, including 4 dealer networks, 4 independent multi-brand companies and 4 family businesses. The directions of implementation of the environmental part of the ESG concept at car service enterprises of the Republic of Cyprus are specified. A comparative assessment of the profitability of stocks and CO2 emissions in the business processes of managing auto parts stocks has been clarified. Expert assessments of the state of ESG management in the spare parts inventory management system in the analyzed car service centers are presented. It is recommended to conduct optimization of spare parts inventory management in car service centers of the Republic of Cyprus to multiply the economic and social effects from the development of the elements of the ESG concept based on the author’s CDMD model: Systematism - Decentralization - Monitoring (measurements) - Digitalization. The introduction of the proposed CDMD model should provide economic benefits, expressed in an increase in the profitability of inventories and various ESG gains.

Nonlinear Hypothesis Generation Strategy of Management Accounting Data Mining

Management accounting plays a greater role in providing business decisions for enterprises. As the core technology of big data processing, data mining technology can process a large amount of complex, structured, and unstructured information very efficiently. In this paper, the nonlinear system is taken as the research object, and the obtained system data is directly used. In the framework of divide and conquer strategy, multi‐model method is combined with data clustering and a local modeling algorithm to study the nonlinearity of management accounting data mining. Through online adaptive estimation of parameters, aiming at the zero dynamic problem of the non‐minimum phase system, through the decoupling matrix analysis of the nonlinear system, the state of the original strategy is dynamically extended to make the estimated parameters asymptotically approach the true value. The estimated parameters are applied to the nonlinear hypothesis strategy to achieve the goal of linearization control. It is assumed that the generation strategy is applied to the mining of different related types of rules without manually setting parameters, which greatly improves the efficiency of rule discovery. Through case analysis, this paper demonstrates the feasibility of applying nonlinear hypothesis strategy of data mining technology to management accounting and puts forward the relevant application process framework. The validity and feasibility of nonlinear hypothesis strategy data mining technology in management accounting are verified.

Management Accounting Development in the Process of Digital Economy Formation (Case of Georgia)

In the article there is given the assessment of digital economy in Georgia. It is established that effectiveness of managing activities of the organization depends on the information level support. There are discussed the issues of evaluation of the management accounting system functioning, development of cost accounting and budgeting methods, selection of the automated system for information and analytical support. The management accounting data allows not only to analyze the financial results of the organization activities, but also to manage costs, formulate assortment, investment, contract and pricing policies, and, consequently, directly to manage the organization work. The management accounting, which is the special system of knowledge, skills and abilities, can be described as the combination of two main subject areas: as a science and as a practical field of activity. The digital economics and management accounting are interrelated, because along with their development, the management accounting data appear digitally, processing them while using the innovative technologies. The management accounting should be flexible enough to provide any data needed to make the managerial decisions. The management accounting automation is the individual and complex process, as it is necessary to “transfer” the requirements of owners, managers to the accounting system, in terms of software product functionality and parameters, in accordance with the approved regulations. There exist the ready-made software products designed for automation of accounting, however, for medium and large business entities, the best option is to refine the software package for their specific activities, which will allow them to get the maximum efficiency. The article discusses the options for setting up the management accounting system in the organization, substantiates the benefits of implementing “1C: ERP Enterprise Management” as the mechanism for effective management of the company resources. Keywords: Automation, information technology, digital economy, management, Management accounting, control. JEL Codes: D83, L86, L96 The scientific works of the following authors are dedicated to a similar topic: Tchiladze .I; Sokolov I.V.; Vakhrushina M.A.; Ivashkevich V.B.; Kaverinoi O.D; Karpova T.P; Khorngrena CH.T; Foster D.J; Antonia R.N; Parker R.N and others.

Management Accounting Data in Statistical Surveys

The article is devoted to analysis of the factors determining the feasibility of management accounting data applications in statistical research at micro level, which results will be used in elaborating and taking effective management decisions, as well as in the budget process for a given period of business operation. It is emphasized that the production efficiency can be achieved by the optimal use of resources given an acceptable level of risk. An analytical review of research works giving evidence of the need to use results of statistical research in business management was made. It showed that the necessity for analysis of the relationship between management accounting and creating databases for statistical research had not been clearly emphasized. Also, there has been no analysis of trends in creating a regulatory information framework at the national (cross-sectoral) level, which would have to consist of norms and standards of accounting and cost control in business entities. The assumption on a probable utilization of material resources in the shadow production due to the outdated regulatory framework is made.
 Emphasis is placed on determining the fields of statistical research which results are going to be used in the business management system and evaluation of structural units in a business enterprise. The advantages of normative cost accounting and production costing for performance assessment and quick response on identified deficiencies in the management system are highlighted. It is argued that human resources constitute the main economic factor in the business operation process. The basic postulates of the national economy development are given, which have to frame the cost policy of business enterprises with taking into account results of statistical research. Problems related with applications of management accounting data in statistical research are outlined, which solutions can be subject of further research.

The essence and concepts of accounting information paradoxes and assessment of their impact on management decisions

Accounting information serves as a primary source for the formation of financial and management accounting data for further managerial decisions. However, existing forms of financial reporting cannot fully meet the information needs of stakeholders. One of the reasons is the paradox of accounting information. Accounting paradoxes are not fully studied and requires proper coverage, first of all, the generation of theoretical and methodological framework, in order to better understand and optimize the existing contradictions and controversial issues. The article highlights the economic essence of accounting paradoxes, their importance in the process of making effective management decisions, identifies the causes of formation, impact and consequences of distortion of the accounting data in making rational management decisions.
 On the basis of the conducted research the author’s classification of accounting paradoxes on common signs is generated. The role of the influence of accounting data paradoxes on the further activity of the enterprise is argued. The causal relationship between the possibility of distortion of accounting information at different stages of its formation depending on the object of accounting and its further transformation into management data is identified. As a result of the analysis of the outlined topic a number of solutions of problem questions are offered, namely: optimization of the accounting information, minimization of influence of paradoxes of the accounting information.

ВПРОВАДЖЕННЯ СИСТЕМИ УПРАВЛІНСЬКОГО ОБЛІКУ НА ПІДПРИЄМСТВІ: ОРГАНІЗАЦІЙНИЙ АСПЕКТ

The conditions for the effective operation of the enterprise on the market require the formation of an internal information system for the management of the business entity, which is based on management accounting data and contributes to the improvement of the efficiency of management decision-making in the process of operation. The article updates issues related to the practical implementation of the management accounting system at Ukrainian enterprises. It has been established that, characterizing management accounting either as a separate system or as a subsystem of accounting, scientists unanimously identify identical functions and tasks inherent in it. The article highlights the following functions of management accounting: ensuring the functioning of information systems for the automation of enterprise management; monitoring of the main areas of financial and economic activity; coordination of activities to achieve operational and strategic goals; provision of informational and advisory support for making management decisions; development of measures to improve the efficiency of the financial and economic activity of the enterprise. The factors on the basis of which the management accounting system is created at the enterprise were studied: unsatisfactory economic indicators; emergence of new goals; inconsistency of goals; outdated methods of planning, costing and analysis; lack of accounting and analytical methods that do not meet the requirements of monitoring financial and economic activity; repetition or absence of certain functions, conflicts in the process of their implementation. The most widespread errors in the implementation of the management accounting system were identified: misunderstanding of the essence and tasks of management accounting; wrong choice of goal; too much or not enough information; excessive amount of controlled indicators; wrong choice of information sources; focus on costs and full budget control; lack of income and risk analysis; organization of management accounting without prior examination of the reliability of information sources at the enterprise; integration of management accounting into other departments. It was found that the implementation and organization of the management accounting system is a complex and expensive process, but, as global and domestic practice has shown, it is a necessary part of business management.

ІНФОРМАЦІЙНО-АНАЛІТИЧНЕ ЗАБЕЗПЕЧЕННЯ ОБЛІКОВО-ФІНАНСОВОЇ СКЛАДОВОЇ СИСТЕМИ ЕКОНОМІЧНОЇ БЕЗПЕКИ АГРАРНИХ ПІДПРИЄМСТВ

The article summarizes the approaches to information and analytical support of the accounting and financial component of the agricultural enterprises’ economic security system. At the time of unstable economic situation in the country, effective management of agricultural enterprises requires the creation of a new information system that would provide reliable, high-quality, and timely data for management staff to make management decisions. This has led to an increase of an economic security’s role as one of the enterprise management system’s elements. The accounting and financial component of economic security is a system of economic management of the enterprise, located at the intersection of different management functions and areas of activity of the enterprise. In the current conditions of global socio-economic development, a very important component is the information and analytical support of the management process, which is the collection and processing of information needed to make the necessary management decisions. The management of agricultural companies is certainly tasked with obtaining accounting and financial information, its processing, as well as the further formation and transmission of new derivative information in the form of management influences. In the practice of economic activity for effective management must be developed accounting and financial policy, which should ensure the achievement and strengthening of the optimal level of the economy’s financial condition. Accounting, financial, tax, and management accounting data should be taken into account when implementing financial policy. Lack of necessary information, the use of doubtful or outdated data is a precondition for serious miscalculations in making the right decisions. Financial accounting is the basis of economic security and it is a defining element of the national accounting system, which is regulated by the government. The development of financial accounting in the agricultural production sector necessitates the unity of calculating methods’ system of financial indicators and proper information reflection through technical, technological, organizational, managerial and economic unity. Thus, one of the ways to raise the agricultural economy is to improve the information and analytical support of agricultural enterprise management, which confirms the relevance of the research topic.

The use of management accounting data and on-farm reporting for management decision-making

В статье определены основы управленческого учета как метода для принятия управленческих решений. Также изучено влияние указанного способа на результативность и эффективность деятельности предприятия и его субъектов.

Organizational and Methodical Aspects of Accounting for Fixed Assets of Economic Entities in Various Areas of Activity

The authors propose a differentiated approach to the organization of fixed assets accounting, which consists in structuring the account 01 “Fixed assets” depending on their areas of activity of economic entities. This article also substantiates the composition of analytical accounts of fixed assets in the context of factors affecting the accounting. The study was carried out on an urgent topic - the accounting of fixed assets is undergoing changes due to legislative innovations. In addition, organizational and economic aspects and factors of a specific, industry-specific nature are of no small importance when building a system of accounting for fixed assets. The analysis of the role and significance of the influence of the characteristics of various types of activities of economic entities on the accounting of fixed assets allows us to identify the directions and methods, the use of which will ensure a positive dynamics of the efficiency of the use of fixed assets and the growth of labor productivity. In the course of the research, general scientific methods of cognition were used, such as analysis and synthesis, consistency and complexity, analogy, comparative and logical approach. The organizational and methodological provisions developed by the authors of the article contribute to the development of the methodology of accounting for fixed assets of economic entities engaged in various types of activities. Some of the results of this study can serve as a vector for further practical and theoretical developments, increase the transparency, relevance, and analyticity of information about the activities of an economic entity based on accounting and management accounting data. The recommendations and approaches proposed by the authors of the article can be applied as a basis for improving the accounting and methodological support for the management of fixed assets of an economic entity.

Six Impossible Things Before Breakfast

Six Impossible Things Before Breakfast

МЕТОДОЛОГІЧНІ ПІДХОДИ ЩОДО УПРАВЛІННЯ ІНВЕСТИЦІЙНИМ РИЗИКОМ: ТЕОРІЯ І ПРАКТИКА

Methodological approaches to investment risk management for enterprises (firms) have been improved. Using mathematical methods, the term of the loan and the payback of the existing investment project are calculated. The methodology is proposed as a set of methods and techniques for preventive management decisions, which allows a comprehensive approach and automation of calculations with a minimum list of indicators, and thus ensure timely control over the implementation of investment or existing project. An attempt has been made to close gaps in existing methods and developed software products for managing financial flows, including investment risk for a particular enterprise (firm), large consulting companies that use management accounting data for management decisions without reference to external factors, affecting the implementation of the investment or existing project. By comparing absolute and relative values in the research process, it is determined which factors determine the investment or financial risk, what are the relationships between them and so on. The developed author’s technique allows to give answers to the following questions: to determine the payback period of this investment; control over the financial and economic activities of the enterprise; options for obtaining the planned net present value (NPV); calculate and control the number of products sold in case of non-compliance with the sales schedule; calculation of price, cost and tax; adjust programs depending on industry characteristics; determining the amount of depreciation; development of design capacity; take into account the level of inflation at the time of implementation of the investment project; the ratio of fixed and variable costs in the cost of production; take into account the liquid value of the equipment. Keywords: investment risk, return on investment, discounted income, net income, discount, profitability of investment project.

Formation of feeding groups according to management accounting data

The article discusses the solution to the problem of uniting animals on a cattle farm into groups to organize their rational feeding. The task is solved based on the use of management accounting data; the solution of the problem is automated with the help of the CORAL software package

Determinants of information system quality and data quality in management accounting

Data quality is critical to adequately perform management accounting (MA) tasks, and information systems (IS) provide the data for the MA domain. However, IS can vary vastly across firms, which may influence the basis for rational decision making (i.e., data quality). This study therefore aims to investigate the impact of IS quality on data quality in MA and to analyze the determinants that can influence IS quality in MA. We conduct a cross-sectional survey among 143 medium-sized and large firms. Based on a structural equation model, we predict and find that IS quality significantly affects management accounting data quality (MADQ). Company’s IT investments, internal and external IT knowledge, innovative technologies, and data source variety are significantly associated with IS quality in MA and in turn indirectly affect MADQ. This study highlights the importance of IS quality for management accountants’ practice and simultaneously provides new insights regarding the efficacy of selected determinants of IS quality.

Management Accounting and Analysis of the Financial Lease Effectiveness

The successful strategic management of organization’s resources is chiefly defined by the extent of implementation of the management accounting in its operations. Management accounting data is essential for economic analysis of the factors, which are of great significance to saving resources spent on financial lease, and acquiring the maximum effect from their utilization. The article substantiates the necessity of periodic updating of analytical methods for defining the effectiveness of financial lease of long-term assets, in order to improve the accuracy of the estimations of such methods. The already existing analytical methods objectively require constant enhancements due to the increase in quality and transparency of the management analysis database. The aim of the conducted research is to create a method for analyzing the effectiveness of financial lease, based on the estimations, gathered from the current requirements of International Financial Reporting Standards. The authors of the study suggest the effect of the financial leasing agreement to be defined as the difference between the potential costs of the enterprise receiving the property when acquiring fixed assets under a financial lease agreement and the potential costs of the borrowing enterprise when acquiring property under a purchase or sale contract at the expense of a loan. Comparative effectiveness of a financial lease is offered to be defined as a ratio of the lease contract effect to the potential expenses of the recipient of the leased property.

ОТДЕЛЬНЫЕ МЕТОДОЛОГИЧЕСКИЕ ПОДХОДЫ К ОРГАНИЗАЦИИ ЭКОНОМИЧЕСКОЙ БЕЗОПАСНОСТИ ПРЕДПРИЯТИЙ

The article substantiates the need to build a system of economic security of an en-terprise. It also reveals the main methodological approaches, the conceptual ap-paratus of the economic security of the enterprise, identifies the main tasks of ac-counting information in the system of economic security of the enterprise. The importance of attracting the economic security service when developing require-ments for enhancing the economic security of an information system is noted, since, in addition to accounting and management accounting data, it also contains non-financial information information on production volumes, product quality, marriages, major suppliers and customers, technical regulations and so on.

ОБЛІКОВО-АНАЛІТИЧНІ АСПЕКТИ ФОРМУВАННЯ ІНФОРМАЦІЙНОГО ЗАБЕЗПЕЧЕННЯ УПРАВЛІННЯ ГРОШОВИМИ ПОТОКАМИ

The article is devoted to the study of the essence of cash flows and their accounting and analytical support. The urgency of solving issues of information support for cash flow management is substantiated, taking into account the current conditions of economic development and factors influencing the movement of cash resources. Using previous work, the authors of the article proposed their vision for the definition of «cash flows» as a set of all types of cash assets that serve the enterprise, are transformed and ensure its continuous operation. Classification is improved taking into account modern business conditions on the basis of non-cash. Accounting and analytical support for the formation of information in the cash flow management system is developed, which has a separate accounting and analytical component. The necessity of carrying out the administrative analysis of cash flows of the enterprise on the basis of a technique based on implementation of analytical procedures of the relevant information and acceptance of the corresponding administrative decisions is proved. According to the authors, accounting and analytical support of cash flows is a system that is based on financial and management accounting data as an informative basis for their analysis, is part of the overall process of managing the activities of the enterprise. The proposed system of accountingиand analytical support is focused on solving problems of cash flow management and control, which are the subject of interest of opportunistic managers. When developing forms of management reporting and methods of analysis, the tasks to be solved should take into account the interests of the owners. Further research is proposed to develop a methodological approach to management analysis of cash flows and search for key indicators to assess the level of efficiency of generating cash resources of the enterprise to avoid agency conflicts.