2.3 Objects of managerial accounting

Subject of management is process of impact on object or management process for the purpose of the organization and is coordinate activity of people for achievement of maximum efficiency of production. Management realizes influence regarding management by means of planning, the organization, stimulation and control coordinating. Such functions are carried out by management accounting, forming the system which answers the purposes and problems of management.

Now there are no accurate definitions of a subject of management accounting. Authors while are limited to a statement of understanding of essence of accounting in general and administrative in particular. Meanwhile systems change and methods of control over enterprise activity, respectively change procedures and the content of management accounting. Especially it concerns modeling of the accounting of expenses and the income at the enterprises with different organizational structure, influences of changing external factors (inflation, industry restructuring, etc.). From there are changes in the list of objects and subjects of management[6].

The science theory about management forms the concept and about a subject of management accounting. As subject of management accounting in a general view set of objects in the course of all cycle of production management acts. Its numerous objects which can be united in two groups open the maintenance of a subject:

- the production resources providing expedient work of people in the course of economic activity of the enterprise;

- economic processes and their results making in total a production activity of the enterprise.

A part of production resources are:

• fixed assets — it is means of labor (cars, the equipment, production buildings, etc.), their state and use;

• intangible assets — objects of a long-term investment (a right of use of the earth, standards, licenses, trademarks etc.),

• material resources - the objects of the labor intended for processing in the course of production by means of means of labor.

These resources in management accounting are presented by production stocks in enterprise warehouses, and storerooms of shops and on sites, warehouses of production department and in the course of their movement but a stage of a production cycle to finished goods warehouse. They include raw materials as a product of extracting industries, agriculture; the materials which have undergone preliminary processing both at the enterprise, and on others (semi-finished products — preparations, forgings, castings, details, knots, etc.);

manpower — the mass of live work which the enterprise at present, use of a manpower in the course of expedient activity and result of work has.

The following kinds of activity belong to the second group of objects of management accounting;

* supplying and procuring activity — acquisition storage, ensuring production with raw material resources, auxiliary materials and the production equipment with the spare parts intended for its contents and repair, the marketing activity connected with supplying processes;

* a production activity — the processes caused by the production technology of production, including main and auxiliary operations; operations on improvement let out and development of new products;

* financial and marketing activity - market researches and operations on formation of a sales market of production; directly marketing operations, including packing" transportation and other types of works; the operations promoting growth of sales volume, since advertising of a product and finishing establishment of direct connections with consumers, products quality control;

* organizational activity — creation of organizational structure of the enterprise, articulation from system of the enterprise of functional departments, services, shops, sites; the organization of information system at the enterprise with a straight line and feedback meeting the requirements of internal communications between the structural divisions, different levels of the management, corresponding to functions of planning, control, an assessment of implementation of the plan, stimulation; operations of coordinating of actions of the internal performers directed on performance of a main objective of the enterprise. Other group of objects of management accounting can be chosen, but anyway it has to answered main objectives of management.

Chapter 3. Features of the organization of managerial accounting in JSC «Milland»