The reporting format of managerial accounting by main business processes in trading enterprises
DOI:
https://doi.org/10.35774/visnyk2019.02.134Keywords:
operational activity, managerial accounting, business process, management accounting reporting, responsibility centre.Abstract
Introduction. Today’s increased competition and deepening process of globalization have raised the issue of information provision of managers at all levels of management, particularly accurate and timely information on financial and economic performance of enterprises. For making effective managerial decisions, managers do not only need financial information, but also non-financial information that is found in managerial accounting reports. Therefore, this is an up-to-date issue, which should be further considered.
Purpose. The purpose of the study is to examine types of the reporting format of managerial accounting in foreign and national economic studies and to concentrate on managerial accounting reporting by main business processes in trading enterprises.
Methods. The methods used for exploring issues relevant to preparing managerial accounting reports are based on general and specific approaches to examining economic processes, phenomena and facts, particularly those that are relative to budgetary performance of purchasing departments, transportation, storing an selling in trading enterprises. The key methods applied include the following: the monographic and graphic methods; the method of grouping and comparison of indicators; analysis of the dynamics and structure of expenses; modeling and budgeting of expenses of main processes in trading enterprises; planning steps for improving managerial reporting.
Results. Budgetary performance plays an important role in managerial accounting. Therefore, separate reports by the main business processes in trading enterprises are supposed to be prepared, namely on purchasing, transportation, storing and selling. The organizational structure of trading enterprises, types and total sales volumes, and other specific features of the trading industry have a significant impact on centres of responsibility, and therefore, on types and structure of managerial accounting reporting. The process of preparing reports on budgetary performance involves determining items of expenditure specific for each department of a trading enterprise and its activity.
Discussion. Further research efforts should be aimed at improving managerial accounting reports with respect to budgetary performance, particularly at developing a ‘Consolidated Record of Financial Results from Selling Goods by Direct-Cost System’. The authors argue that the format of consolidated record of financial results from selling goods can be applicable to other systems. Such a consolidated record can serve as a basis for preparing ‘The Trading Company Performance Report”. This practice should be introduced in trading enterprises in line with specific characteristics of their financial and economic activities.
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