On the important role of management accounting in enterprise management

On the important role of management accounting in enterprise management

Abstract: Management accounting is also called? Internal accounting? , refers to the enterprise's current and future capital movement as the object, in order to improve economic efficiency for the purpose of providing management decisions for internal managers of enterprises, which consists of two parts: cost accounting and management control system. Let's examine the important role of management accounting in enterprise management by studying its development, functions and objectives.

Keywords: management accounting management important role

First, the development history of management accounting

1, the origin of management accounting techniques and methods

The origin of management accounting can be traced back to1the application of internal measurement in the early 9th century. At that time, the most representative method was the cost accounting method used by railway companies. This method records and summarizes cash transactions, prepares a summary cost financial analysis report, and conducts business statistical analysis. At this time, the cost control is only limited to the control of direct costs such as direct labor and direct materials, and the influence of indirect costs on costs is not considered.

2. The rapid development of cost accounting.

Taylor and others pioneered the method of allocating indirect manufacturing expenses to product costs, thus forming a scientific internal accounting management method with expense budget, standard cost method and variance analysis as the main means. At the same time, the concept and application of cost accounting have been deeply studied in academic circles. Opportunity cost? This term is also widely introduced from economics. In this period, cost accounting system and financial accounting system have begun to be independent of each other, and cost information has been used by production departments to evaluate production efficiency, make pricing decisions, and control and motivate employees' performance.

3. The application of management accounting control methods: the rise of cost control practice.

In this regard, DuPont's innovation in management control methods is the most valuable. Among many basic management techniques and methods, the most important and lasting one is DuPont analysis system promoted by DuPont company. Dupont analysis, which is often used, is a classic method to evaluate the profitability of the company and the return level of shareholders' equity, and to evaluate the performance of the company from the financial point of view. Its basic idea is to decompose the net profit rate of an enterprise into three indicators: the net profit rate of sales, the turnover rate of total assets and the equity multiplier.

This indicator analyzes finance from two angles: one is to analyze internal management factors; Secondly, the capital structure and risk are analyzed. Through this indicator, all departments can understand how their performance affects the company's total assets turnover rate or net sales rate, and then affect the overall net investment rate. And by setting up incentive and profit sharing plan, the concept of profit is transferred from departmental profit to company profit.

The application of these management accounting control technologies and methods has promoted the development of enterprise management accounting and made its management control system more perfect. Judging from the development history of management accounting in China, the introduction of western management accounting in China began in the late 1970s, when it was called? Responsibility accounting? After the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, responsibility accounting system with China characteristics has been widely used, such as the target and responsibility price control method in the factory. The successful experiences are: implemented by Hangang Group Co., Ltd.? Simulate market accounting and implement cost veto? . With the rapid development of economy, management accounting is paid more and more attention and occupies an important position in the field of enterprise management. It is precisely because of the rapid development of management accounting that the function of traditional accounting is not satisfied with its operation, and the accounting function has expanded from the original function of reflection and supervision to four functions of planning, organization, control and evaluation.

The function of management accounting: (1) The function of planning is mainly to make scientific prediction and analysis by using historical data, to help management make economic decisions, to prepare company plans and responsibility budgets, and to determine work objectives; (2) The function of the organization is to design and formulate a reasonable and effective responsibility accounting system and specific workflow in combination with the actual operation of the company, and optimize the company's manpower, financial resources and material resources; (3) The function of control is mainly to collect, sort out, compare and analyze the data that is expected to happen or will happen, so as to adjust and control in advance and ensure the completion according to the planned objectives; (4) The evaluation function is mainly to compare the actual data with the budget according to the performance report afterwards, and evaluate and examine the performance of each responsible unit.

Second, the necessity of application of management accounting in enterprise management

1, the basic goal of management accounting

The basic goal of management accounting is to help management make decisions on the optimal utilization of resources, and management accounting is to help management make decisions on improving enterprise management and improving economic and social benefits. Through the prediction and confirmation of various economic targets such as profit target, target income and target cost, the management authorities are assisted to make short-term or long-term decisions on major economic issues during the planning period, and on this basis, the optimal allocation of resources, comprehensive budget and responsibility budget are compiled to fully mobilize the enthusiasm and subjective initiative of employees, so that they can exchange the minimum resource consumption for the maximum return on investment.

2, the importance of cost management

In recent years, with the steady development of the world economy, the most challenging problem faced by enterprise managers is not? How to succeed? But? How to continue to succeed? The cost control and management of enterprises have attracted great attention, which is one of the key factors for the sustainable success of enterprises. China's manufacturing industry and even the world's manufacturing industry have entered the era of meager profit, and now China's manufacturing industry is facing increasingly fierce market competition. Compared with the international level, China's manufacturing industry has a serious waste of resources, high input and low output, and product homogeneity is common. Only by relying on the advantages of quality and cost can enterprises truly win. The manufacturing cost in China is much higher than the international average except for the labor cost.

3. The key role of management accounting in reducing costs and improving profits.

The external environment is beyond the control of the enterprise itself, and enterprise management can only start from the inside. Throughout the world, enterprises all over the world are vigorously applying management accounting to pursue how to improve profits and reduce costs. On the basis of strengthening cost management and control, management accounting has made a lot of progress than simple cost management. Management accounting includes cost management (cost accounting). Of course, the lower the cost, the better, and it is not just the content of cost management. It also pays attention to modern quality management such as TQM and Six Sigma and modern manufacturing technologies such as JIT, lean production and agile manufacturing, which can improve the income of enterprises. Management accounting also calculates the quality cost for quality management.

Management accounting is an internal accounting that combines management and accounting. Different from other external accountants, it can solve the following problems for customers: (1) Determine the sales strategy by analyzing the turnover and profits of different consumer groups, different business districts, different sales combinations and different business models; (2) New product development and promotion, how to design, develop and promote new products under the premise of ensuring the company's profit target, and realize the company's established profits under the condition of effectively controlling the cost of new products; Decide the promotion strategy of the company; (3) How to gradually reduce direct materials, direct labor costs and various direct and indirect costs, reduce the total cost of the company from a strategic height, and improve the overall profitability of the company. Determine the company's profit strategy.

Third, the application practice of management accounting

Most foreign manufacturing enterprises have implemented activity-based cost management (ABCM). ABCM is used for strategy, tactics, daily operation management and business process improvement, and it is a more refined strategic cost management. Activity-based costing management and balanced scorecard are two core themes of management accounting today. To sum up, speaking by numbers, which department of the company has good performance and which department has poor performance, through SWOT analysis, comprehensively summarize all aspects, analyze advantages, opportunities and threats, and make the right choice.