Current accounting. Its main task: control of the current activities of the company, analysis of results and search for problems. For example, at the end of the month, the demand for goods for the last two months and understands what to buy for the next two months. In this case, the entrepreneur keeps current accounting.
The purpose of such accounting is to draw
A company work plan for a year or several years ahead. For senegal phone number library example, a company wants to enter a new market. To choose a market and determine the direction of business development, it is necessary to analyze the state of the business, market trends, and the specifics of the niche in the country.
Depending on the type of tasks, there are three types of accounting.
Production. The introduction of management accounting helps to control the work of production, analyze its efficiency, costs and make decisions about what goods to produce or what useful technologies to implement.
Marginal. Used to analyze the profitability of goods and services, determine the break-even point. Such management accounting helps optimize expenses, make decisions on pricing and assortment.
Budgetary. Budgeting is used to create a budget of income and expenses. Budgetary management accounting allows you to ensure the financial stability of the company.
All of these types of management accounting
Can complement each other. This allows you to get a the owner of an online store analyzes complete picture of how your business is doing, so that managers can make decisions based on specific numbers rather than personal feelings.
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Management accounting methodologies
There are many methods of management accounting, we will talk about three main ones:
Process accounting
Costs are calculated for individual production processes. This method of accounting is used in companies with mass production and a small number snbd host of types of goods.
Process accounting. This option is used to account for costs in production, where raw materials undergo several stages of processing. For example, the method is used in the oil refining industry.
Job-based accounting. Costs are calculated for each individual order or project. This accounting methodology is used in companies with individual production. It is suitable if the company produces goods strictly in small batches or offers exclusive services.