Profit center. Investment center Responsibility center structural unit

8.1. Construction of management accounting by responsibility centers

Identification of cost centers and responsibility centers is the basis of analytical management accounting in a construction organization. There are different classifications and names of responsibility centers depending on the application areas. We will consider existing approaches to building management accounting by responsibility centers.

Under responsibility center It is customary to understand a structural unit that carries out economic activities, headed by a leader (manager) who has a direct impact on the results of this activity and is responsible for them.

The classification of responsibility centers is based on the criterion of the economic responsibility of managers, which is determined by the breadth of powers granted to them. The basis for the formation of responsibility centers is the organizational structure of management of a construction organization. Depending on the scope of powers and responsibilities of the manager, centers of cost, income, profit, capital investments and investments, control and management, etc. are distinguished (Fig. 8.1).

Rice. 8.1. Classification of responsibility centers

Let's consider the centers of economic responsibility in the main areas of activity. Let's start with cost center, whose manager has the least managerial authority and bears the least responsibility for the results obtained.

Cost Center – This is a responsibility center whose manager controls costs, but does not control profits and other economic indicators.

A cost center can coincide with an organizational unit (shop) or be part of it as a department (section). Some business units may have two or more cost centers. The basis for identifying cost centers is the unity of the equipment used, operations or functions performed. The cost center accounting system aims only to measure and record costs at the input to the responsibility center. The results of the activity of the responsibility center (volume of products produced, services provided, work performed) are not taken into account, especially since in many cases it is either impossible to measure them or there is no need for it.

In other words, a cost center is a structural unit in which rationing, planning and cost accounting can be organized in order to monitor, control and manage the costs of production resources, as well as evaluate their use. The center manager is responsible for the cost level.

Many construction organizations make the mistake of evaluating a cost center solely on its ability to control and reduce costs. For example, the head of the procurement department, who is responsible for the selection of suppliers and the price of materials, is also responsible for their quality. Managers are doing the right thing when they evaluate the performance of a cost center by its contribution to the success of the construction organization (timely execution of contracts, compliance with corporate ethical and economic obligations, employee safety).

When defining cost center objectives, consider the following:

Each center should be the responsibility of a foreman or department head, who will assist the organization's management in planning and cost control;

Each center must combine construction machines and jobs, the costs of which are homogeneous. This makes it easier to determine the factors influencing the amount of expenses of a given center and to select the basis for distributing expenses among cost carriers. Since the main factor determining the amount of costs at production sites is capacity utilization, it is most often chosen as the basis for cost distribution in the centers. At the same time, at each production site, the utilization of production capacity should be as uniform as possible, which requires a deeper division of the organization into cost centers;

All costs should be written off to cost centers without much difficulty. As the division of an organization into cost centers deepens, the share of costs that are common to several cost centers increases, which necessitates their distribution.

Revenue Center- This is a responsibility center whose manager is responsible for generating income, but not for costs. The activities of the heads of such departments in the cost management system are assessed on the basis of the revenue received or the amount of internal income, so the accounting task in this case will be to record the results of the activity of the responsibility center at the output. This does not mean that the departments do not have expenses, but the costs of maintaining them are not comparable to the amount of revenue they control. A revenue center is usually formed in sales departments that are responsible for revenue from sales in their divisions or even market areas.

Revenue center managers, like cost center managers, may be responsible for achieving non-financial goals, such as ensuring competition in markets where the firm ranks first or second in sales. Some revenue centers control prices, the range of construction products and sales promotion activities.

Since the performance of a construction organization can be determined only by the size of profit, which is not the goal of managers of cost and income centers, profit and investment centers are often found in cost management systems of organizations.

Profit Center – This is a division whose head is responsible for the income and expenses of his division. The profit center manager makes decisions on the amount of resources consumed and the amount of expected revenue. The criterion for evaluating the activities of such a center is the amount of profit received. Therefore, accounting should provide information about the cost of costs at the entrance to the responsibility center, about the costs within it, as well as about the final results of the unit’s activities at the output. The profit of a responsibility center in a cost management system can be calculated in different ways. Sometimes only direct costs are included in the calculations, in other cases indirect costs are included (in whole or in part).

A profit center operates similarly to an independent business. The difference is that the level of investment in the responsibility center is controlled by the management of construction organizations, and not by the center manager. For example, if the head of the mechanization section of a construction company has the authority to make decisions on prices for the services it provides, promotion of these services, selection of suppliers of spare parts, fuel, oil, tires, etc., then this section can be rated as a center arrived.

Income and profit centers differ as parts and as wholes. Profit center managers (unlike cost center managers) are not interested in reducing the quality of products, since this will reduce their income, and therefore the profit by which the effectiveness of their work is assessed. The goal of this center is to obtain maximum profit through the optimal combination of its defining elements: sales volume, selling prices, variable and fixed costs.

Profit center managers, as in previous cases, may be responsible for achieving certain non-financial results (satisfying customer requests, etc.). Controlled revenues are not limited to sales revenues, they cover all incoming revenues.

The structure of profit centers is more complex than that of revenue centers. Profit centers consist of several cost responsibility centers and one or more revenue centers. They are formed in separate structural divisions that do not have the status of a legal entity, but have a production cycle and a sales cycle for construction products or a cycle for the purchase and sale of goods with the right to set purchase and sale prices in a certain range.

Capital investment (investment) centers– divisions of organizations in the investment and construction sector, whose managers control not only the costs and income of their departments, but also the efficiency of using the funds invested in them. An investment center can be compared to an independent business; as a rule, it is allocated in construction organizations with a high degree of decentralization.

Heads of investment centers (capital investments) have the greatest authority in management: they are delegated the right to make investment decisions, that is, to distribute allocated funds among projects. These centers work with a capital budget or plan for the expected costs of acquiring long-term assets and the means to finance these acquisitions (Table 8.1).

Table 8.1

Characteristics of responsibility centers

Based on their tasks and functions, business responsibility centers are usually classified as main, auxiliary and auxiliary. The main centers of responsibility produce construction products, for the production of which structural divisions are created, auxiliary ones are intended for the production of products and services that meet the needs of the main production.

In relation to the production process there are production And serving cost centers .

TO production include workshops, sections, teams, service departments and management services, warehouses, laboratories, etc.

The degree of detail of cost centers in various construction organizations depends on the goals and objectives set by management for the cost control manager assigned to the responsibility center. Typically, the degree of responsibility increases with the size of the cost center.

Responsibility centers are created for a clearer organization of control and regulation of costs as a management function, ensuring personalized responsibility for the level of individual expenses and expenses in the organization. The essence of this process is to compare the achieved results with the planned ones (or with the norms), analyze the causes of deviations, establish responsibility for them and take the necessary measures.

Each responsibility center is part of the company's management system and has an input and an output. Input is raw materials, materials, semi-finished products, labor costs and various services. The responsibility center uses these resources to complete the assigned work. The output of the responsibility center is products (products and services) that go to another responsibility center or are sold externally to external customers. The activities of each such center can be assessed in terms of efficiency. Although the resources necessary for the production of products (works, services) are mostly in physical form, for management control they are presented in monetary terms in order to combine physically dissimilar elements. The monetary measurement of resources is their cost. In addition to cost information, non-accounting information is used on such issues as the physical quantity of materials used, their quality, and the professional level of the workforce.

If the responsibility center's output is sold to external customers, the output is measured as revenue. Goods or services transferred to other organizational responsibility centers are measured either in monetary terms (for example, as the cost of the transferred goods or services) or in non-monetary terms (number of units of production).

In the domestic economy, construction organizations are represented mainly cost or income centers, at best, profit centers; investment centers are extremely rare.

In management accounting practice, the concept of “financial responsibility center” (FRC) is widely used. This is a structural unit that bears responsibility for financial results. The selection of a central federal district is the first step towards creating a budgeting system. The types of financial responsibility centers are similar to the types of economic responsibility centers:

The Investment Center has the right to manage working and non-working capital, including making investments;

The profit center is responsible for the volume of profit;

The contribution margin center is responsible for the difference between revenue and variable costs;

The income (revenue) center is responsible for the income it brings to the organization in the course of its activities;

The cost center is responsible only for the costs incurred.

It is also possible to group responsibility centers according to other characteristics, for example, by level of management: corporate, intra-company structural divisions.

According to the principle of efficiency, the optimal solution will be the one that allows you to get the maximum result for a certain level of investment. The main task responsibility centers - to minimize the investments required to achieve a given result.

Financial indicators are not enough to evaluate the performance of a cost center. This approach can lead to cost savings at the expense of reduced product quality. Therefore, when forming the structure of a construction organization solely as a set of cost centers, it is necessary to provide for additional quality control of manufactured construction products in the cost management system.

To ensure controllability of the cost level, it is important to plan and take into account only those costs at the center that can be effectively influenced by its manager. Sharing of responsibilities is possible. For example, the cost of materials depends not only on their quantity (the head of the production department is responsible for this), but also on the price (the responsibility lies with the supply department employee). When identifying deviations of actual costs from planned ones, responsibility should be personalized, since a person not authorized to control these costs cannot be responsible for their level.

For economic reasons, responsibility centers can be formed as self-supporting and analytical. Analytical the centers are not economically isolated - they are not connected with the internal economic accounting system. They provide analytical accounting and detailing of responsibility for individual costs. Self-supporting centers exercise control, are responsible for costs and are interested in reducing them. Separate analytical accounting is not maintained for self-accounting responsibility centers, but information is used based on where costs arise.

The feasibility of a particular type of cost is determined by the people participating in the management process. A responsibility center is a structural element of a construction organization, its economic entity, within which the manager is responsible for expenses incurred. The manager decides how to classify costs, how much to detail where they arise, and how to link them to responsibility centers.

Cost management by responsibility centers can be considered as a method of intra-company entrepreneurship, since their principles are similar:

Compliance with the technical and technological features of a specific construction industry;

Providing structural units with independence by delegating rights and responsibilities for the occurrence of costs, receipt of income, and use of investment resources (giving them the status of responsibility centers of a certain type);

Personification of all elements of the intra-company entrepreneurship system (determination of controllable cost and income items);

Selection of approved and estimated indicators, etc.;

Organization of activities of structural units based on plans;

Comparison of all costs incurred by the center with the results achieved;

Systematicity;

Compliance of information support with management needs (regulatory framework, relevant document flow, adequate software products and their technical support).

In most organizations, there is a division of managerial responsibility for tasks within an overall management structure. This division often has a hierarchical structure, in which three levels are conventionally distinguished:

1. Lower level. A manager at this level is responsible for operational decisions on the development, coordination and implementation of the production (work) plan for his department. In this regard, it is recommended to generate reports to provide managers with operational management information, starting from the lower level of responsibility, at which they can directly influence the results of work.

Low-level planning involves obtaining very detailed information relevant to the current moment. The decisions made are short-term; they relate to accounts receivable and payable, wages, implementation of the work schedule (plan), identification and analysis of deviations of actual results from planned ones.

2. Average level. Here, issues of effective use of resources to achieve better results are considered, decisions are made regarding purchases, location (storage) of stocks of raw materials, materials and finished products, sales (based on the results of the analysis) and cash flow forecasts.

3. Highest level. Responsibility centers are focused on strategic planning, which involves making decisions about the organization as a whole for the long term and determining the directions of its development. Decisions are made regarding investments in certain projects, entering new markets (developing potential markets), forecasting and budgeting.

Operational information intended for responsibility centers at different levels should not be duplicated. Goals and objectives, including accounting ones, are determined for each center. It is necessary to indicate what information, with what frequency, where and by whom should be transmitted. The work must be aimed at finding the necessary information and providing it to decision makers when they need it, and in a form that makes it practical for practical use.

Based on economic considerations and the possibilities of delineating responsibilities, we can give a reasonable description of any center of responsibility.

Management Accounting by responsibility center allows:

Simplify the procedure for maintaining synthetic and analytical accounting by accumulating information on deviation accounts;

Create conditions for generating reporting on needs;

Increase the validity of management decisions.

Problem assessment of structural divisions in a construction organization usually comes down to the selection of indicators that best characterize the activities of the department, as well as the assessment of the implementation of planned targets and compliance with established norms and standards for these indicators.

1.2.2 CENTERS OF RESPONSIBILITY

The organization of budgeting depends on industry characteristics, technology and organization of the production process, methods of processing raw materials, the composition of manufactured products, the level of technical equipment and other factors and corresponds to the characteristics of the organizational structure of the organization (see 1.2.3).

Responsibility Center (RC)– a structural unit of an enterprise, the head of which is vested with the right to make decisions on the use of enterprise resources (material, labor, financial) and is responsible for the implementation of established plans and benchmarks. Products (services) of a responsibility center go to another responsibility center or are sold externally.

Organization of budgeting depending on the scale of activity:

Small enterprises: directly by the manager,

Medium-sized enterprises: a group of heads of departments (responsibility centers) and the head of the financial service;

Large enterprises: the budget committee is a collegial body consisting of functional structures that develop budgets (budget centers).

FUNCTIONS OF BUDGET CENTERS

1) Conversion of strategic budgets into operational ones, i.e. transforming the organization's strategic goals into a series of operating budgets.

2) Organization of work meetings.

3) Approval of functional budgets and their consolidation into a consolidated budget.

4) Review of reports on budget implementation and analysis of significant deviations (in absolute and relative terms).

5) Conflict resolution. For example, the distribution of personal responsibility of managers, the impossibility of assessing the results of the activities of individual departments (image), the reality of meeting standards.

The budget system for responsibility centers should make it possible to obtain and analyze information for accounting and costing, control and stimulation of the activities of managers and the departments themselves.

COST CENTER

– a separate structural unit of an enterprise in which it is possible to organize standardization, planning and accounting of production costs in order to monitor, control and manage the costs of production resources, as well as evaluate their use. The head of the cost center is responsible for the costs of the structural unit.

There are two types of cost centers:

A) Center for standardized costs (regulated): the optimal relationship between costs and output volume is established (for each unit of output the required amount of materials and work is determined). For example, a production workshop has standards for material consumption and standard labor intensity.

Example: production structural divisions (main and auxiliary production workshops).

The head of the regulated cost center is responsible for minimizing costs per unit of output, and his activities are assessed by comparing planned (standard) and actual costs per unit of output.

B) Center of non-standardized costs (arbitrary): The costs of the non-standardized cost center are constant with respect to output.The bulk of expenses in these departments are often staff costs.

Example: production units and functional services, units performing administrative, representative, financial, legal functions, marketing, research and development, design bureaus, chemical and technical control laboratories, etc., whose tasks do not include generating income.

Example. The “Financial Department” cost center includes the “Accounting” central zone, the “Financial Analysis Department” central zone, and the “Financial Control” central zone.

INCOME CENTER

– a division responsible for the enterprise’s receipt of income, in particular revenue.

Head of CD:

1) is not responsible for the use of resources (except for the costs of maintaining its unit);

2) is responsible for the income of the structural unit

Typically, the commercial (sales) departments of the enterprise (wholesale base, chain of branded stores, etc.) become the center of income.

A classic example of a revenue center is the sales department, whose tasks include attracting new customers and increasing the volume of product sales. The sales department is also a cost center (incurs costs for wages, hospitality, office supplies, etc.) However, since the sales function dominates, the department should be considered primarily as a revenue center. If the organization’s source of income is consulting, auditing, outsourcing services, then the CD “Financial Department”, the CD “Accounting”, the CD “Financial Control”.

When forming Income Centers, you must adhere to the following rules: CD can be a separate element; The CD can be a consolidating income CFD; The central control and central control of the same structural unit can be at the same hierarchical level

In enterprises with a complex organizational structure (holdings, financial industrial groups) with a developed spatial organization and product line of goods and services, Marginal Income Centers are created when building a financial structure.

Margin Centers bear responsibility for the amount of marginal income received2. They are created at those enterprises where there are divisions (business areas) that are complex in structure and activity. Such divisions carry out not one production (as cost centers) and not one trade (as an income center), but a full or almost complete cycle of production and sales of products of a certain range. Thus, they control the income and expenses of their area and can be responsible for the effectiveness of their activities as a whole. The measure of efficiency is no longer the income and costs of a direction separately, but the difference between them.

It makes sense to allocate CMD if the enterprise has several independent businesses or areas and CMD has a contribution to cover general company expenses. That is, an independent business unit independently controls the income and expenditure parts of its area.

A DMD is created from at least one CD and a DZ. For example. The “Sales” data center includes the “Sales-glass” data center, the “Sales-metal” data center and the “Logistics” data center (common for metal and glass).

PROFIT CENTER

- a division in which income can be clearly compared with expenses, and the head of which is responsible for the financial performance of all activities of the division. The head of the profit center controls prices, volume

2 marginal profit, gross profit, net income, markup

production and sales, as well as costs. The main controlled indicator is profit.

A profit center can only be a division or business whose result (profit) is not affected by the costs/income of other divisions or businesses. It is not practical to identify profit centers in cases where individual segments within the same organization must collaborate. Managers' desire for financial performance of their CPU can jeopardize the financial performance of the entire organization.

It is also inappropriate to identify divisions that provide services within the organization or transfer their products to other divisions along the technological chain as profit centers. This can only be done with an extensive system of internal (transfer) pricing, when divisions transfer the product to each other at an internal price. However, this is not without problems - transfer pricing within one company can cause interpersonal conflicts, especially in cases where the transfer price is close to the cost, and the share of the total profit from the sale of products that falls on this division is determined by the top management by their strong-willed decision.

The CPU can consist of at least one central zone and one central data center; in such cases, a digital data center is not created.

INVESTMENT CENTER

– a structural unit for which it is possible to clearly identify the return on previously made capital and financial investments. In CI, it is advisable to highlight new business areas or projects that require initial investments. The CI must consist of at least one CPU or several CIs.

The first three responsibility centers we examined (cost, income and profit centers) can be combined into one category - the results of their work affect the profitability (in the accounting sense of the term) of the organization. The responsibility of the investment center is of a completely different kind - the results of CI activities affect the structure of cash flows, and therefore the solvency of the organization.

VENTURE CENTER (VENTURE CENTER)

– a structural unit of an enterprise that implements an innovative project and has targeted funding. Before being brought to the commercial level, such a center is actually a cost center, and after that it is a profit (or investment) center.

In the structure of an organization there cannot be only one responsibility center

In the enterprise management system, along with the organizational structure, the financial structure of the company is distinguished. Financial structure is the result of structuring an enterprise and information about it not at all on the basis of financial flows, but on the basis of the nature of the financial responsibility of a particular unit. To a large extent, financial divisions correspond to the structural divisions assigned to the enterprise and are called Financial Responsibility Centers (FRC).

The effectiveness of a responsibility center is determined by two parameters.

Topic: Answers to tests on management accounting

Type: Test | Size: 29.43K | Downloads: 298 | Added 06/03/10 at 08:13 | Rating: +13 | More Tests

Question 1. Marginal income is:

1. the amount of excess of actual profit over the amount of payments to the budget from actual profit

2. the amount of excess of the standard value of costs over their actual value

Answer: 3. the amount of excess sales revenue over the amount of variable costs in the cost price

products sold

Question 2. The creation of responsibility centers allows large enterprises to:

Answer: 1. decentralize responsibility for profits

2. exercise control over labor discipline

3. monitor safety precautions and environmental pollution

(Sheremet A.D. r. 17, 17.3)

Question 3. Management accounting differs from financial accounting in that it serves:

Answer: 1. For internal users, provides management with information for

planning, actual management and control over the activities of the organization.

2. For external users.

3. Provides the management apparatus with information for planning, actual management and control

for the activities of the organization.

Financial accounting reflects the presence and movement of all product inventories, and management accounting

reflects the systematic process of formation of costs in the production of all products and costs

individual products, control over the reduction of production costs, identification of reserves for its reduction.

Question 4. Organization of management accounting at an enterprise:

Answer: 1. depends on the decision of the administration

2. strictly required

3. not required for all types of enterprises

Question 5. Sources of information for management accounting, in contrast to financial accounting, can be:

Answer: 1. Production accounting data, operational accounting data, any accounting documents or

documents developed in the organization related to costs and cost calculation.

2. Any accounting documents or documents developed in the organization related to costs and

costing.

3. Production accounting data, operational accounting data.

clause 19 of the Regulations on accounting and financial reporting in the Russian Federation

Question 6. Is it true that the “standard-cost” system is most effective when used

flexible budgets

Answer: 2. Yes.

Question 7. The main object of management accounting is:

1. Cost carriers (product) or products released from production in the reporting month, or

“commodity” output, as well as work in progress.

2. Place of cost occurrence (workshop).

Answer: 3. Place of origin of costs (workshop), cost carriers (product) or products released from production in the reporting month, or “commodity” output, as well as work in progress;

Place of origin - when production costs are grouped and accounted for by structural units and

divisions in which the initial consumption of production resources occurs; carriers

costs - when production costs are grouped and accounted for by type

products (works, services) intended for sale on the market

Question 8. Which standard cost accounting option can an organization choose:

1. Option according to form No. 4

2. Option according to form No. 1

Answer: 3. There is one normative method and no more.

Question 9. An accounting system for responsibility centers is necessary in the following conditions:

1. only standard

2. only normative

Answer: 3. Either normative or standard.

Question 10. The advantages of using the “standard-cost” system are that it:

1. Monitors the activities of the enterprise.

Answer: 2. Plans and controls the activities of the enterprise.

3. Plans the activities of the enterprise.

Question 11. First in the operational planning procedure:

1. Budget of income and expenses

2. Production plan

Answer: 3. Sales plan

4. Investment budget (Capital Expenditure Plan)

5. Cash flow budget (Cash flow plan)

Question 12. Financial reporting centers are:

Answer: 1. structural units of the enterprise for which plans are formed and which report for

results of their implementation

2. structural units of the enterprise that report on the cash balance

Question 13. The responsibility center is:

Answer: 1. Structural units that are allocated certain powers and are responsible for

making decisions.

2. Structural units responsible for decision making.

3. Structural units that are allocated certain powers.

Question 14. Standard costs are:

1. taken into account according to the standards of resource consumption.

Answer: 2. taken into account according to the norms or standard values ​​of the resource consumed.

3. taken into account according to standards.

Question 15. What accounting system does management accounting use?

1. An analysis system that integrates various subsystems and management methods and subordinates them

achieving one goal.

2. A control system that integrates various subsystems and management methods and subordinates them

achieving one goal.

Answer: 3. A production management system that integrates various subsystems and methods

management and subordinates them to the achievement of one goal.

Management accounting - a system of accounting, planning, control, analysis of income and expenses and results

economic activities in the necessary analytical aspects, prompt adoption of various management

decisions and for the purpose of optimizing the financial results of the enterprise in the short-term and

long term prospects.

Question 16. In the “standard - cost” system, expenses in excess of established standards include:

1. On the financial result of expenses.

Answer: 2. On the financial result of the period in which expenses were incurred.

Question 17. Costing units are:

1. type of product (part of a product, group of products) of varying degrees of readiness

Answer: 2. quantitative measure of the calculation object

3. finished product

Selecting costing objects and costing units

Question 18. What measures does management accounting use?

1. natural and cash

2. natural and labor

Answer: 3. natural, labor, monetary

Management accounting specialists use all types of meters in their work: natural,

labor, money.

Question 19. Cost items are considered variable:

1. Which are indirectly related to changes in production volume.

Answer: 2. Which are directly related to changes in production volume.

3. Which are associated with changes in production volume.

Question 20. What are the objectives of management accounting?

1. generation of reliable and complete information about intra-economic processes and results

activities and providing this information to the management of the enterprise by comparing internal

financial statements;

Answer: 2. - formation of reliable and complete information about intra-economic processes and results

activities and providing this information to the management of the enterprise by comparing

internal financial reporting;

Planning and monitoring the economic efficiency of the enterprise and its centers

responsibility;

Calculation of the actual cost of products and determination of deviations from established standards,

standards, estimates;

Analysis of deviations from planned results and identification of causes of deviations;

Ensuring control over the availability and movement of property, material, money and labor

resources;

Formation of an information base for decision making;

3. - formation of an information base for decision-making;

Identification of reserves for increasing the efficiency of the enterprise.

Question 21. Solution parameters are:

1. a set of decision options that can be made in a given situation

Answer: 2. external and internal conditions that must be taken into account when making decisions

and which “narrow” the field of alternatives

See Structure of responsibility center reports by management level

Question 22. To solve management accounting problems, the following functions are used:

Activities,

ensuring cost transparency;

Creation of a methodological and instrumental base for managing the profitability and liquidity of an enterprise,

consultations with managers on choosing effective options for action;

Answer: 2. - coordination of goals and plans of departments and the enterprise as a whole, assistance to management;

Organization of work on the creation and maintenance of a management accounting system;

Uninterrupted implementation of planning processes and monitoring of economic results

activities, ensuring cost transparency;

Creation of a methodological and instrumental base for managing profitability and liquidity

enterprises, consultations with managers on choosing effective options for action;

3. - coordination of goals and plans of departments and the enterprise as a whole, assistance to management;

Organization of work on the creation and maintenance of a management accounting system;

Question 23. When solving the problem of “refusing to release or continuing to release a type of product”

apply the following method:

1. calculation of the full actual production cost

Answer: 2. “direct costing” system

3. analysis of the feasibility of accepting an additional order

See: Planning volumes of activity with optimization of the range of products, including

presence of a limiting factor

Question 24. In the conditions of individual production, the individual output of workers is determined by:

1. Cost per hour / number of hours worked

2. How cost / number of hours worked

Answer: 3. By calculation method (cost / quantity of products produced)

(cost / quantity of products produced)

Question 25. Management accounting adheres to the following principles:

Answer: 1. - sufficient economic and legal independence of economic systems;

2. - free pricing that can balance supply and demand

Healthy financial and monetary system;

Refusal of the state from administrative intervention in economic activity;

3. - sufficient economic and legal independence of economic systems;

Free competition, elimination of monopoly;

Refusal of the state from administrative intervention in economic activity;

Not only a system for collecting and analyzing information about enterprise costs, but also a budget management system

(planning) and system for assessing the performance of departments, i.e. management non-accounting technologies:

Sufficient economic and legal independence of economic systems;

Free competition, elimination of monopoly;

Free pricing that can balance supply and demand

healthy financial - monetary system;

Refusal of the state from administrative intervention in economic activity;

Question 26. The deviation in prices for direct labor costs is calculated using the formula:

1. (actual cost estimate - planned cost estimate) * actual operating time.

Answer: 2. (actual cost of direct labor costs - planned cost of direct labor costs) *

actual working time.

3. (actual cost of direct labor costs - planned cost of direct labor costs) / actual

working hours.

Question 27. What was the reason for the separation of management accounting from the unified accounting system

accounting:

1. requirements of tax authorities

2. legal requirements for accounting

Answer: 3. specificity of the goals and objectives of management accounting

Question 28. What is the role of the accountant-analyst in making management decisions?

Answer: 1. in making management decisions.

2. in optimizing management decisions made.

3. in preparing management decisions.

Question 29. When calculating the reduced cost using the direct-cost method for general production

Expenses of a conditionally fixed nature:

1. for costs

Answer: 2. relate to the financial result

Question 30: The ethical standards of a management accountant include:

Question 31. The batch accounting method assumes:

1. periodic inventory of remaining materials in workshops

Answer: 2. periodic preparation of a report on the actual production of finished products and released

material

3. comparison of data on the actual use of materials with data on their use according to technological

documentation

Question 32. Internal management reporting is used for the purposes of:

Answer: 1. Breading, management, control.

2. Breading and management.

3. Planning and control.

Question 33. The creation of the “standard - cost” system is aimed at:

Answer: 1. - cost management;

Evaluation of personnel performance;

Estimation of budgets;

Price policy.

2. - cost management;

Setting prices and pricing policy;

Evaluation of personnel performance.

3. - assessment of personnel performance;

Estimation of budgets;

Price policy.

Question 34. The production plan determines:

Answer: 1. types and quantities of products that should be released in the upcoming budget

(planned) period

2. types of products that should be released in the upcoming budget (planning) period

3. the amount of products that should be produced in the upcoming budget (planning) period

Question 35. Is accounting policy regarding management accounting a trade secret?

1. No, it is not

Answer: 2. Yes, it is

3. Yes, it is, only in terms of income

Question 36. In terms of accounting for reimbursement of fixed production costs, direct loss may be

defined:

Answer: 1. As an increase in fixed costs over marginal income or in the amount of reimbursement

fixed costs

2. How fixed costs increase over total income

Question 37. The “standard - cost” system reveals:

1. deviation of estimated costs from their planned (standard) values

Answer: 2. deviation of actual costs from their planned (standard) values.

3. deviation of actual profit from planned.

Question 38. Data on expenses and income are considered relevant:

Answer: 1. related to the management decision being made

2. related to the current period of time

3. related to a specific type of activity

Question 39. Is it true that standard costs allow the manager to work in the mode

"principle of exceptions":

1. The negative is excluded - yes, i.e. a norm is excluded if there is economy in the sense of a norm.

Answer: 2. The negative is excluded - yes, i.e. the previous norm is excluded if there are savings in

sense of the norm.

Question 40. The main requirement for the provision of information in management accounting:

1. Information content of the provision.

2. Accuracy of delivery.

Answer: 3. Speed ​​of delivery.

Question 41. A product produced by an organization generates revenue of 200 rubles per unit. and marginal

profit 80 rub./unit. Fixed indirect costs for the period amount to 40,000 rubles. Point size

breakeven for this period will be (in units of product):

Answer: 2.500

3. 333.333333333333

4. 142.857142857143

Analysis of the relationship "costs - production volume - profit,

Income Statement Layout

Question 42. To determine standard costs it is necessary to justify:

Answer: 1. norms of consumption of various production resources per unit of production.

2. norms of consumption of various production resources.

3. consumption standards per unit of production.

Question 43. Consumers of management accounting information are:

1. shareholders of the enterprise

Answer: 2. enterprise managers

3. tax office

4. The bank is at the stage of making a decision to issue a loan to the company.

See Differences between financial and management accounting

Question 44. Management accounting is a subsystem

1. Analytical accounting.

Answer: 2. Accounting.

3. Economic analysis.

Question 45. The organization of a system of standard costs involves:

1. the presence of a normative economy.

2. availability of regulations for maintaining records and analyzing deviations.

Answer: 3. - the presence of a normative economy;

Availability of regulations for maintaining records and analyzing deviations.

Question 46. Standard cost calculations are used for the following purposes:

1. providing control function.

2. ensuring planning management.

Answer: 3. providing 2 management functions: planning and control.

Question 47. Among the principles of the normative approach to cost calculation are:

1. Development of standard product costs.

Answer: 2. Development of standard calculations.

Question 48. How many units of produced and sold products will ensure a profit in

in the amount of 200 monetary units, if the selling price of one product is 16 monetary units, variable

costs per unit of product - 6 monetary units, fixed costs for the period - 100 monetary units.

1. 45 units.

2. 20 units

Answer: 3. 30 units

(16*x - 100 -6*x = 200, 10x = 300, x = 30)

Question 49. The concept of “deviation” means:

Answer: 1. Deviation from norms and standards.

2. Deviation in calculations.

3. Deviation from the norm.

Question 50. The “standard-cost” system, in contrast to the domestic standard cost system:

Answer: 1. The standard - cost - for the financial result of the period differs in the procedure for writing off identified deviations

occurrence, it does not take into account how many materials are transferred to production and how much is left for

warehouse, the entire total quantity in prices is written off to the financial result.

2. The standard - cost - for the financial result of the period differs in the procedure for writing off identified deviations

occurrence.

3. The standard - cost - for the financial result differs in the procedure for writing off identified deviations; it is not taken into account,

how many materials were transferred to production and how much remained in the warehouse.

Question 51. The deviation in the price of materials used indicates:

Answer: 1. About the difference between the values ​​of prices (actual from standard-planned) 2. About the difference between prices (actual from market)

3. About the difference between the values ​​of prices (actual procurement from normative-market)

Question 52. The price deviation for direct material costs is calculated using the formula:

1. (actual price of materials) / actual quantity of materials.

2. (actual price of materials) *actual quantity of materials.

Answer: 3. (actual price of materials - planned price) *actual quantity of materials.

Question 53. The rules for constructing internal segmental reporting are established:

Answer: 1. management of the organization

2. PBU 12/2000

3. international standards

Question 54. The “Revenue Center” is responsible for:

1. costs

Answer: 2. revenue

3. costs and revenue

Question 55. Is it permissible under regulatory accounting conditions to write off deviations in full without

distribution by calculation objects?

1. Yes, only if there are deviations for one costing object

Answer: 3. No

Question 56. An accountant performing management accounting should attach special importance to

compliance with such ethical principles as:

Answer: 1. - trade secrets and corporate responsibility;

Confidentiality of information.

2. confidentiality of information.

3. trade secrets and corporate liability.

Question 57. When making a management decision related to the choice of one of the alternatives

options, information is needed about:

Answer: 1. Sales forecast (return on capital advanced).

2. Sales.

3. Return on capital advanced.

Question 58. The quantity deviation for direct material costs is calculated using the formula:

1. (actual quantity) / planned price.

2. (actual quantity - planned quantity) / planned price.

Answer: 3. (actual quantity - planned quantity) * planned price.

Question 59. The deviation in the amount of direct labor expended is calculated using the formula:

1. (actual amount of direct labor expended - standard amount of salary) / actual rate

for direct labor.

Answer: 2. (actual amount of direct labor expended - standard amount of salary) * actual

rate for direct labor.

3. (standard amount of direct labor expended - standard amount of salary) * actual rate

for direct labor.

Question 60. The deviation in the efficiency of using overhead costs is calculated by

formula:

1. OPR = OPRconstant. * PRODUCTION VOLUME +OPRvariable/PRODUCTION VOLUME.

2. OPR = OPRconstant. /VOLUME OF PRODUCTION minus ODPvariations./VOLUME OF PRODUCTION.

Answer: 3. OPR = OPRconstant. /VOLUME OF PRODUCTION +OPRvariables/VOLUME OF PRODUCTION.

Question 61. Ideal standards use:

1. Used in accounting

2. Used in management accounting

Answer: 3. There are no ideal standards

Question 62. To control and manage price deviations, the following methods are used:

1. Sales budget.

2. Rolling budget.

Answer: 3. Flexible budget.

Question 63. To control and manage quantity deviations, the following methods are used:

1. Inventory budget.

2. Production budget. Answer: 3. Flexible budget.

Question 64. Deviation in operating time indicates:

Answer: 1. About the difference from the normative value, about the need for revision

2. About the difference from the normative value

3. On the need to revise the normative value

Question 65. Does the “standard-cost” system keep current records of changes in standards?

Answer: 1. Yes.

Yes (comparing fact with plan).

Question 66. The general (main) budget is:

Answer: 1. a set of plans drawn up for the enterprise as a whole

2. a set of plans drawn up for the main production divisions of the enterprise

See Cash Flow Budget

Question 67. The standard cost of manufactured products, works, services is reflected in

Answer: 1. D - t 43 K - t 40

2. D - t 40 K - t 43

3. D - t 40 K - t 20

Question 68. The actual cost of products, works, and services released from production is reflected in

accounting records with the following entries:

1. D - t 43 K - t 40

2. D - t 20 K - t 40

Answer: 3. D - t 40 K - t 20

Question 69. In what form is the deviation of actual labor costs from the standard reflected?

costs under the standard method of accounting for production costs?

1. Developed for each production operation 2. Developed for homogeneous production operations in comparison

Answer: 3. It is developed for each production operation in comparison with its standard value

Question 70. Differentiation of indirect cost distribution bases assumes that:

1. various distribution bases should be used to draw up normative (planned) and

actual calculations;

2. different distribution bases should be used for each reporting period;

Answer: 3. Different allocation bases can be used for different cost items and different locations.

occurrence of costs;

Question 71. The planning period is:

1. time period during which plans are implemented

2. the time period during which enterprise managers draw up and agree on a plan

Answer: 3. the time period for which plans are drawn up and during which plans are implemented

Topic 5 (35). Basics of planning. Budgeting

Question 72. Mandatory principles of management accounting include:

1. double entry

Answer: 2. usefulness of information for making management decisions

3. monetary dimension

Question 73. What are the mandatory conditions for the development of management accounting:

1. Production necessity.

Answer: 2. Economic demand.

3. Development of scientific and material base.

Question 74. The functional responsibilities of an accountant-analyst are:

1. - coordination of goals and plans of departments and the enterprise as a whole;

Assistance to management;

Uninterrupted implementation of planning processes and monitoring of economic results.

Answer: 2. - coordination of goals and plans of departments and the enterprise as a whole;

Assistance to management;

Organization of work on the creation and maintenance of an accounting management system;

Uninterrupted implementation of planning processes and monitoring of economic results

activities;

Ensuring cost transparency;

3. - ensuring cost transparency;

Creation of a methodological and constructive basis for managing the profitability and liquidity of an enterprise;

Consulting managers on choosing the effectiveness of action options.

Question 75. Is it mandatory to organize management accounting at an enterprise?

Answer: 2. No.

Question 76. The transfer price in general is determined by:

1. As the price of transferring products and services from one segment to another segment of the same enterprise

Answer: 2. As the internal cost of transferring products and services from one segment to another segment of the same

enterprises.

3. How is the price of transferring products and services from one segment to another segment of the enterprise

Question 77. The option is more consistent with traditional domestic accounting practice

organization of management accounting:

1. multiple options

Answer: 2. boiler.

Question 78. A responsibility center, the head of which must control income and expenses

of its division is:

Answer: 1. Structural unit (or type of activity)

2. Parent organization

Question 79. The main purpose of management accounting is to provide the data necessary for:

1. drawing up an explanatory note to the balance sheet and financial statements

2. preparation of reporting on activities within the framework of a simple partnership agreement

Answer: 3. formation of management decisions and organization of control over their implementation

Question 80. In terms of calculating the full actual production cost, direct

costs are related to:

1. With planned costs

Answer: 2. With standard cost values

3. with standard values

4. With actual cost values

Question 81. When the volume of output increases in the reporting period, fixed costs:

1. decrease

2. increase

Answer: 3. remain unchanged

See: Classification according to the degree of dependence of the amount of costs on the level of business activity (volumes

production or sales)

Question 82. The report of the investment center manager must include information:

1. Profit from used assets

2. About income and profit of used assets

Answer: 3. About costs, income, profit of used assets

Question 83. Compliance with the requirements of accounting regulations approved by orders

Ministry of Finance of the Russian Federation, is mandatory when maintaining (what kind of accounting?):

Answer: 1. Financial accounting.

2. Management accounting.

3. Accounting.

Question 84. Determine the deviation in the price of basic materials provided: - standard price - 10

grandfather.; - actual price - 8.2 units; - actual quantity - 1000 units; - purchase price - 8 units.

Answer: 1. favorable - 1800

2. unfavorable - 200

3. favorable - 2000

1000 units* 10 units - 1000 units* 8.2 units = 1800 units

Question 85. Period expenses include:

1. Costs attributed to the previous period.

2. Costs attributable to a given period.

Answer: 3. Current costs attributable to this period.

Question 86. With a planned sales volume of the product in the amount of 12,000 units. revenue should

amount to 840,000 rubles. Using the “flexible budget” method, determine revenue for the sales volume of a product in the amount of 10,000 units:

Answer: 3. 700000

Level "2"

Question 87. The value of cost estimate items is calculated:

1. Based on actual resource consumption.

2. By resource consumption.

Answer: 3. According to resource consumption standards (according to standards).

Question 88. The following are taken into account as part of excess wasteful costs:

1. Costs included in unsold products for more than 1 year

2. Costs included in expired products

Answer: 3. Costs of idle capacity in production

Question 89. The object of attribution of costs during custom costing is:

1. certain product groups

2. both individual types and groups of products

Answer: 3. separate production order

Calculation methods

Question 90. Nomenclature of cost items:

1. regulated by the Accounting Regulations "Expenses of the Organization"

Answer: 2. established by the organization independently

Cost item - a set of costs reflecting their homogeneous intended use

Question 91. Single-element costs are:

1. independent of changes in production volumes

Answer: 2. caused by the use of one type of resource

3. not higher than the minimum wage established by law

Question 92. Information about costs in the reserve of economic elements shows:

Answer: 1. the share of one or another element in the total cost

2. production cost

3. ratio of costs and production volume

Classification of costs by economic elements

Question 93: Elimination and distribution methods are:

Answer: 1. variants of the transversal method;

2. options for the custom method;

Question 94: The cost center manager's report includes:

1. actual and standard values ​​of cost items controlled by the manager

Answer: 2. actual and standard values ​​of consumption of material resources and their balances at the beginning and

end of the reporting period

3. data on production and working hours worked

Question 95. What type of costs should include the costs of telephone services if they include

fixed subscription fee and time-based tariff:

1. variable;

2. permanent;

Answer: 3. mixed;

Question 96. The management accounting system processes data on business facts:

Answer: 1. about expenses, income and results of operations in the analytical manner necessary for management purposes

cuts

2. about the income and expenses of the organization, about accounts receivable and payable, about financial

investments, the state of funding sources, relations with the state regarding the payment of taxes, etc.

See: Topic 1 (31). Introduction to Management Accounting

Question 97. The standard cost accounting method corresponds to the principles of the Western management system

accounting:

1. direct - costing

Answer: 2. standard - cost

3. margin

See: Formulas for calculating deviations by factors

Question 98. The main objects of management accounting are:

1. Income, expenses, costs, results (profits, losses)

Answer: 2. Income, expenses, costs, results (profits, losses), center of responsibility and system

internal reporting

3. Costs, results (profits, losses), center of responsibility

Question 99. Of the following, financial plans/budgets include:

1. general business expenses plan;

2. sales plan;

3. production cost budget;

Answer: 4. forecast balance;

Financial plans include:

• budget of income and expenses;
• investment budget;
• cash flow budget;
• forecast balance.

Question 100. Limited cost calculation is more necessary for:

Answer: 1. making operational management decisions

2. making long-term management decisions

Costs should be taken into account at full cost in the context of the adoption of long-term management

decisions, and cost accounting at a limited cost is most effective when making operational

management decisions on regulation and control of costs, production and sales,

establishing lower price limits taking into account supply and demand on the market, regulating inflation

processes.

Question 101. Determine the safety margin of the organization in natural units, if the actual output

is 20 units, the selling price of one product is 16 monetary units, variable costs for

one product - 6 monetary units, fixed costs of the period - 100 monetary units.

1. 5 units

Answer: 2. 10 units

3. 0 units

Question 102. Indirect costs are:

Answer: 1. which cannot be attributed at the time of occurrence directly to the cost object

2. for the classification of which additional calculations are required for distribution in proportion to one or the other

another selected database

3. which at the time of their occurrence can be directly attributed to the cost object

Question 103. Deviation of variable costs between the flexible budget value and the actual one

value (deviation in costs per unit of product) is determined by the formula:

Answer: 1. Actual quantity of products sold x (Actual value of variable costs for

unit of production - Planned value of variable costs per unit of production);

2. Planned quantity of products sold x (Actual value of variable costs per unit

products - Planned value of variable costs per unit of production);

Question 104. Level of responsibility of the investment center:

1. below the level of responsibility of the profit center;

Answer: 2. above the level of responsibility of the profit center;

Question 105. With an increase in the volume of output in the reporting period, how do the constants change?

expenses:

Answer: 1. Do not change

2. Change proportionally

3. Increase

Question 106. Resource consumption rates in production are calculated:

Answer: 1. from what has been achieved, and how to develop technically sound standards

2. based on technically sound standards

3. from actually achieved

Question 107. Ensuring control of costs and income in conditions of accounting by responsibility centers

achieved:

1. changing the reporting contents of responsibility centers

2. providing information about deviations by center

Answer: 3. redistribution of powers between managers heading responsibility centers

Question 108. Level of independence and responsibility of the investment center:

1. below the level of responsibility of the profit center

Answer: 2. above the level of responsibility of the profit center

See Transition to enterprise financial structure

Question 109. The document flow schedule is:

Answer: 1. Document movement schedule in the organization

2. Schedule of movement of documents in the organization by department

3. Schedule of movement of documents in the organization in departments

Question 110. Basic standards are used for:

1. Calculation of indicators

2. Calculation of basic indicators

Answer: 3. Development of more advanced forms

Question 111. What business facts are processed in the management accounting system?

Answer: 1. About the facts related to the production of products (costing of resources)

2. About the facts related to the calculation of resources

3. About the facts related to the calculation of labor productivity

Question 112. “Costs for preparation and development of production” are:

1. cost element;

Answer: 2. cost item;

Question 113. Budget of income and expenses:

Answer: 1. reflects the structure and amount of income and expenses of the enterprise as a whole and individual centers

responsibility (or areas of activity) of the enterprise and the planned financial

result in the upcoming budget period

2. reflects the structure and amount of income and expenses of individual responsibility centers (or areas

activities) of the enterprise

3. reflects the financial result planned to be received in the upcoming budget period

Business Cost Plan

Question 114. For management purposes, accounting organizes the accounting of expenses by cost items.

The list of cost items is established:

1. by law

Answer: 2. organization independently

See: Cost item - a set of costs reflecting their homogeneous intended use.

Question 115. Publication of internal management reporting in the media

carried out:

1. when changing the head of the enterprise

2. annually

3. quarterly

4. in case of bankruptcy of the enterprise

Answer: 5. not carried out under any circumstances

See Differences between financial and management accounting

Question 116. “Work in progress” is:

1. construction unfinished by the end of the reporting period

Answer: 2. products that have not gone through all stages of processing by the end of the reporting period and therefore are not

recognized as finished products

3. production of fixed assets or intangible assets on our own, not completed by the end of the reporting period

Work in progress - products that have not completed all stages of processing and processing by the end of the reporting period.

therefore not recognized as finished products.

Question 117. The main tool of management accounting that allows you to control activities

The cost center is:

1. statistical management plan

Answer: 2. cost estimate

3. internal reporting

Question 118. In conditions of mass production, individual output is determined according to the data:

1. Costing

Answer: 2. Standard costing

3. Individual costing

Question 119. Information support for management of deviations during regulatory accounting

achieved:

Answer: 1. Presentation of information about deviations between actual and standard values ​​for

types of products (manager's report)

2. Presentation of information on deviations by type of product (manager’s report)

3. Presentation of information on types of products (manager’s report)

Question 120. Using the "standard - cost" system, evaluate the inventories of finished goods and work in progress for

reporting date provided: - actual costs for the production of 1000 handles amounted to 4 units; -

regulatory 4, 2 units

1. 2000 units

2. 4000 units

Answer: 3. 4200 units.

Accounting is carried out according to standard costs, and any differences that arise are written off to variance accounts.

See: General provisions

Question 121. In large enterprises, the ratio of income and costs is measured:

1. cost center, where standards for cost elements are established

Answer: 2. profit centers

3. income centers that are responsible for the volume of production

Question 122. The list of possible reports for the “cost center” includes, but is not limited to, the following:

1. budget of income and expenses

2. cash flow budget

3. General expenses plan

Answer: 4. production plan

See Cash Flow Budget

Question 123. Procedure and rules for compiling and submitting on-farm reporting

adjustable:

Answer: 1. organizations

2. national and international standards

Question 124. The balance sheet inventory equation has the following form:

1. Inventory at the beginning of the period + Inventory receipts during the period = Inventory disposal during the period -

Ending inventory

2. Inventories at the beginning of the period + Inventories at the end of the period = = Disposal of inventories during the period +

Inventory receipts during the period

Answer: 3. Inventory at the beginning of the period + Inventory receipts during the period = Inventory disposal during

period + Inventories at the end of the period

See production plan

Question 125. A responsibility center whose manager must be able to control

profit and the size of its assets is:

1. profit center

2. income center

Answer: 3. investment center

Question 126. The object of calculation is:

1. cost

Answer: 2. cost carrier

3. labor costs

See: Classification of costs into direct and indirect

Question 127. Financial plans include:

1. General expenses plan

Answer: 2. forecast balance

3. production cost budget

4. sales plan

See Cash Flow Budget

Question 128. Determine the total deviation of direct labor costs from the conditions: - Actual labor rate

- 200 rub. in an hour; - Standard OT rate - 198 rubles. in an hour; - Actual operating time - 40 hours; -

Standard time - 42 hours; - The actual time to correct the defect is 3 hours.

Answer: 3. 284 rub.

Total Direct Labor Variance = (Actual Hours + Actual Rework Time) *

actual wage rate - standard hours * standard wage rate = (40 hours + 3 hours) *

200 rub. per hour - 42 hours * 198 rub. per hour = 284 rub.

Question 129. Variable cost deviation between the flexible budget value and the planned value

(deviation in the volume of product output) is determined by the formula:

1. (Planned quantity of products sold - Actual quantity of products sold) x

The actual value of variable costs per unit;

Answer: 2. (Planned quantity of products sold - Actual quantity of products sold

products) x Planned value of variable costs per unit;

Question 130. Choosing a base for the distribution of indirect costs:

1. agreed with the tax office

2. established by law

Answer: 3. determined by the organization independently

4. determined by the organization independently

The choice of one or another distribution base is determined by the functional specifics of the enterprise (when using a plant-wide distribution base) or its individual services (when taking into account indirect costs at the department level). In this case, the main criterion for choosing a distribution base is the combination of different types of resources in a particular technological line. The main resources used in the production of products are:

• material circulating assets (raw materials, materials, components);
• fixed assets (in terms of depreciation);
• labor resources (in terms of wages).

Question 131. Standard costs are:

1. planned estimated costs associated with production

2. actual production costs per unit of production

Answer: 3. carefully calculated predetermined costs per unit of finished product.

Regulatory accounting as a tool for accounting, planning and cost control. The concept of standard costs and the system

"standard - cost". Principles, organization and procedure for calculating standard costs. Benefits of use

"standard - cost" systems.

Question 132. With a growing level of inventories of work in progress and unsold products

The financial result when using the direct costing method will be:

1. the same as when using the full cost accounting method

2. higher compared to the full cost accounting system

Answer: 3. lower than calculated on the basis of full costs

Production program planning, stage 2

Question 133. The ending balance can be negative:

1. in the cash flow budget

Answer: 2. in the budget of income and expenses

See Investment Budget

Question 134. Planning for a period of up to 1 year can be characterized as:

Answer: 1. current

2. tactical

3. strategic

See Topic 5 (35). Basics of planning. Budgeting

Question 135. The concept of “break-even point” (“zero profit point”) means:

Answer: 1. the minimum volume of production that is necessary to cover all costs, as variables,

and permanent

2. the minimum volume of production that is necessary to cover variable costs

3. the minimum volume of production that is necessary to cover fixed costs

Cost behavior. Dividing costs into variable and fixed. The concept of production capacity. Analysis

dependencies "cost - volume - profit". Critical break-even point and profit planning.

Question 136. Application of the standard method for accounting materials compared to the accounting method

actual costs are preferable because:

Answer: 1. the presence of standards makes it easier to plan the need for production resources (equipment,

materials, personnel) and financial resources for the acquisition of these resources

2. there is no need for conditional distribution of fixed costs

3. it is possible to carry out analysis in conditions of limited resources, which is important for planning

production in the presence of limiting factors

Standard cost accounting. General provisions

Question 137. In the conditions of multi-stage accounting of production costs, conditionally fixed costs:

Answer: 1. refer to specific types of products, structural divisions, responsibility centers and

the entire enterprise

2. refer to types, brands, articles, item numbers of finished products

3. assigned to responsibility centers

See: Indicators of costs and production costs, methods for their calculation.

Question 138. The planning procedure begins with drawing up:

1. commercial cost plan

Answer: 2. sales budget

3. production plan

4. investment budget

See Budget Sequence

Question 139. Direct costs are:

1. the value of which depends on the level of business activity

Answer: 2. which at the time of their occurrence can be directly attributed to the cost object

3. the value of which does not depend on the level of business activity

If the Test, in your opinion, is of poor quality, or you have already seen this work, please let us know.

Budget management is an operational system for managing an enterprise by centers of financial responsibility using budgets. allowing you to achieve your goals through the most efficient use of resources. Consequently, the construction of a budgeting system is based on the concept of decentralized management and the allocation of central financial districts within the organizational structure of the enterprise."

In passing, we note that the organizational and financial structure are functionally different. Financial structure shows how profit is generated. It reflects the structure of cost, cash flows, and the logic of the formation of the financial result. Organizational structure, in turn, determines the order of subordination of the divisions of the company (enterprise).

Management of financial responsibility centers is one of the subsystems providing intra-company management. As an independent system, it allows you to evaluate the contribution of each half-division to the final results of the enterprise, decentralize cost management, monitor their formation at all levels of management and, on this basis, increase the economic efficiency of management.

When drawing up budgets, you first need to focus on the business model. First, you need to understand how the value chain is structured and what business processes the enterprise’s activities consist of. Based on this, it is possible to form a financial structure that reflects the structure of activities and centers of responsibility for results.

Thus, financial structure of the enterprise is a hierarchical system of financial responsibility centers.

At all financial responsibility center - This is a structural unit or group of units that carries out operations whose ultimate goal is to optimize profits, can have a direct impact on profitability, and is also responsible to senior management for the implementation and compliance with cost levels within established limits.

As a rule, the following centers of financial responsibility are distinguished: costs, income, profit, investment, control and management.

Cost center - This is a structural unit or group of units of an enterprise whose managers control only costs (for example, a production site, a production workshop).

The formation of cost centers should be carried out taking into account the organizational and technological features of the enterprise. The level of cost detail varies depending on the size of the organization and the goals set by management. The head of the Central Federal District has certain powers and financial responsibility for the costs incurred.

Income Center - This is a structural unit or group of units of an enterprise whose managers are responsible only for revenue from sales of products, goods, services and for the costs associated with their sales (for example, marketing and sales units).

By identifying income centers, management considers the latter to be the main indicator for assessing the performance of managers. When choosing income as the main evaluation criterion, it should be taken into account that the income of each central federal district must be formed objectively, regardless of the amount of income for the organization as a whole, and that the increase in income of one center should not lead to a decrease in the income of another center.

Profit center - This is a structural unit or group of units of an enterprise, whose managers are responsible not only for costs, but also for the financial results of their activities.

An example of such a central financial institution could be subsidiary company of the holding, located on a separate balance sheet. The managers of such profit centers have expanded powers and bear greater responsibility than managers of cost centers. Managers control income and expenses for the organization as a whole and are interested in increasing profits, since it is by this indicator that the effectiveness of their work is assessed.

Investment Center - This is a structural division or group of divisions of an enterprise, whose managers are responsible not only for revenue and costs, but also for capital investments and the efficiency of their use.

Examples of investment centers are large subsidiaries of industrial holdings. The main focus of investment is to maximize the market value of the company.

Let us give a practical example of the formation of a financial structure using the example of a furniture company.

The author of the article does not set out to add theoretical knowledge to the reader on the issue. The concept of a company’s financial structure and the related concept of a financial responsibility center (FRC) was created by strictly practical people, for purely practical purposes. So we’ll figure out what a financial structure and a central financial institution are exclusively from a practical point of view.

If you want to achieve a goal, you will have a plan, that is, you need a budget. If you really want to achieve a goal, your plan will include options for overcoming possible obstacles on the way to the goal, that is, you need scenario budgeting.

If you really If you want to achieve your goal, you must clearly define who is responsible for what on your team. Discord in the team's work will ruin even the best plan. Therefore, budgeting in a company begins with the financial structure, which determines who is responsible for what.

What is the financial responsibility center responsible for?

Our entrepreneur is mostly convinced that management accounting and budgeting fall within the competence of the financial department, and, therefore, the financial structure, the center of responsibility are purely financial terms. This explains the fact that financial structures created by companies on their own often exist separately from reality and are replete with “virtual” responsibility centers that perform exclusively accounting functions. They are created not for management, but for accounting. It’s quite natural, because the financial department deals with accounting, and management is the prerogative of the general director.

In order for the financial structure to be an instrument of budget management, each central financial district must be not only real, but also animate. Namely, it should be a specific employee of the company, usually the head of a department, who manages the actual business process/processes. The output of this business process is assessed by the corresponding financial indicator. It is very important that responsibility here should be understood as the opportunity and obligation to manage business processes that form the financial indicator for which the Central Federal District is responsible.

Then the generally accepted classification of responsibility centers becomes transparent and understandable, and the desire to create new types of responsibility centers will disappear by itself. In itself, this desire is quite innocent, but it is precisely this practice that primarily leads to the fact that the heads of departments in the company are responsible for indicators that they cannot manage, and at the same time, important performance indicators are generally left unattended. This distribution of responsibility leads to a psychologically obvious result: if there is no real opportunity to manage the process, but responsibility for the indicator is assigned, the manager will try to manage the indicator itself, but... on paper.

Revenue Center

Revenue centers are divisions responsible for selling products and services on the market. Such divisions manage the sales process and, accordingly, can influence income. Their main goal is to maximize sales. The main indicators that can be influenced by the sales business process managed by the revenue center are the sales range, quantity and price of products sold.

Who controls the contribution margin?

Such divisions often set a profit margin target to ensure that they do not discount too much in pursuit of sales volume. But this does not mean that they are responsible for marginal income! The sales division manages only one side of the contribution margin - the actual income, and in order to optimize the company's contribution margin, this is not enough. In order to control marginal income, it is necessary to be able to influence both the sales process and purchasing/production, that is, the cost of production. It is necessary to see the whole picture and formulate a general policy that coordinates these business processes, and this is already the responsibility of the profit center. The head of the revenue center does not manage the purchasing or production process, and therefore cannot influence the cost of production. Just because you coined the term “marginal income center”, your sales department did not turn into one. It remained a center of income, as is typical of its nature. However, a situation often occurs when, having assigned marginal income to the sales department as a target indicator, the company’s manager calms down on this, and the issue of compliance of the actions of the purchasing and production departments with the goal of maximizing marginal income remains behind the scenes.

Something more than margin

Marginal income is not always the main criterion that is taken into account when formulating a sales policy. Much more important may be considerations of the overall development of the company and risk reduction. For example, a low-margin product may be included in a product line to keep competitors out of a market niche. A company may find it necessary for its market position to present its entire product line, regardless of the marginal revenue generated by each individual item (which does not exclude careful monitoring of sales and management through quantity/price). The company's product range may include products with relatively low margins to hedge against risks associated with unstable demand for expensive products when economic conditions change. And so on. This means that in order for the activities of the income center not to run counter to the strategic interests of the company, the company’s management must set additional targets (restrictions) in the field of assortment policy, policy regarding buyers, customers, sales channels, etc.

Cost centers

Cost centers are divided into two different types: standard and non-standard cost centers. This division is due to a fundamental difference in the business processes managed by such centers, which requires the use of financial indicators of different types to monitor their activities.

Standard Cost Centers

Business processes managed by standard cost centers are characterized by a pronounced relationship between the volume of resources consumed and output - for example, production, purchasing departments. Such divisions do not manage revenues and profits; even the required output volume and standards for resource expenditure per unit are determined externally. The main criteria for the effectiveness of such departments are the fulfillment of the planned production target and the fulfillment of requirements for the quality of products or work. An important point is that the quality of products or work, as a rule, is directly related to compliance with resource consumption standards.

Our generally accepted definition of a standard cost center as a division, the head of which is responsible for achieving the planned level of costs, fundamentally incorrectly formulates the purpose of the activity of such a division. Its goal is not to “get to cost” and save money. Its goal is production in a given volume and specified parameters. And cost standards are restrictions within the scope of which this output must be produced.

Saving should be economical

Setting targets incorrectly for standard cost centers can be particularly dangerous for a company. For a production department, it is much more important to fulfill the production plan on time and of proper quality, even with a slight excess of costs, than, having saved, to release the product to waste. In the first case, you will then understand the reasons for the overspending (possibly objective) and make appropriate decisions; in the second case, losses can lead to the collapse of the enterprise.

As for logistics departments, for example, purchasing, the correct ranking of goals is also very important there. You can purchase cheaper, but will the production workers be satisfied with the quality of the materials received, will such savings lead to significantly greater losses due to downtime or even breakdown of equipment, a forced reduction in the selling price or an increase in returns, warranty repairs due to inadequate quality of the final product.

The earlier the stage of the business cycle at which unplanned savings are made, the more significant their negative consequences may be. Unfortunately, according to the sandwich law, such a progression of positive consequences of savings is rarely observed.

Of course, we also need to save and increase labor productivity, which is one of the lowest in our country. However, priorities should be carefully set when setting goals and motivating staff: savings should be welcomed once deadlines and quality requirements are met. It is even possible to bring the issue of cost savings for regulatory cost centers into the sphere of rationalization proposals, i.e. implement savings after assessing the actual benefits expected from them. Then give a bonus. For the rationalization proposal.

Non-standard cost centers

Non-standardized cost centers manage business processes that do not have a direct connection between the amount of input resources consumed by the business process and the output result. The apparent vagueness of the relationship between costs and the useful result of the activities of such departments creates the impression that these costs can, if necessary, be reduced painlessly for the company’s work. However, we should be very careful in such assessments, so as not to inadvertently cut off the branch on which we are sitting.

Divisions - centers of non-standardized costs are created to achieve certain goals that are important for the business. For example, the goal could be:

• the occurrence or non-occurrence of a certain event: winning a tender for the development department of a construction organization or the absence of fines from the tax authorities for the accounting department;
• providing conditions for the efficient operation of the main departments on the part of the service providers;
• non-standard piece products or a complex range of services, where it is important that the result meets the requirements established by a specific customer.

If you offer such a center standards for secondary parameters of its activities as the main performance indicator, then you will not convert it into a standard cost center, but you will demotivate the staff to perform the quality tasks facing them. The necessary resources have to be planned not according to standards, but based on how exactly it is planned to achieve the goals set for the unit. Often, it is the correct setting of goals in a specific situation that is the most powerful tool for reducing costs. Naturally, this requires a fairly deep knowledge of the company's general director in the relevant aspects of the company's work. But one cannot seriously believe that one can successfully run a business without such awareness.

It’s much easier to just cut the costs of an irregular cost center, but it can lead to failure to achieve goals. And then the effectiveness of the remaining costs is unclear. Saving costs without compromising operational efficiency is not easy. An attempt to directly stimulate cost savings leads... to their increase. More precisely, to attempts to inflate planned costs in order to later demonstrate their savings. In principle, any ill-considered intervention in the cost planning process of such departments leads to attempts to inflate planned costs “just in case.” It is necessary to justify costs with specific action plans and an analysis of resource needs, and rewards for achieving specific goals within the planned costs.

Profit center

The profit center manages a chain of interconnected business processes that generate profit. Since profit is the difference between income and expenses, it is important that the profit center can manage both the sales business process that generates income and the business processes that determine the department’s expenses: purchasing, including the selection of suppliers, production, etc. To understand the specifics of its activities, it is important to keep in mind that the profit center is primarily responsible for coordinating and optimizing the work of the entire chain of business processes subordinate to it. This means that in order to perform his functions, he must have a truly high degree of independence in determining the resources required for his activities and the costs for them and in pursuing a sales policy. Such a division should be able to independently operate in the market both during purchases and sales, be responsible for rationing production, etc. At the same time, it is important in each specific case to find a balance between the need to coordinate the activities of the profit center with the strategy of the company as a whole and the degree of independence required to manage profits. If the activities of a profit center are too regulated or it does not have the opportunity to independently enter a market external to the company (for example, it supplies its products only to divisions of the company), then its manager will try to achieve the required indicators in ways unacceptable to the company.

I would like to draw the reader's attention to two misconceptions that are often encountered in practice regarding profit centers.

First, it is a mistake to assume that a profit center is responsible for part of the company's net profit as a whole, that is, profit calculated taking into account the company's overhead costs. The profit center is responsible only for profit, which is the difference between the income received by the division and its direct costs. This profit does not include any distributed centralized costs of the company, since the profit center cannot control these costs either by direct influence or by choosing a more profitable supplier of the corresponding service than the management company. This distribution can be used for a variety of analytical purposes, but it would be risky to use it when assessing the performance of a unit, since it is possible that the unit is performing well while centralized functions are being performed ineffectively.

Secondly, a division that has only internal consumers cannot be a profit center. This immediately leads to a fundamental divergence between the goals of the division and the company as a whole. In such a situation, the division will not strive to reduce its costs, but to increase income at the expense of its own comrades, which leads to an increase in the company's total costs. This also applies to the use of transfer prices within the company, for example, for the purpose of forming profit centers based on production or auxiliary divisions. In the absence of a market adjustment mechanism, transfer prices may mask the inefficiency of such units. If a division mainly operates on the foreign market, then it is objectively a profit center and the use of transfer prices for domestic consumers is justified.

Investment Center

The investment center has the authority to independently manage not only income and expenses, but also the use of the capital at its disposal. That is, it is almost an independent business. Our owner is especially reluctant to delegate such powers. As a rule, such centers are used in the financial structures of large holdings, developed by serious specialists, and their use is not accompanied by obvious errors. Owners should note that monitoring the performance of investment centers in the long term is not as simple a task as it seems at first glance. In the literature, it is customary to indicate the ROI indicator, sometimes supplemented by EVA. In real life, such a business remains part of the holding, and this connection should be expressed in additionally established goals, conditions, and restrictions designed to keep the division’s strategy in line with the overall strategy of the company. An attempt to limit oneself to financial indicators alone can lead to serious problems within just a few years, since these indicators have significant shortcomings as tools for motivating department heads. In the short term, there are always simple ways to externally improve these indicators, which negatively affect the long-term prospects of the business.

Remove unnecessary things

The idea that is conveyed in the article: Initially, a unit is characterized by a certain type of center of responsibility, determined by its activities, and not by our imagination- has high practical value. Having described the business processes of a division, you can immediately, having determined the appropriate type of responsibility center, imagine what methods can be used to effectively manage this division without wasting time reinventing the wheel.

From which it follows that the formation of a financial structure should begin with a description of business processes. If business processes are highlighted professionally, then any existing inconsistencies between the organizational structure and the company’s business processes will immediately become apparent. In this case, differences between the financial structure formed on the basis of business process analysis and the existing organizational structure, as a rule, lead to changes in the organizational structure.

I have repeatedly encountered the opinion that organizational and financial structures should be different and built on fundamentally different foundations. In fact, since the type of responsibility center is determined by the business processes it manages, responsibility centers must be linked to the links in the organizational structure. A situation in which the actual management of a business process is not formalized organizationally is obviously not normal. And the opposite situation, in which there is a business process, there is an organizational link responsible for it, but no one is responsible for its financial performance, should also not arise in a sensible financial structure. At the same time, it is not at all necessary that each organizational link be the center of responsibility. For example, if the individual contribution of a number of divisions to the company’s expenses is small and the business processes are of the same type, then only the higher division can be the center of responsibility.

When analyzing business processes, it is often discovered that one department is responsible for diverse business processes that must be managed by different types of responsibility centers. For example, purchasing and marketing, or warranty repairs and sales of spare parts. Typically, the successful performance of such functions requires different types of leadership. Most often, the analysis of such situations leads to a more effective redistribution of responsibility in the organizational structure, sometimes to the abandonment of an unproductive or non-core business process.

Strive to create the most simple and transparent financial structure; such a structure is easier to manage.

For example, they like to make the center of income or profit a financial service that, as it were, provides internal loans to departments in need of funds. In this way, they try to simulate the market situation within the company in order to increase the efficiency of the departments. In reality, this leads to the fact that the financial service, instead of focusing on the financial stability of the company, seeks to maximize its income by increasing the interest on internal loans. But this income is virtual. For the heads of departments that generate the company's real income, receiving funds at a price higher than the market price may push them to make unfavorable decisions for the company, for example, abandoning activities that generate profit but do not cover the interest on an internal loan.

The role of the Central Federal District in the budget process

What should be included in the responsibility center budget?

There are two parties that form the budget of each responsibility center: the company’s management sets the desired targets in accordance with the type of responsibility center (as if the budget framework) and the responsibility center itself, which forms a detailed budget based on action plans that ensure the achievement of set goals (that is, filling these frames of content).

At the same time, the company’s divisions themselves, which have deep knowledge of their field of activity, should be maximally involved in the process of planning future activities.

I would like to once again focus the reader’s attention on the fact that budgeting is a tool of practical management, and a formal approach to budget formation is unacceptable on both sides.

For example, the effectiveness of responsibility centers is extremely negatively affected by the situation when the budgets for which he is responsible include distributed indirect costs of the company. Moreover, I had to deal with this practice in relation to responsibility centers of any type. In real life, this only leads to the fact that the manager is not so much concerned with his direct responsibilities as with internal squabbles. Most managers are motivated by this distribution to minimize the amount of indirect costs charged to their department, and they spend a huge amount of time figuring out how much we pay, why, how it is distributed, and why I pay more than my neighbor. This approach demotivates more responsible managers and reduces their trust in management. There is another danger. General directors sometimes have the illusion that department heads really control the amounts of costs allocated to their budgets. And as a result, no one in the company is responsible for monitoring the validity of such costs and the efficiency of performing centralized functions.

Also, avoid creating budgets by transferring the figures of the previous year multiplied by some increasing or decreasing factor. It is extremely important that this content is formed based on the planned activities of the unit, specific activities, volumes of work, output, resource needs and requirements for their quality, etc. This gives an understanding of:

• How achievable are the goals?
• How are you planning to achieve them?
• parameters of external conditions, required resources, within the framework of which this plan is feasible, which means this budget is relevant

Naturally, as a result, the need arises to answer the questions:

• How will we act if the situation goes beyond these limits?
• How, in this case, are the actions of the unit consistent with the actions of other divisions of the company?
• What resource reserves are needed to maintain the ability to maneuver when external conditions change?

That is, there is a reasonable need to form budgets for various scenarios, determine the parameters critical for their implementation and their control values.

If the budgeting process does not produce information that answers all of the above questions, its value for the actual management of the company is minimal. The coincidence of a fact with the budget is random; it is not clear how to analyze the reasons for deviations from the budget. And most importantly, there is no idea what deviations are critical, how to react to them, and how a possible reaction will affect the company’s activities as a whole. And this is the main purpose of budgeting - planning how we will achieve the goal in real life, and coordination of efforts of all departments of the company in this direction.

1 Return on Invested (ROI) = Net income of an investment center: total assets invested in a given investment center

2 Economic value added (EVA) = net profit of the investment center - (weighted average cost of capital × invested capital)