Directions for improvement of the managerial accounting

• Author: Oprea Calin
• Position: Professor, Ph.D., Faculty of Economic Sciences, 'Nicolae Titulescu' University, Bucharest
• Pages: 175-185

Maria Zenovia Grigore • Mariana Gurau

175

LESIJ NO. XVII, VOL. 2/2010

DIRECTIONS FOR IMPROVEMENT OF THE MANAGERIAL

ACCOUNTING

Oprea C;LIN∗

Abstract

This paper presents the actual accountancy methodology and costs calculation in a single

circuit which considers the collecting and distribution of them related to their destination – on

calculating articles - does not allow the distinguished reflection of the expenses depending on the

economic nature. We are presenting some consideration for general organization of the

accountancy and the production expenses especially in two circuits, one depending on the

economic nature in the general or financial accountancy, on their destination, in the managerial

accountancy. In the second part of the paper we present directions for improving the costs

calculation that respond better to the companies’ management.

Keywords: managerial accounting, cost calculation, direct costing, cost analysis, cost

calculation methods

Introduction

The current methodology for accounting and production costing in one circuit (C<lin, 2003),

which is considering the collection and their distribution as their destination - the calculating

articles, does not allow reflecting the distinct economic costs by nature. This makes it harder to

identify ways to reduce costs and particularly materials costs of production which in our economy

have a fairly significant percentage, setting the smooth efficiency indicators of economic activity

based on unit production costs, calculate the efficiency of the final results of the company, setting

the assets situation and timely preparation and presentation of current financial statements (balance

sheet, profit and loss, etc..) which are required to be published. Here are a few reasons for which

some authors have decided to organize general accountancy and managerial accountancy in

particular in two circuits, one depending on the economic nature or financial accountancy and

second, in the managerial accountancy.

Proposal for improvement of the Class 9 “Management accounts”

About the way how managerial accounting or management organization chart of accounts in

general is designed and the operation of accounts in Class 9 "Management accounts" of this plan

can be a series of proposals for improving the methodology of calculation of the cost on

calculating objects (C<lin, 2007).

Thus, to specify the operation of each account referred to in this class, bear in mind that the

ultimate aim of registration with their expenses is not just "venting" them in order to determine the

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∗ Professor, Ph.D., Faculty of Economic Sciences, “Nicolae Titulescu” University, Bucharest (e-mail:

calinoprea@univnt.ro).