Directions for improvement of the managerial accounting

AuthorOprea Calin
PositionProfessor, Ph.D., Faculty of Economic Sciences, 'Nicolae Titulescu' University, Bucharest
Maria Zenovia Grigore • Mariana Gurau
Oprea C;LIN
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
The current methodology for accounting and production costing in one circuit (Clin, 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 (Clin, 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
Professor, Ph.D., Faculty of Economic Sciences, “Nicolae Titulescu” University, Bucharest (e-mail:

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