Role of Management Accounting in the organization

Məmmədova L.

JOURNAL OF ECONOMIC AND SOCIAL DEVELOPMENT, vol.3, no.5, pp.367-372, 2020 (Conference Book)

Qısa məlumat

ROLE OF MANAGEMENT ACCOUNTING IN THE ORGANIZATION Namig Alizadeh Zahid Azerbaijan State University of Economics (UNEC) Baku, Istiqlaliyyat str.6, AZ1001, Azerbaijan namiq.alizade.2020@bk.ru Leyla Mammadova Vagif Azerbaijan State University of Economics (UNEC) Baku, Istiqlaliyyat str.6, AZ1001, Azerbaijan leyla-m-4@inbox.ru ABSTRACT Management accounting serves as the organization’s management tool, which allows not only improving the quality and efficiency of information received and management decisions, but also maximizing the results of operations, controlling risks, and making development forecasts for the short and long term. In the course of studying the interpretations of the concept of “managerial accounting”, three approaches were identified in the interpretation of this definition, which differ in the breadth of the structural elements included in it. Existing definitions of management accounting reflect its functions, list actions and disclose differences from financial accounting. In the article, the authors disclosed the concept of "management accounting" of the enterprise, which is a system for collecting certain information and its use within the enterprise. The essence and role of management accounting can be defined as an integrated system of cost and income accounting, rationing, planning, control and analysis, which systematizes information for operational management decisions and coordination of problems of the future development of the enterprise. Also, the essence of management accounting is determined by its principles, functions and tasks. The main principles of management accounting are responsibility, manageability, reliability, interdependence and relevance. The article describes the essence of management accounting in enterprises, and also considers the goals and objectives of management accounting. The authors studied the relationship between managerial and financial accounting. Particular attention is paid to the importance of management accounting in the development of tactics and strategies of the organization in modern conditions. Keywords: management accounting, financial accounting, accounting functions, accounting system