Methodical Aspects of the Decomposition Approach to the Formation of the Managerial Cost Accounting System in the Organizations of the Russian Agroindustrial Complex
Methodical Aspects of the Decomposition Approach to the Formation of the Managerial Cost Accounting System in the Organizations of the Russian Agroindustrial Complex

Summary/Abstract: The development of market relations and the growing competitive struggle necessitate the introduction of modern methods of management and cost control by business entities. The purpose of the study is to develop a methodology for cost accounting and management in the industrial beet growing based on the decomposition formation of the management accounting system. The empirical data of 168 Russian agricultural organizations were used in the study, which allowed grouping these research objects according to the level of specialization, concentration, and intensification of production. On the basis of the business processes carried out in agricultural organizations, the classifier of responsibility centers was constructed, their main functions were revealed, and recommendations were developed for the decomposition formation of management accounting for selected centers based on segmentation of activities, which made it possible to improve the quality of information provided for the management of an economic entity. The mechanism of cost accounting and calculation of beet production regarding its quality was also developed and implemented, by means of modeling business processes within the framework of the proposed responsibility centers, enabling to determine the efficiency of the activities of the economic entity as a whole and of its individual structural units. The practical application of the developed measures provides many opportunities for generating more reliable information on the costs that is necessary for effective management.

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