Management accounting in the economic entity’s and processes activities’ evaluation

Abstract

Purpose:  The author's evaluation of the economic entity’s and process activities’ key performance indicators (KPI) methods.  KPI calculation and evaluation of the economic entity’s KPI, as well as basic, supporting, economic entity management processes (infrastructure and economic service) by the appropriate efficiency and effectiveness scale of indicators. Discussion:  The relevance of the key performance indicators (Key Performance Indicators (KPI)) practical application in the activities of not only foreign, but also Russian economic entities makes it necessary to develop an appropriate methodical provision of KPI usage in Russian economic entities’ and process activity’s effectiveness evaluations. This problem is solved with the help of appropriate KPI calculation methods formation and the evaluation of its values by the efficiency and effectiveness scale of indicators and criteria for  the economic entity and its processes. These developments are reflected in the article. Results: The evaluation of the economic entity’s key performance indicators (KPI) method and the evaluation of the basic, supporting, economic entity management processes (infrastructure and economic service) activities’ were developed. The efficient, satisfactory and border KPI values were detected. The weights of KPI in the integrated indicator of economic entity efficiency were set. It is concluded that it is necessary to increase objectivity in establishing of the KPI efficiency quantitative criteria including using of quantitative methods applied to economics and management, including a modern IT-technology, neural networks in particular.