Management accounting in the conditions of application for the product life cycle concept

Abstract

Purpose: the authors justify the developed management accounting system in the information formation about the cost of products at each stage of the life cycle, the reserves for optimization costs associated with product development, operation, production. Discussion: integration processes in the world economy, globalization of economic relations, require economic entities to improve the system of information generation for making effective management decisions. At the same time, for stable functioning in the current conditions, enterprises must meet the requirements of flexibility, adaptability to changes in the external and internal environment, the ability to permanently improve the structure of products, as well as the transformation of their own organizational structure. All this requires more and more timely and high-quality information for management in order to make effective and timely management decisions. Happened changes in the composition and information needs of users, increased requirements to the system of accounting and analytical support enterprise management to ensure high product quality and low cost in a highly competitive environment in market conditions. The principles, tools and methods of information generation used by domestic economic entities are not sufficiently effective, since they are mainly focused on collecting information in the financial accounting system, while in the West such information constitutes only 10% of all accounting and analytical work. Thus, the development and improvement of conceptual and applied aspects of management accounting is an actual and practically significant task that can increase the competitiveness of domestic enterprises. Results: the authors presented an Autonomous system of accounts management accounting using free positions of the accounts chart in accordance with the life cycle of the product. In addiction the authors supposed the account of the first, second and third order required for the formation of the information base, allowing for prompt and effective management of the economic subject.