ArticlePDF Available

Budget Efficiency for Cost Control Purposes in Management Accounting System



The article reviews the economical essence of budgeting in management accounting system. Budgeting represents the higher level of business development and allows focusing on long-term results, effective use of financial resources, business activities supervising, assists in making sound and timely managerial decisions. Budgeting helps to effective cost management and financial performance of the organization, allows you to compare all the planned costs and anticipated revenues for the coming period. DOI: 10.5901/mjss.2014.v5n24p79
ISSN 2039-2117 (online)
ISSN 2039-9340 (print)
Mediterranean Journal of Social Sciences
MCSER Publishing, Rome-Italy
Vol 5 No 24
November 2014
Budget Efficiency for Cost Control Purposes in Management Accounting System
Klychova G.S.
Kazan Federal University, Institute of Management, Economics and Finance, Kazan, 420008, Russia
Kazan State Agricultural University Kazan, 420015, Russia
Faskhutdinova ɇ.S.
Kazan State Agricultural University Kazan, 420015, Russia
Sadrieva E.R.
Kazan State Agricultural University Kazan, 420015, Russia
The article reviews the economical essence of budgeting in management accounting system. Budgeting represents the higher
level of business development and allows focusing on long-term results, effective use of financial resources, business activities
supervising, assists in making sound and timely managerial decisions. Budgeting helps to effective cost management and
financial performance of the organization, allows you to compare all the planned costs and anticipated revenues for the coming
Keywords: budgeting, purchasing budget, labor budget, (general) production cost budget, managerial decisions.
1. Introduction
Budgeting – is a process of planning future business activities, the results of which are documented with the system of
Normally, budget creation is done within operational planning. Based on strategic goals, budgets solve the issue of
distributing economic resources held by an enterprise. The major budgeting tasks are as follows: ensuring current
planning ; ensuring coordination, cooperation and communication within enterprise departments; cost justification;building
basis for evaluating and monitoring enterprise plans; executing requirements set in laws and contracts.The cost of budget
development and adoption is by far paid back by the advantages of a qualitatively drawn up budget and control over its
implementation. Budgeting implementation stages are: studying internal and external documentation of an enterprise, its
structure and interaction between structural units, management accounting tools, etc.; finding less painful ways of
involving management team into the budgeting process; elaboration of budgeting implementation plan (all further
activities will be determined by implementation plan); revision of old and elaboration of new internal standards;
information base creation for budgeting stipulating elaboration of new reports per structural unit, while reports need to be
related to the specifics of business activities; establishing new or restructuring older departments for budgeting process
delivery; developing or purchasing of software with further installation on internal network; staff training.
2. Theory
Implementing of budget management system is a rather lengthy process associated with informational and business
development of an enterprise. Prior to forming requirements for budgeting process, it is necessary to set budget
management goals and work out requirements for resources in use.
Common goals and objectives addressed when implementing budget planning and management methods are:
establishing of efficient operational and financial management; efficient operational planning of financial and economic
activity of the enterprise; optimization of resources utilization, reduction of production cost and cost budgeting
improvement by setting budgetary cost standards, effective control and variance analysis; improving cooperation and
ISSN 2039-2117 (online)
ISSN 2039-9340 (print)
Mediterranean Journal of Social Sciences
MCSER Publishing, Rome-Italy
Vol 5 No 24
November 2014
coordination between various departments for the purpose of achieving set goals; management performance and
assessment of department heads by means of comparing actual figures of monitored economic parameters (in the first
place, expenses) with the planned ones; staff motivation for achieving business goals; increasing business efficiency by
carrying out operative economic analysis of product portfolio and its optimization upon analysis results; finding out of
monetary resources demands and financial flows optimization; securing changes in organizational structure with the help
of modern management techniques.
In the present context any enterprise functions within the tough conditions of competitive environment and must
have a clear understanding of where, how and when available financial resources need to be used in order to increase
performance. One of the major tools used for managing commercial activities is budgeting.
It is known that saving and efficiency start when we begin to count spendings. It is assumed that budgeting is
operational planning tool essential for financial managers. Because managing is about setting particular goals, planning,
monitoring of approved plans, analyzing of results, finding out the reasons of variations and taking timely decisions
eliminating these discrepancies.
Budgeting is aimed at increasing efficient use of working capital, getting profit increase, making reasonable
investment decisions resulting in increased return on investments.
Budgeting is a technique of financial planning, recording and monitoring expenditures and income gained from
commercial activities at all levels of management and allowing analyzing of forecasted and achieved financial
performance. It is a process of elaborating, executing, monitoring and analyzing of financial plan covering all spheres of
business activities and allowing comparing all costs incurred and results achieved for the coming period overall and for
separate sub-periods.
The given methods have some disadvantages: conditional values are used for making related product types equal;
amount of sideline products received and used is not fully taken into account; analytical accounting does not single out
sideline product to reflect direct and indirect expenses in standard dimensions; quality of product produced is not taken
into account when calculating cost. Cow milk fat might vary from 2.5% and higher depending on natural and climatic
conditions, breed type and feeding practices. Thus, the given factor should not be ignored and a notice should be made
that cows from the main dairy herd breed various weights, whereas cost is allocated to 1 head of livestock.
Complication of the market situation, production, sales and other business processes make business management
and business planning more complicated. It takes a well-running mechanism of interaction between various units and
departments to deliver management objectives. From the prospective of business stability in competitive struggle, well-
established system of corporate planning covering all departments and using up-to-date methods of business
administration and high information technologies becomes more essential. Apart from that, manufacturing and
operational planning and management need to be connected with those of financial. That very system is represented by
the system of budget planning and management (budgeting).
Budgeting is a process of determining such parameters, planning movement of resources across the enterprise for
the specified future period. Production cost budget is formed based on livestock breeding production plan, which is, in the
first place, represented by average livestock, its productivity and the amount of product. Considering the specifics of
agricultural industry it is important to note that cost budgeting is, on the one hand, built on standards base, but, on the
other hand, on its technical and methodological tools and methods of its use in the process of planned calculations.
Accounting data is required not only when consolidated budget is drawn up but also at the subsequent stages of
budgeting cycle – monitoring and plan-fact analysis of budgeting frameworks. Management services must have both
budgeted (planned) and actual (budget implementation rates) figures to carry out accurate plan-fact analysis to be able to
budget subsequent period.
Therefore, integrated standard costing method (standard-direct-costing) is such an accounting system that
keeps record of business operations when the following is registered on all the stages of financial cycle and with a
breakdown to all major types of activities (product types), allocated into a separate budget planning object: planned
(budget) figures, actual figures, variance of actual and planned figures.
Present day financial theory and practice distinguishes budgeting as a subsystem of management accounting and
as informational system of corporate business management.
In the market conditions, budgeting becomes the basis of planning as the core management function. On the
whole, the significant features of budgeting, as a specific approach to managing operational and financial activities, are:
integrated combination of planning, accounting, control, analysis and business regulation in terms of managing financial
results and financial situation not only on enterprise level but also on the level of each structural unit (responsibility
center); coordinating major business activities (production, sale, finances) by means of coordinating respective budgets;
commitment to generic financial goals when making decisions on each level of management (including departments);
ISSN 2039-2117 (online)
ISSN 2039-9340 (print)
Mediterranean Journal of Social Sciences
MCSER Publishing, Rome-Italy
Vol 5 No 24
November 2014
widely involving managers of all levels into the process of budget planning and monitoring.
The second significant feature of integrated standard costing method is clear distinction between conditionally-
variable (accounts 20, 23, 25, 44 subaccount 44-1 «Direct selling expenses») and conditionally-constant (accounts 26
and 44 subaccount 44-2 «General selling expenses») expenses for the purpose management planning and, first of all, for
informational support of “cost-volume-profit” analysis when drawing up and analyzing sales budget, which, let us remind
you, is the starting point for consolidated budget simulation. English variant of integrated standard costing method is
called «standard-direct-costing» and it outlines two key aspects on which the mentioned accounting system is based.
Standard costing (standard-costing) — is a normative method of expenditures and financial results accounting. The
method proceeds from expenditures and revenue accounting that is maintained based on standard (planned) figures,
while variance is posted separately and is written off at the end of budget period to a respective stage of financial cycle as
a result of which actual expenditures and financial results are determined.
It is worth mentioning that planned figures in “standard-costing” system are registered twice: first, before the start
of budget period in the documents of management services (economic planning department, financial and economic
department); second, during and after the budget period upon actual booking.
Such approach is not a coincidence as it helps to separate plan variations from the effect produced by such
variations on financial results in terms of particular stages of financial cycle and separate business transaction. In fact,
different types of variations from planned indicators produce different effect on business depending on the time of
business transaction and financial cycle stage it applies to.
Market uncertainty makes it necessary to forecast the future, foresee possible changes in business conditions by
means of advance planning and monitoring, i.e. by budgeting.
Budgeting system covers the overall enterprise, including production, sale, distribution, finance, as well as
departments involved in certain types of financial, economic and production activities. Budgets are included in the
majority of enterprise monitoring systems and are widely used in standard cost accounting and calculation.
Budgets can be of various types and forms; separate budgets, characterizing interim transactions (purchase of raw
materials, production budget, etc.), may contain information on expenses or revenue only (sales budget), whereas
consolidated budget (profit and loss account, cash budget) show expenses and revenue of the enterprise. Every
enterprise chooses a particular form of budgeting on its own.
As a rule, budget period covers short-term aspect of planning (year, quarter), however, budgets dealing with capital
investments are drawn up for a longer period of time – five, ten years.
Budgets, characterizing production and sale costs or cost applied to launch of new technological process (raw
materials purchasing budget, administrative and commercial expenses budgets, labor budget, etc.) are based on sale
Materials purchasing (utilization) budget specifies purchasing terms and the amount of raw materials, materials,
semi-products that need to be purchased to fulfill production assignment. The amount of materials required to achieve
planned production figures is calculated in the following way: materials required for planned output minus materials in
stock at the beginning of the period. Multiplying quantity of material units by purchase price we get materials purchasing
(utilization) budget.
Labor budget specifies required labor time in hours necessary for planned output and calculated by multiplying the
quantity of production units (works, services) by labor cost standard in hours per product unit (works, services).
General production expenses budget represents detailed plan of estimated production expenses that cannot be
immediately included into the cost price of a particular cost bearer (maintenance costs, depreciation of fixed assets of
industry-wide application, etc.).
Cost of sales budget is based on the following formula:
Cost of sales = Opening stocks + Cost of goods manufactured in the planned period — Closing stocks.
Selling costs budget is a spending plan for production distribution in the future period.
Administrative expenses budget includes a plan of current operation expenditures differing from expenses directly
associated with production and sales but necessary in the future period for maintaining business activities. Generally,
those are fixed costs.
3. Results
Operating budget preparations are completed by elaboration of profit and loss plan. Based on the prepared current
budgets a forecast of profit and loss is developed and, in general, it looks like this:
Sales proceeds — Cost of sales = Gross profit — Operating (administrative, selling) expenses = Operating profit. See
ISSN 2039-2117 (online)
ISSN 2039-9340 (print)
Mediterranean Journal of Social Sciences
MCSER Publishing, Rome-Italy
Vol 5 No 24
November 2014
cost budget in table 1.
Table 1. Cost budget for milk production at «Ⱥk Bars Agro» LLC in the year 20ɯɯ in thous. rub.
ctual Plan
Milk sales proceeds 24256 23765
Product cost - total, thous. rub., including: 20657 18712
Labor cost with social security contributions 2890 2765
Feed 7592 7550
Energy 337 350
Fuel 580 667
Major and minor repairs of capital assets 2588 1880
Production and management set up 6670 5500
Profit, thous. rub. 3599 5053
In conclusion, it should be noted that the issue of implementing budgeting system becomes crucial due to:
1. The necessity of finding internal resources for reducing production and sales cost, justifying optimum costs for
financial means and, as a result, creating competitive advantages for the enterprise.
2. Tax policy optimization.
3. The necessity of increasing investment prospects of business, as the investor invests financial resources into
the company with high level of management organization.
Performance evaluation of the project budget shall be considered from the prospective of solvency ratio, which is
the major indicator of financial standing of the enterprise.
Estimated solvency ratio of the enterprise is calculated in table 2.
Table 2. Solvency ratio of «Ⱥk Bars Agro» LLC for the year of 20ɯɯ
ctual Plan Changes Standard
Current liquidity ratio 0,99 0,6 -0,39 0,2
cid-test ratio 0,6 0,5 -0,1 1
bsolute liquidity ratio 0,4 0,35 -0,05 2
Data in table 2 confirms that solvency in the projected year will reduce, which is proved by negative changes in liquidity
ratios. During the projected period current liquidity ratio at “Ak Bars Agro” LLC decreased by 0.39 points compared to the
beginning of the analyzed period.
When drawing up budgets, one can calculate estimated figures of profitability: return on assets, return on equity,
etc. In addition, budget preparations help with evaluating operating performance.
Let us evaluate project budget performance from the prospective of solvency ratio which is one of the major
characteristics of business efficiency. See estimated profitability figures in table 3.
Table 3. Profitability ratio of «Ⱥk Bars Agro» LLC, Arsk district of RT, %
Indicators Year 20ɯɯ Forecasted Variance
Return on sales 1,1 0,9 -0,2
Business profitability 1,0 0,7 -0,3
Return on assets 0,002 0.001 -0,001
Return on equity 0,04 0,02 -0,02
Data in table 3 shows downward changes of all profitability ratios, which negatively characterizes capital consumption
policy of the enterprise.
With the help of monthly, quarterly and annual estimates drawn up for every unit the level of expenditures is
effectively monitored by comparing actual figures to the estimated ones and by analyzing the reasons for deviation of
actual expenditures of estimates.
It is recommended to keep record of activity accounting for provision of information on actual implementation of
various estimated figures.
ISSN 2039-2117 (online)
ISSN 2039-9340 (print)
Mediterranean Journal of Social Sciences
MCSER Publishing, Rome-Italy
Vol 5 No 24
November 2014
Activity accounting assumes retrieving required information from financial accounting system, collecting data on
each responsibility center and providing reports comparable to estimated data.
By all means, such strategy guarantees constant liquidity but is quite expensive as credit commitments, as a rule,
cost much and require constant servicing. Big expenses on attracting funding, for example, debt financing, run the risk of
decrease in return on equity.
4. Conclusion
Therefore, it is obvious that suggested dynamic system of financial planning and budgeting will enable more efficient
management of financial resources, as budget is set synchronically “from the top” and “from the bottom” in close
collaboration with production department heads, as well as with the use of current production capacity for the purpose of
achieving targeted results set by top management.
Thus, it is apparent that the mentioned issues can be solved only by implementing dynamic system of financial
planning and budgeting, which, in every particuar case, will suggest a proven solution for a specific question. «Ⱥk Bars
Agro» LLC is suggested to use various budgeting methods and dynamic budgeting model for solving the given tasks.
Godin Ⱥ.Ɇ. Budget and budgeting system. – Ɇ.: Publishing house Dashkov and K, 2001. – 276p.
Zalevsky V.Ⱥ. «Budgeting as control tool systems of management and analytical cost system» // Management accounting. – 2009. - ʋ
3. p.98
Ivashkevich V.P. Management accounting: college textbook. - Ɇ.: Economist, 2004.- 618 p.
Klychova G.S. Economic essence and content of budgeting process in management accounting/G.ɋ. Klychova, A.R. Ziyatdinova, M.S.
Faskhutdinova //Kazan State Agricultural University Herald ». -2007. -ʋ2. -S. 48-51.
Minina I.D. Using Direct-costing in production cost analysis// Collection of articles of IV All-Russia research and practice conference.-
Penza: RIO PGSKhA, 2007. – 259 p.
Ɇɨrozkina S.S. Output calculation for business and management accounting // Everything for an accountant. – 2007. - ʋ 15.
Larionov Ⱥ.D. Standard accounting practice? Essence, experience and implementation issues. – SDNTP, 2001. - 158 p.
Safiullin N.Z., Klychova G.S, Zakirova A.R. Organization of cost accounting of fur farming in controlling concept. Mediterranean Journal
of Social Sciences.- Vol.5, No18, (2014)-pp. 219-222.
Shigaev A.I., Needles B.E., Powers M., Frigo M.L. Operating characteristics of high performance companies: strategic direction for
management. Operating characteristics of high performance companies: strategic direction for management.
Derzayeva G.G., Akhmadieva G.G. The methodology of transition on the pricing of the cost of production for budgetary institutions. Life
Science Journal, 2014; 11(11s): 589-594.
Ɉlokhtonova E.Ⱥ., Ɍulegenov E.Ɍ. Implementing standard accounting practice. – Ɇ.: Finance and statistics, 2000.- 250 p.
... Budgeting contributes to the organization's efficient cost management and economic results, allowing the comparison of all anticipated expenses and desired profits for the coming era [33]. The research Warue and Wanjira [34] discovered proof in evaluating the budgeting process of SMEs that company size was negative and substantially linked to budgeting. ...
Full-text available
The purpose of this study was to propose a training scheme based on the findings. This study aimed to evaluate the Financial Management System (FMS) of firms dealing with agricultural inputs. It was found from various literatures that the absence of a clear financial management system could lead to corruption, theft, fraud, data insecurity, and inability to monitor profit. In discussing these problems, this study considered accounting system, budget control, financial capability, and internal control which were moderated by firm age and size. The study employed quantitative, non-experimental, descriptive research design. There were 72 agricultural enterprises that participated in the study. Result reveals that the overall level of FMS among small scale agricultural industries is high. Further, there was a significant difference in the level of FMS among respondents when analyzed by firm size and age. A training scheme on budgetary control is designed because it registered the lowest measure among the indicators of FMS.
... Anggaran adalah suatu proses perencanaan kegiatan bisnis masa depan , yang hasilnya didokumentasikan dengan sistem anggaran (Klychova : 2014). Anggaran dapat dianggap sebagai instrumen planing serta controling operasi keuntungan dalam organisasi laba dimana tingkat formalitas budget tergantung kapasitas organisasi. ...
Good governance is an eminent issue in the management of government administration today. The implementation of local government can not be separated from the use and utilization of budget and regional income. And every year it is always the local goverment preparing a budget plan or called regional income and expenditure budgets . The purpose of this study analyzed the budget realization report to assess the effectineness and efficiency od government performance in aggriculture and livestock servive of North Sulawesi Province period 2012-2014. Data analysis method used is data analysis calculation of effectiveness and efficiency. Level or criteria of effectiveness of expenditure budget in agriculture and livestock service of North Sulawesi Province 2012-2014 vary for effevtive use the budget is quite effective in 2012 and 2013-2014 effective budget usage. So overall from 2012-2014, the level of effectiveness of agriculture and livestock expenditure budget of North Sulawesi Province experienced an effective increase. In the implementation of agriculture and livestock expenditure budget of the province of North Sulawesi in 2012-2014, already well processed and very efficient. Implementation of the 2012-2014 budget is categorized as very efficient because the efficiency level below 60%.Keywords : efficiency, effeectiveness, budget
... At the same time, the activities of the firm in which decisions are made on a regular basis to participate in the tenders, even on the basis of partial coverage of irrelevant costs can seriously be impaired by reducing the difference between revenues received by the organization for the period, and uncovered irrelevant costs for the same period. In other words, the greater is the number of non-won tenders, the greater is the amount of irrelevant costs, and operations company -less effective (Klychova, Faskhutdinova, & Sadrieva, 2014;Safiullin, Klychova, Nizamutdinov, & Mavlieva, 2014). This is especially true for newly established organizations traditionally having difficulties in finding regular customers and orders, as well as for all organizations operating in the crisis period, when the number of tenders is limited, so the owners are forced to take risks by setting low prices in the hope that a subsequent tender will be won and cover a part of non-return costs (Hopwood, 2008;Ittner & Larcker, 2002;Bebbington & Thomson, 2013). ...
The paper describes the features of relevant approach for decision making to participate (or not participate) in a tender for appraisment of land. The basis of this approach is the following: the greater is the number of non-won tenders, the greater is the amount of irrelevant costs, and company operations are less effective. Thus, the approach to use relevant and non-relevant indicators should be applied not to a particular tender, but at once to a group of tenders. This transforms the traditional notion of relevance and suggests that in certain situations the irrelevant costs are unchanged, and the presence of a negative relevant result, as to one of the orders, does not lead to the automatic rejection of its execution.
Full-text available
This study aims to determine the use of budgets in Makassar city government agencies, to determine the accountability system for budget use at the Makassar City Manpower Office and to determine the application of Islamic principles in creating accountable use of budgets in the Makassar City Manpower Office. The method in accordance with this research is qualitative research methods. This type of research used in this study is a type of qualitative research based on a descriptive analytical approach. The type of data needed by researchers in this study includes secondary data. The instruments used by researchers in this case are the main instruments and supporting instruments. The principal instrument is the journal itself. In addition, this research was also conducted by downloading the required data. The results of this study that the budget allocation in the Makassar SKPD has been realized effectively or it is commonly said that the use of budgets in the Makassar government agency has run accountably. The accountability report for the use of budgets at the Makassar city manpower office has been presented in an accountable manner and the realization of the budget is in accordance with the expected objectives. Carrying out accountability as a manifestation of accountability based on shidiq, mandate and tabligh can motivate each individual to create an accountable budget realization report.
Conference Paper
Full-text available
This article represents a study examining the structure and properties of enterprises with the focus to the success of innovation projects in the Czech Republic. The reason is that not all innovation efforts are successful in terms of percentage share successfully implemented and realized innovations. For many small businesses, unlike large firms, has the character of innovation rather arbitrary and ad hoc process that is not formalized or project driven and therefore they are not predominantly successful. However, the ability to innovate is increasingly viewed as the most important factor in developing and sustaining competitive advantage. With a focus on innovative projects at the micro level of companies, this paper is based on primary research questionnaire survey with a random selection of 527 and total return of 157 respondents. The major analytic procedure comprises methods of correspondence analysis and validation technique based on chi-square nonparametric tests and for transparent representation of the structure of dependence and interpretation is used symmetric correspondence map. This research study contains the results in terms of the share successfully innovation projects companies due to the size and other factors that affect them.
Full-text available
The study considers methodological aspects and tools of decision-making in the economy by the aggregated indicators. It has outlined the main problems which occur by the implementation of multi-criteria optimization. The authorial methods of the effective plurality formation and the preferred alternatives definition have been formulated.
Full-text available
This article notes significant collaborations and partnerships adopted as training strategies applied for improving national skill development. The discourse followed here critically different roles and functions of structures such as public agencies, academic institutions, private sector and non-governmental training providers regulated by law. Scholars in various fields noted benefits and challenges of collaborative management and partnerships in training and skills development that enhance effective resources management, facilitation and participation of stakeholders in various organisations. Using a qualitative approach, this theoretical article argues that academics played a significant role in collaborating with policy-makers to up-skill the civil force. Even though, there are numerous actors at multi-level governance with diverse training needs and interests, there are still gabs in the model adopted by government to provide training of public officials in South Africa. Therefore it is recommended that the Government through the National School of Government should monitor and evaluate the effectiveness of these collaborations and partnerships to provide continuous improvement.
Full-text available
The state represented by bodies of regional and local authorities with the help of public-private partnership projects will be able to move from direct budgetary financing of projects to a promising model for attracting private funds, thereby increasing the efficiency of their operations. There is a need to strengthen the system of interaction between government and the private sector, as it will lead to the creation of conditions for increasing the competitiveness of the public sector through more effective use of state property, investment in the economy, modernization of industrial and social infrastructure, improving the quality of goods, works and services. DOI: 10.5901/mjss.2015.v6n1s3p453
Full-text available
The article discusses the criteria of the faithfulness of financial reporting, defines the content and the degree of the accountant and auditor’s responsibility for the faithfulness of its indicators. The given measures are recommended to strengthen responsibility for the quality of accounting and reporting in commercial organizations. The article also defines the main subjects who bear financial losses by using data of unfaithful financial reporting of commercial organizations and the basic problems in assessing responsibility for the faithfulness of the statements. DOI: 10.5901/mjss.2015.v6n1s3p357
Purpose-The present study investigates whether companies that exhibit high performance characteristics in the pre-financial crisis period can maintain their high performance in the financial crisis period of 2007-2009 and, in particular, the post-financial crisis period of 2010-2011. Methodology-The current study of 1,473 companies in 25 countries and 66 industries (MSCI index) (1) extends the empirical research of prior studies through the year 2011; (2) identifies the operating characteristics (performance drivers and performance measures) and associated risk factors which were most critical with regard to sustaining, exiting, and entering HPC companies during the five 10-year periods since 1998-2007, and (3) summarizes conclusions about HPC results from the 13 ten-year periods (1989-1998 to 2002-2011) in this stream of research. Findings-(1) Companies that sustain high performance over periods of financial stress clearly excel in asset turnover performance driver and on the performance measures of growth in revenues, profit margin, return on equity and return on assets. Sustaining HPC had less debt than other companies and consistent cash flow yields. Operating turnover ratios became less important in recent years as an indicator of high performance. (2) Although exiting companies maintained profitability, financial risk and liquidity, the key factor in their dropping out of HPC status is their failure to grow revenues. (3) Entering companies did not exhibit the superior performance in all categories. Practical implications and value-The results provide strategic direction for management of companies that aspire to HPC status and to maintain HPC status once gained, particularly in times of global financial stress.
In this paper we study controlling as internal management of organization system by creating a specific plan-monitoring mechanism for informational and analytical support, coordination and integration of all management subsystems to achieve the organization goals for its sustainable and efficient functioning and development. The forms of controlling registers are offered as a way of forming factual information to manage costs and profits within the controlling concept of fur farming. DOI: 10.5901/mjss.2014.v5n18p219
Budget and budgeting system
  • References Godin
References Godin.. Budget and budgeting system. -.: Publishing house Dashkov and K, 2001. -276p.
Budgeting as control tool systems of management and analytical cost system» // Management accounting
  • V Zalevsky
Zalevsky V.. «Budgeting as control tool systems of management and analytical cost system» // Management accounting. -2009. -3. p.98
Management accounting: college textbook
  • V P Ivashkevich
Ivashkevich V.P. Management accounting: college textbook. -.: Economist, 2004.-618 p.
Using Direct-costing in production cost analysis// Collection of articles of IV All-Russia research and practice conference.-Penza: RIO PGSKhA
  • I D Minina
Minina I.D. Using Direct-costing in production cost analysis// Collection of articles of IV All-Russia research and practice conference.-Penza: RIO PGSKhA, 2007. -259 p.
Standard accounting practice? Essence, experience and implementation issues
  • D Larionov
Larionov.D. Standard accounting practice? Essence, experience and implementation issues. -SDNTP, 2001. -158 p.
The methodology of transition on the pricing of the cost of production for budgetary institutions
  • G G Derzayeva
  • G G Akhmadieva
Derzayeva G.G., Akhmadieva G.G. The methodology of transition on the pricing of the cost of production for budgetary institutions. Life Science Journal, 2014; 11(11s): 589-594.
Economic essence and content of budgeting process in management accounting
  • G S Klychova
Klychova G.S. Economic essence and content of budgeting process in management accounting/G..