New approaches to internal control of measuring enterprise expenditure

Abstract

Significance. Stability and development of the meat processing enterprise in a competitive market depends, first of all, on the efficient cost management system. This system collects and organizes cost data as well as provides information so that managers can make decisions just in time and most efficiently. An integral part of the cost management system and, at the same time, the most important tool for a meatprocessing enterprise to show high economic performance is an efficient internal control system that ensures its profitability, sustainability, competitiveness and production efficiency.

The main goal with the introduction of a contemporary system of internal control at the meat processing enterprises is replace the old practice of using only accounting control costs with more balanced internal control system, that is decentralized and the key functions are delegated to all levels of the management with the responsibility and accountability personified.

Objectives. The purpose is to determine the essence of "responsibility" and "accountability" concepts as components of the internal control system, to specify their content, taking into account modern approaches for understanding the managerial accountability system; to develop guidelines for its integration into the internal control system to increase the efficiency of cost management the meat processing enterprise.

Methods. During the research, scientific methods based on the dialectic of cognition and objective laws of economic development were used. The methodical research toolkit consists of general theoretical and special methods of scientific knowledge: analysis and synthesis, comparative characteristics. In order to study the essence of "responsibility", and "accountability" concepts, and the development of proposals to improve the internal expenses control system, a systematic and integrated approach has been applied.

Results. The purpose of internal control of expenses is to achieve the managerial goals in providing the most positive results of the enterprise by optimizing the use of resources and minimizing various risks in the process of their use.

The goal is to identify the centers of responsibility of the meat processing enterprises, which makes it possible to exercise control at all levels of enterprise management, to use specific control methods taking into account the specifics of each unit's activities, to identify the perpetrators of unproductive costs and, ultimately, to substantially improve the efficiency of the operation of the cost management system . Formation of centers of responsibility of the meat processing enterprise allows solving not only the problems associated with obtaining complete and operational accounting and control information for the adoption of management decisions, but also the problem of personalization of responsibility for the results of internal costs control of meat production. Clear delineation of powers for each operational manager and employee, the establishment of a procedure for power execution when one of them is temporary absent, ensuring the availability of necessary knowledge, experience and skills required for the implementation of delegated authority is the basis for the formation of a system of managerial responsibility and accountability, which are indispensable components of internal cost control.

The current practice of meat processing enterprises shows that the traditional understanding of the "responsibility" and "accountability" concepts makes it impossible to form a contemporary system of internal control of costs, the functioning of which should be based on individual responsibility and managerial accountability, which guarantees achievement of maximum results of optimization of enterprise resources. Therefore, it is important to fill in the new meaning of the term "managerial accountability", which is related to the introduction of efficient and result-oriented costs management, which is based on the managers’ responsibility from the operational management level to senior management for the organization of the internal control system of expenses in the units managed by them, and the senior management for compliance with the cost management policies of the enterprise as a whole. This approach to understanding managerial accountability forms another specific meaning of this term, combining accountability, accountability and responsibilities for internal cost control.

The basis of managerial accountability is the delegation by the head of the center of responsibility for certain responsibilities to subordinated executives of the operational level of management with the obligatory reporting and accountability for their implementation. At the same time, managerial accountability should not be limited to controlling the compliance of actual costs with the established norms and standards and evaluating the deviations, but must concentrate on the issues of resource efficiency, so the reporting dominant should become effective in reaching certain variables.

Opportunities for research and directions for further work. Subsequently, detailed research is required to specify the stages to form a managerial accountability system of subjects of internal control and its integration into the management costs system for the meat processing enterprise.

Keywords: costs, internal control, accountability, responsibility