MANAGERIAL ANALYSIS AS ANALYTICAL FUNCTION OF MANAGERIAL ACCOUNTING

Abstract

The article deals with the essence of management analysis, its origin and the difference of economic and financial analysis. It gives a comparison of different economist’s views to the interpretation of management analysis. The view of Lakhtionova L.Ya. is taken. It determines financial analysis as external and internal analysis of the operational results and financial condition of the enterprise, financial relations, aggregate of financial resources and their flows in a single production and trade process, and management analysis – internal economic analysis (analysis material, labour resources, analysis of fixed assets, analysis of costs and benefits and cost of production). Management analysis is an economic analysis, adapted to the specific goals and objectives of the entity and includes management problems.
Its relationship with the management accounting and the importance of its conducting for the management of the enterprise is revealed. The main objective, objects and subjects of the administrative analysis research are highlighted, functions, characteristic features and methods of its realization are formulated.
The purpose of management analysis is to provide chief officers, managers with data for making decisions: improve the company’s efficient performance, optimize resources, improve quality indicators, evaluate the achieving of the strategic goals of the enterprise etc.. The objects under analysis are labour, material resources, their use and level of enterprise security, their quality, operating expenses, company’s income from basic and other operating activities, actual liquidity and solvency indicators in comparison with established plans etc.
The information that is prepared during managerial analysis is characterized by the mobility (velocity), the possibility of its graphical representation for indicators comparison, individuality within each enterprise and decentralization of calculations by management levels.