Improvement of management decision-making process

Abstract

The article reveals the improving the process of managerial decision-making,
business responsibility centers. The basis of the analytical management
accounting at the enterprise is identifying cost centers and the creation of
centers of responsibility. Nowadays, there are different classifications of the
centers of responsibility are exist, and often referred to them in different ways,
depending on the areas in which they operate. At the organization of cost
centers needs to pay close attention to the statements of all the individual responsibility
centers: in the reports should be clearly separated controlled and
uncontrolled costs. According to some experts, uncontrolled articles should
not be included in the reporting in general. In reality, however, references to
these costs can lead to a positive result, because it can encourage responsibility
center manager to better management of them. Therefore, to make the
work of the enterprise management system effectively, it is necessary at the
first stage to determine the responsibility centers, in the framework of which
the cost are formed, to classify these costs and, thereafter, to take advantage
of cost-control system and management accounting. As a result, head of the
enterprise will have more opportunities in terms of early detection of “dangerous
places” in the planning and building costs, which will allow him to better
make the best decisions in the field of management.