Cost and management accounting project in Germany

Advertisement

The object of the project group

Taking into account the proposed municipal budget in the regulation of the project group minimum requirements is a template for a cost accounting policy should be developed, in which the essential components of a meaningful cost accounting are regulated.

The aim of the work of the project group

Create a cost accounting policy by which municipalities may establish an aligned according to local needs cost accounting independently. With the cost and management accounting administrative control of the respective community should support and economy will be judged in the performance of work.

Legal basis

§ 12 GemHVO - cost and management accounting
(1) According to local needs to be conducted as a basis for management control as well as for assessing the efficiency and performance of all tasks a cost and management accounting.
(2) The costs and revenues to be derived verifiable from the records.
(3) The Mayor or the Mayor lays down the principles of the nature and extent of cost accounting in a service statement and submit it to the local council for information.


Summarized results of work

1. Importance of cost accounting in the new budget law
Under the new budget law, the cost accounting will play a special role. The components of the external accounting (balance sheet, income statement, financial statement) aimed at target groups within and outside the community, such as municipal, municipality or citizens, and provide information about the structure of community assets as well as financial flows and the conclusion of the annual results. In contrast, the cost and management accounting is an exclusively internal management tool, which is primarily based on the information needs of the local council and the leaders of the communities. Due to the cost and management accounting can be an important objective of the new budget law, namely the determination of resource use within a community, to be implemented. It also provides the use of resources (input) in relation to the created services (output). In order for the connection between the performance and the associated cost is produced, which in turn is a prerequisite for the formation of product budgets.


Specifically, the cost and management accounting
Make transparent • cost of administrative processes and be part of decision-making basis for its efficient design,
• be used as a planning, management and control instrument
• calculation basis for determining its cost-recovery fees,
• with his decision basis of services performed by the community itself provided or to be made a contract award to a third party (make-or-buy decision)
• make the data available for inter-communal comparisons (benchmarking).
Share This
Previous Post
Next Post

0 comments: