Management accounting in the practice of Bulgarian agricultural farms

Abstract

The aim of this paper is to apply management accounting as a model of management in the practice of agricultural farms in Ruse and Targovishte through a management information system to increase the efficiency of their activities. The purpose of the study is realized through the implementation of two main tasks: 1. specifics of the agricultural sector in the application of management accounting, 2. management information system in the activities of agricultural farms in accordance with the objectives of management accounting. Research methods are based on the use of general logical methods of analysis and synthesis, abstraction and generalization, deduction and induction. Management accounting both as a theory and practice in Bulgarian farms combines the techniques of financial accounting, finance, planning, analysis and control of economic activity, with the aim of long-term planning of costs, revenues and financial results. The purpose of this is a successful long-term planning of costs, revenues and last but not least the financial result. The information base provided by the accounting regarding the financial resources of the agricultural holding allows research of the expenses, calculation of the prime cost of the agricultural production, analysis, planning, budgeting and control of the occurred deviations, as well as differentiation of different centers of responsibility by applying the management accounting sector. Management accounting is an integral part of the overall process of financial management of Bulgarian agricultural farms, putting the emphasis on ensuring control over liquidity and profitability within certain limits and parameters.