Decision making using a combination of management accounting and an expert approach
This paper focuses on the questions of combining management accounting and an expert approach for decision making in the sphere of economics and management. The background of such a combination is that within both approaches there are a decision making goal, a set of alternatives and criteria for their assessment, as well as the possibility of multivariate evaluation of the alternatives for different possible situations. The basic decision making processes provide similar data processing. Their scope relies on classification of assessment criteria into three types: quantitative criteria, for which source information for management accounting is available, quantitative criteria with lack of source information for management accounting, and qualitative criteria, for which management accounting methods are not applicable. Relying on such classification, four basic processes are defined: pure management accounting, management accounting supplemented by estimates according to predefined rules, management accounting supplemented by expert estimates, and the pure expert approach. Relying on different basic processes, fifteen working processes (including the generalized working process including all four basic processes) are defined. Conclusions are made regarding the practical applicability of different working processes, depending on the scope of decision making criteria. Approval of the combined approach is performed with the help of an example of investment appraisal relating to a manufacturing company’s development, using three classic management accounting criteria (payback period, net present value, internal rate of return), and three criteria of a qualitative nature.
In the article the most significant milestones in the development of accounting thought in Italy are considered in terms of the formation of the modern concept of management accounting (MA). The core content of the Italian accounting school authors since the early Renaissance to the mid-twentieth century is compared with modern interpretations of the subject area and methodology of MA. In the theories and attitudes of theorists and practitioners highlighted the key elements relevant to MA objectives, functions, approaches. It is shown that the holistic nature of Italian theories leads to the interpretation of accounting as the general managerial science.
The Chapter on Russia deals with the particularities of decision-making methodology used by the Supreme Court of Russia, in comparison with that of the US Supreme Court. It offers an overview of the Russian Supreme Court jurisdiction, justiciability and standing and the main issues arising in these areas.
Measuring the value of IT is always a challenge for investors. Market share for service oriented Information Systems (IS) is constantly growing and it creates the demand for methods of measuring the value of SOA-based IS projects. This research is aimed at adopting existing IT Project assessment methods to this growing demand. The work proposes the method that considers the fact that SOA-based IS deployment and evolution could be split in separate flows, one per service. It will allow usage of individual discount rate values per service since project risk values should be different for different services. It should make project value assessment more accurate comparing to existing methods which use the single flow for the entire project. This research also proposes Real Options for calculating the flexibility fraction of the value. The developed method was verified using own simulation model. Both developed method and the simulation model were applied to value assessment of a real-world project.
In authors' previous paper published in 2011 in «Control Sciences» journal one example of a bi-criterion decision analysis problem demonstrating that the use of Analytic Hierarchy Process (AHP) may lead to a clearly erroneous result is given. However, the author of another paper published in 2012 in the same journal suggested that he found an error in our use of AHP and, consequently, our criticism of AHP is unsubstantiated. In this new paper the authors show that there was no mistake in the use of AHP in their original counter-example, and provide two further counter-examples that support their original conclusion.
Measuring the value of IT is always a challenge for investors. Market share for service oriented Information Systems (IS) is constantly growing and it creates the demand for methods of measuring the value of SOA-based IS projects. This research is aimed at adopting existing IT Project assessment methods to this growing demand. The work proposes the method that considers the fact that SOA-based IS deployment and evolution could be split in separate flows, one per service. It will allow using individual discounts rate values since project risk values should be different for different services. It should make project value assessment more accurate comparing to existing methods which use the single flow for the entire project. This research also proposes Real Options for calculating the flexibility fraction of the value. The developed method was verified using own simulation model. Both developed method and the simulation model were applied to value assessment of a real-world project.
In this paper we consider choice problems under the assumption that the preferences of the decision maker are expressed in the form of a parametric partial weak order without assuming the existence of any value function. We investigate both the sensitivity (stability) of each non-dominated solution with respect to the changes of parameters of this order, and the sensitivity of the set of non-dominated solutions as a whole to similar changes. We show that this type of sensitivity analysis can be performed by employing techniques of linear programming.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The Working Paper examines the peculiarities of the Russian model of corporate governance and control in the banking sector. The study relies upon theoretical as well as applied research of corporate governance in Russian commercial banks featuring different forms of ownership. We focus on real interests of all stakeholders, namely bank and stock market regulators, bank owners, investors, top managers and other insiders. The Anglo-American concept of corporate governance, based on agency theory and implying outside investors’ control over banks through stock market, is found to bear limited relevance. We suggest some ways of overcoming the gap between formal institutions of governance and the real life.
At present many industries reveal tendency for setting up of vertically integrated companies (VIC) the structure of which unites all technological processes. This tendency proved its efficiency in oil industry where coordination of all successive stages of technological process, namely, oil prospecting and production -oil transportation - oil processing - oil chemistry - oil products and oil chemicals marketing, is necessary. The article considers specific features of introduction of "personnel management" module at enterprises of oil and gas industry.
vertically integrated companies; personnel management