IMPORTANCE AND ROLE OF COST ACCOUNTING IN COMPANY CRISIS MANAGEMENT

Abstract

Company crisis could be defined asa process in a period of time that unexpectedlythreatesn the realization of the mission and goals ofthe company. As such, it has been present forseveral years both in highly developed countries ofthe world and in our country. The causes of thecrisis can be numerous, and the current crisis inour business is in many ways specific, and requiresa large extent and greater involvement ofmanagement structures in the detection andelimination of consequences caused by the crisis. Inthis regard, the management structure must focusattention to high-quality accounting - informationsupport, which results from adequately establishedconcept of managing accounting. Appropriate,timely and relevant information on economicperformance are necessary for its success, which atthe same time assume the role of control and/ordispositive crisis management instruments in thecompany. The information derived from managingaccounting as a quality base for decision makingshould enable recognition of symptoms and causesof the crisis, as well as crisis prevention andassessment. The paper recalls the specific and mostcommon causes of the crisis in the company, as oneof the important issues, especially in the globaleconomic crisis. In addition, the paper will pointout the importance of setting realistic goals andpossibilities to prevent the crisis. Finally, wehighlight the importance of cost accounting inorder to overcome the effects of the crisis.

Keywords

• crisis
• company
• managing accounting information
• managing accounting
• cost accounting
• cost accounting methods