Theoretical framework of accounting and analysis for value-based management

Abstract

The concept of value-based management is one of the newest cost management technologies of an enterprise. Purpose of this paper: to justify that value-based management accounting and analysis will allow creating an information base for understanding the result of an enterprise activity from the standpoint of the actual value growth. Results: using the methods of analysis, the authors defined the concepts of value-based management accounting and analysis, and revealed their advantages as compared with the financial indicators of an enterprise organization for performance evaluation. Research applications: senior management and company managers can use the results achieved in this study for the effective development of an enterprise.