Professional Documents
Culture Documents
Terminology
Introduction and the reason for research topic
Research context
Research objectives
Research hypotheses
Research methodology
Brief presentation of chapters of PhD
Conclusions, contributions and research perspectives
PhD thesis
Selected bibliography
Curriculum vitae
Scientific papers
OPPORTUNITIES FOR IMPROVEMENT AND IMPLEMENTATION
OF MANAGEMENT ACCOUNTING IN PUBLIC CULTURAL
INSTITUTIONS
The issue of financing culture is vast, and while controversial, with pros and cons
sufficient to state support of culture in general, and the proportion of funds allocated to
various cultural fields, depending on the strategies adopted by each country.
In this paper I try to expose the activities of public cultural institutions, which in
recent years have made special efforts to meet the challenges of a growing unstable economic
and social environment, aiming to maintain the quality of cultural services, all these problems
getting worse on the merits phasing out budgetary funding.
The role of culture in the public debate on the future of humanity is sustained by
political arguments. This requires an understanding of culture as a factor of social
development and not as a consumer finance public sector. In this sense, culture is a tool for
achieving other social and economic (economic and educational benefits, social cohesion) and
must be understood as a value with transectorial dynamics.
More and more research points out that public institution alike private organizations
should also be market-driven and consumer-oriented. In this context, public institutions must
adopt strategies from the business world to better understand profitability in a competitive
market and how to better serve all the parties implied. Culture consumption is growing and
growing and public intitutions need, more than ever, to turn to the expectations of their
customers. These institutions require great financial resources to operate. Attracting,
allocation of resources is not sufficient, is necessary to pursue the opportunity, necessity and
effectiveness of their use.
This research started from the premise that the implementation of management
accounting in public cultural institutions have become a practical and indispensable activity of
these institutions as it not only allows a better understanding of the costs but it also enables
forecasts respectively provide the means and tools to further execution decisions, to
achievement of projections established and organizational performances expected.
Accounting reform in Romania began with the development and adoption of the
Accounting Law in late 1991 and generalized by introducing in 1994 new general plan
accounts, with the objectives to shift from monism to dualism accounting and to place the
account entity information system component in a superior position, corresponding to the
requirements of the economic environment. Decentralization of activities of entities
determined the beginning for managers to reconsider their attitude towards management
accounting. Increasingly, they are obliged to inform in detail about what happens in
institutions run, for which analytical data must rely on management accounting provided. For
now, this area began to impose, so a replay, better systematized, has become a necessity.
The move was prompted by legislation and in such a way the present paper can be a platform
for a more qualified approach. We cannot have any doubts for the need of a monograph, a
special course of a management accounting textbook of public institutions in culture, its are
expected to be necessary.
Cultural institutions have increasingly greater need to evaluate and communicate to all
parties involved the value of the cultural product or service. Faced with reduced public
funding institutions have become more aware of the cost issue. Costing and financing of these
costs is the main objective of public cultural institutions that play a fundamental role in
society and the economy.
It is necessary to emphasize the overwhelming importance of management accounting,
which is the one that should help management of cultural institutions in making decisions and
solving internal problems that occur during the "life" of it.
The role of management accounting in a public cultural institution is not itself to know
the cost of cultural services but especially to help the intention to act on it. Under a production
environment as a public cultural institution, where the services are heterogeneous and delivery
processes are complex, it is very difficult to determine the cost of each cultural service
provided. Therefore it becomes essential to know not the cost of the service but more
important its cost of supply. Extent that a public cultural institution achieves its objectives
are reflected through a several financial indicators of which is determined largely based on
data from management accounting.
Although the application of management accounting in public institutions is not
regulated in comparison as it is for economic agents, nothing prevents leaders of public
institutions to organize their management accounting on the assumption that management
accounting is suitable in respect to planning, control and evaluation of programs and services
of the public institutions. Its purpose is to provide information to meet the specific needs of
different hierarchical levels of management and decision making in their field, and to ensure
appropriate and responsible use of resources.
Researcher’s interest in practice is essential because as a user of financial accounting
information processing, management of these institutions should provide the best solution to
the needs of decision-making, to answer specific questions regarding the organization filing
financial sector - accounting.
These are some of the reasons developed in the present PhD thesis entitled "Opportunities for
improvement and implementation of management accounting in public cultural institutions".
3 Research objectives
4 Research hypotheses
The research in this paper was an empirical study based on the investigation
conducted using a questionnaire addressed management of cultural institutions in Prahova,
Buzau and Dambovita, Arges and Bucharest.
Questionnaire includes 24 questions with predetermined response options and was
prepared taking into account the requirements of form and content, mode of expression,
question formulation rules imposed so that questions are clear and easily understood by all
respondents surveyed, and so the data collected to be valid and reliable answers.
To meet the objectives of the paper, I propose the following research hypotheses:
I1.Public cultural institutions in Romania deemed necessary and appropriate
organization of management accounting and cost calculation;
I2.Public cultural institutions in Romania know the benefits of organization
management accounting and cost calculation;
I3. There is a preference for abc method as a method of management accounting;
I4. There is a significant association between class institution in terms of type of work
performed, on the one hand, and types of management accounting methods that could be
applied, how to record income and expenditures and why would implement methods costing,
on the other hand;
I5.There is a significant association between class institution in terms of the financing,
on the one hand, and the importance of cost information provided in managerial decision
making, types of management accounting methods that could be applied and how to record
income and expenses on the other hand.
1. Researcch methodology
Building on the grounds that "research that will endure the test of time requires an
optimal combination of research methods to achieve their objectives" (Cristea, 2007) I
classify this scientific approach in qualitative research category combining at the same
timequantitative elements:
Qualitative research include: analysis of the concept of public cultural institutions and
their role in society, presenting the objectives and organization of management
accounting and cost calculation, presentation and classification costing methods
identified as being applied in public culture, highlighting the role of management
accounting and cost calculation in the decision making process of public cultural
institutions.
Quantitative research include: case studies used to present the state funds allocated to
culture, analyze income and expenditure budgets, the empirical study on the
possibilities of development and implementation of management accounting in public
cultural institutions.
Research methods used in this scientific approach are: document analysis,
comparative method, participatory and non-participating observation and questionnaire
interview.
Research methods listed are a combination of the transverse and longitudinal methods,
which are used to build a descriptive research, basing on theoretical and conceptual aspects of
management accounting, cost accounting, cost calculation methods, the method of recovery of
information and their usefulness in decision making, to proceed to empirical research,
studying the behavior of cultural, national, through the implementation of management
accounting and cost calculation.
To conduct this research we used the following information sources: national and
international specialty books, specialty items recognized national or international laws,
regulations, national and international professional bodies, studies and research conducted by
various professional bodies.
Contributions of research
Haward and Sharp identify the following types of contributions that can be brought to
knowledge by studying literature fundamental type:
a) Review of existing knowledge;
b) Description of a situation or problem;
c) Construction of a new;
d) Explanation.
In this paper, following the typology above, I believe that I managed to grasp
as contributions :
Presentation and detailed development of concepts relating to culture, cultural
funding and the budget as the main financing instrument of public cultural
institutions;
Comparative analysis and presentation of expenditure on social-- cultural
activities ;
Presentation and detailed development of conceptual approaches on
management accounting and cost calculation, conceptual clarification on the
role, functions and usefulness of management accounting;
Develop detailed conceptual approaches on management accounting
developments in our country and globally;
Description of the current situation regarding the use of management
accounting and cost calculation in public cultural institutions;
Recommendation use of off-balance sheet accounts management accounting
to management accounting dissociated of these institutions;
Making a model application of management accounting and cost calculation in
public cultural institutions;
Empirical testing of hypotheses of present PhD thesis.
The study is characterized by:
Identify the ways of organizing and presenting management accounting and cost
calculation in public cultural institutions;
Identify why the studied organizations wishing to implement costing methods;
Identifying ways and forms of implementation of management accounting;
Presentation ways in which management accounting implementation would
improve management decisions;
Establish, on the basis of empirical correlations between different factors or
variables and the role they its have on the organization of management accounting
and cost calculation.
The main objectives of the study were conducted as follows:
I have identified the need, opportunity and the benefits management
accounting organization and cost calculation in cultural institutions in
Romania;
I identified the form that would be for implementing the management
accounting, management accounting methods and how to record income and
expenditure;
I developed a model for the implementation of ABC in public institutions and
culture and I have simulated the implementation of this model in a public
cultural institutions to examine the costs of different cultural services.
Empirical studies on the possibilities of implementation and improvement of management
accounting and cost calculation in public cultural institutions is a novelty and utility at the
same time. From the results I found the validation of assumptions.
Limits of research
A comprehensive research even well conducted can not ignore some inherent limitations as
is also the case for scientific research conducted in this work.
Following the survey I identified a number of shortcomings in the management accounting
system applicable to public cultural institutions:
lack of specific management accounting regulations for the public institutions ;
lack of managerial accounting professionals in public cultural institutions.
Further I suggest that such studies be pursued by research teams within larger research
projects, implementation of such a study requires a large amount of work. Also starting this
project should be led by an institution of research and collaboration with other research
centers or groups to achieve a high degree of utility.
Regarding the development of the questionnaire I focused on the most relevant issues without
going into details of the subjects studied because respondents must have available time to
respond.
Research perspectives
Considering the conclusions of this study finding solutions for organization management
accounting and cost calculation in public cultural institutions is is higly reccomended.
Taking into account the preference of most cultural institutions for ABC method, that type
of method of management accounting, and the advantages of this method were escribed in
Chapter 4, that model can be developed by institutions. It is a lot of work to understand the
usefulness of implementing ABC in public cultural institutions in Romania.
I recommend enlarging the sample public cultural institutions to carry out a study on
the need, opportunity of management accounting implementation in public
institutions, which would make it more relevant and objective for a survey.
I recommend to inform higher authorities to develop a standard reporting system using
ABC for public cultural institutions to analyze and track results, or to confirm or refute
the usefulness of this method so recognized and appreciated internationally.
I recommend carrying out investigations on preparedness, tasks and skills that
professional accountants practicing in the field of management accounting in
implementing and using modern management tools.
8. PhD thesis
List of abbreviations;
List of Figures;
List of Tables;
List of Annexes.
1.1. Economic aspects of the creation, production and distribution of cultural goods and services
1.1.1. Culture. Conceptual aspects
1.1.2. Specificity of cultural products
1.1.2.1. Characteristics of cultural property
1.1.2.2. Characteristics of cultural services
1.2. Boundaries, structures and references for public cultural institutions
1.2.1. General considerations on public institutions
1.2.2. Public cultural institutions
1.3. Objectives, main actions and funding of public cultural institutions
1.3.1. Budget revenues and expenditures in public cultural institutions - financing instrument
1.3.1.1. Budget - content and features
1.3.1.2. Budget process - principles
1.3.1.3. Aspects of public expenditure for culture
1.3.1.4. Funding sources of public cultural institutions
1.3.1.5. Financing of public cultural institutions
1.3.2. Building of revenue and expenses in public cultural institutions
1.3.3. Culture budget analysis and financial support to cultural institutions expenditure in Romania
1.4. Preliminary Conclusions
CHAPTER II
CHAPTER III
OPPORTUNITIES FOR IMPLEMENT MANAGEMENT ACCOUNTING AND COST
CALCULATION IN PUBLIC CULTURAL INSTITUTIONS
CHAPTER IV
4.1. Premises for organization management accounting and cost calculation using method ABC (Activity
Base Costing)for public cultural institutions
4.1.1. General characterization of the costing method on activities
4.1.2. The concept of processes and activities. Their implications in management accounting and
cost calculation
4.1.3. Inducers of costs. Their role in management accounting and cost calculation
4.1.3.1. Cost drivers (inductor)
4.1.3.2. Choice of cost drivers (inductor)
4.1.3.3. Grouping activities by choosing cost drivers
4.1.4. Calculating the cost of the product or service
4.2. Methodological study on the organization of management accounting and cost calculation in public
cultural institutions in Romania
4.2.1. Presentation of the proposed model for implementing ABC costing
4.2.2. Developing array of activities at the Museum of Natural Sciences Prahova County
4.2.2.1. Organizational schema
4.2.2.2. Team for the project
4.2.2.3. Reading of job descriptions
4.2.2.4. Distribution of staff by organizational structures
4.2.3. Presentation array of activities - Prahova County Museum of Natural Sciences
4.2.4. Introducing the matrix activity - Prahova County Museum of Natural Sciences
4.2.5. The proposed model for moving to cost-based grid activities in Prahova County Museum of
Natural Sciences
4.2.6. Analysis of wage costs - on activities carried out in Prahova County Museum of Natural
Sciences, matrix based on wage costs and department activities
4.2.7. Cultural products costing activities and calculation objects
4.3.Implementating and maintaining in operation of the management accounting system and costing ABC
4.4. Preliminary Conclusions
CHAPTER V
EMPIRICAL STUDY ON THE ORGANIZATION OF MANAGEMENT ACCOUNTING AND
COST CALCULATION IN PUBLIC CULTURAL INSTITUTIONS
CONCLUSIONS,
PERSONAL CONTRIBUTIONS,
FUTURE RESEARCH DIRECTIONS,
QUESTIONNAIRE,
BIBLIOGRAPHY,
ANNEXES