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The Importance of Management Control in Monitoring the Pharmaceutical Industry Performance for Competitive Advantage

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Author(s): Florinel Marian SGARDEA | Elena Monica SABĂU | Mihai VUŢĂ

Journal: Economia : Seria Management
ISSN 1454-0320

Volume: 14;
Issue: 2;
Start page: 465;
Date: 2011;
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Keywords: competitive advantage | management control | performance measurement | sustainability

ABSTRACT
Management control and thus managerial accounting will adapt to the requirements of market economy in terms of knowledge. Another thought other action. The sustainability of a business depends on how we use resources but also can correct measurement of performance of a project or activity. The distinction between ‘traditional’ and ‘innovative’ management accounting practices can be illustrated by reference to cost control techniques. Traditionally, management accountants’ principal technique was variance analysis, which is a systematic approach to the comparison of the actual (real costs) and budgeted costs of the raw materials and labor used during a production period. In this paper we wanted to show that the new management control procedures are part of knowledge management. Today is important for pharmaceutical companies to produce new products of advanced research results. This means that, for large companies, research expenditure budget is generous. More projects need to be monitored, evaluated and presented to the Board of Directors. What indicators will be kept for financial analysis? How prospective financial situation will look in five years? What will be the level of risk accepted by investors?

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