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Books and balance accounts are a conscience of business. It as well a compass
Book keeping and reporting receptions are so habitual for the businessman,
That he also does not notice, what it is amazing tools. The genius was necessary
The great poet and the prose writer to appreciate them. Goethe
Named double-entry bookkeeping "one of the most brilliant inventions human
Mind ". With its help, he has noticed, the businessman can at any time in general
To survey whole and should not puzzle thus over details .
The characteristic given by Goethe, has reflected the most important thing. Advantage
Commercial management consists that it gives in the order
The managing director a method of supervision for whole and all its parts, not forcing
It to be loaded in a trifle and a detail.
The businessman has possibility to allocate the accounts concerning each
Component of the business in such a manner that it will allow it to define
Role which she plays in all enterprise. For general public each firm
Or the corporation is represented an integrated whole. But from the point of view of it
The managing director it consists of several divisions, each of which
It is considered as separate unit and the success is evaluated on a dale of its investment in
All enterprise. Within the limits of system of commercial accounts each division
Represents a certain integral organism, so to say, hypothetically
Independent business. It is supposed that this division is
"Proprietor" of a certain part of all capital used by the enterprise,
That it purchases from other divisions and sells them that it has the
Own costs and incomes that its operations bring profits or losses,
Which are defined by management its own affairs considered separately from
The results reached by other divisions. Thus, main
The managing director can grant administrative personnel of each of
Divisions a significant share of independence. It is not necessary for the general manager
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