Topical questions of organizing an effective cost management system in a competitive environment

Aim. To substantiate the necessity of building a cost management system in a competitive environment and to identify the key issues that ensure its effective functioning.

Tasks. To set out the basic approaches to the concept of “cost management system”, to study the essence of the system through its elements and establish the relationship between them; to determine which methods of the system are most preferable for the successful performance of each function; to formulate recommendations for effective organization of the cost management system in modern conditions.

Methods. In the process of research general scientific methods are used; generalization of the results is carried out at the expense of the tabular and graphic form of presentation; four groups of methods of the account of expenses and management of their level - traditional and modern, methods of strategic management of expenses and methods of the concept of economical manufacture are allocated. In each group examples of methods are resulted, their brief characteristic is given.

Results. The key measures within the system of costs management, the successful implementation of which is ensured by performing the functions of the system, have been shown; the contents of the functions has been revealed, as well as the relationship between them has been established; the possibility of effective use of the methods within each function of the system has been determined. It was revealed that the inefficient performance of one function has a negative impact on the performance of other functions. To eliminate this limitation, it has been suggested to allocate financial responsibility centers that act as a key tool to motivate employees to build an effective cost management system and achieve target performance indicators.

Conclusions. The system of cost management serves as a component of the management system of the organization as a whole, is inseparably connected with accounting and is directed to optimization of the total cost level at simultaneous increase of efficiency of financial and economic activity. The system approach to cost management is characterized by the possibility of using various tools and methods of costing, cost accounting and management of their level. Inconsistent application of methods and tools with the system functions, as well as with its goals and objectives indicates the poor quality of the organization of cost management, which affects the management system as a whole.

1. Suloeva S.B., Gultceva O.B. The system of cost management: Conceptual provisions. Organizator proizvodstva = Organizer of Production. 2017;25(3):47-58. (In Russ.). DOI: 10.25065/1810-4894-2017-25-3-47-58

2. Karpova T.P. Management accounting. 2nd ed. Moscow: Yuniti-Dana; 2004. 351 p. (In Russ.).

3. Cooper R., Kaplan R.S. Design of cost management system. Englewood Cliffs, NJ: Prentice- Hall; 1999. 536 p.

4. Bagiev G.L., Asaul A.N. Organization of entrepreneurial activity. St. Petersburg: St. Petersburg State University of Economics and Finance; 2001. 231 p. (In Russ.).

5. Mikhaylova N.S., Mikhaylov A.A. System of cost management as an innovative factor of enterprise competitiveness upgrading. Vestnik Samarskogo gosudarstvennogo ekonomicheskogo universiteta = Vestnik of Samara State University of Economics. 2013;(1):69-71. (In Russ.).

6. Voronova E.Yu. Management accounting: A rational approach. Auditorskie vedomosti = Audit Journal. 2010;(12):78-85. (In Russ.).

7. Nemchenko A.V. Formation of a cost management system at the enterprise. Vestnik Altaiskogo gosudarstvennogo agrarnogo universiteta = Bulletin of Altai State Agricultural University. 2009;(8):109-112. (In Russ.).

8. Vekshina A.A. Lean manufacturing as a way to optimize costs: Principles, tools, and implementation practices. Mezhdunarodnyi bukhgalterskii uchet = International Accounting. 2021;24(11):1243-1261. (In Russ.). DOI: 10.24891/ia.24.11.1243

9. Kleiman A.V., Chernyavskaya N.V. Problems of cost management of industrial enterprises. Natsional’nye interesy: prioritety i bezopasnost’ = National Interests: Priorities and Security. 2015;11(3):50-63. (In Russ.).

10. Mironov S.V., Logantsova N.V. Organization of management through financial responsibility centers. Vestnik Natsional’nogo instituta biznesa = Bulletin of the National Institute of Business. 2017;(28):330-333. (In Russ.).

11. Shalaeva L.V. Financial responsibility centers in the strategic management accounting system. Mezhdunarodnyi bukhgalterskii uchet = International Accounting. 2018;21(2):159-172. (In Russ.). DOI: 10.24891/ia.21.2.159

12. Kerimov V.E. Cost accounting, calculation and budgeting in certain sectors of the manufacturing sector. Moscow: Dashkov and Co.; 2020. 384 p. (In Russ.).

13. Adamova G.A. Actual problems of accounting organization on the financial responsibility centers. Vestnik universiteta (Gosudarstvennyi universitet upravleniya). 2019;(5):116-120. (In Russ.). DOI: 10.26425/1816-4277-2019-5-116-120

14. Balbarin Ya.D., Zambrzhitskaya E.S. To the issue of the concept of “cost management system”. Ekonomika i upravlenie v XXI veke: tendentsii razvitiya. 2014;(14):90-98. (In Russ.).

15. Voronova E.Yu., Vekshina A.A. On the transformation of the cost accounting system in the digital environment. Obshchestvo: politika, ekonomika, pravo = Society: Politics, Economics, Law. 2023;(1):39-43. (In Russ.). DOI: 10.24158/pep.2023.1.5