The basics of the process approach to cost management in industrial enterprises

Naugolnova I.A.¹
¹ Самарский государственный экономический университет, Russia

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Journal paper

Journal of Economics, Entrepreneurship and Law ^{(РИНЦ, ВАК)}
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Volume 10, Number 3 (March 2020)

Citation:

Indexed in Russian Science Citation Index: https://elibrary.ru/item.asp?id=42754506
Cited: 15 by 30.01.2024

Abstract:
The study is due to the high level of costs for the ruble of commercial products of domestic industrial enterprises. The cost of a product is one of the fundamental factors of competitiveness. A competent cost management system at the enterprise allows to significantly optimize the size and structure of the company's expenses, increase their competitiveness both in the domestic and foreign markets. The process approach to cost management, based on the value chain, allows to eliminate inefficient processes and unnecessary functions in the production and sale of goods, correctly distribute overhead costs per unit of production, thereby justifying its cost. The article shows the key difference between the traditional and process approach to the distribution of costs per unit of production. An algorithm for implementing a process approach to cost management in industrial enterprises based on the analysis of the value chain is proposed. Modern methods and graphical notations are used to highlight and depict processes occurring in industrial enterprises. The rules for describing processes are outlined in order to correctly allocate product costs.

Keywords: cost control, process approach, allocation of processes, value chain

JEL-classification: D24, M11, M21

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