Cost Management Systems Research Articles

Quality cost management in the SMEs of Poland

PurposeThe purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the selected enterprises from small and medium-sized enterprises (SMEs) in Poland.Design/methodology/approachThe primary goal of the research is a need to acquire knowledge about the use of quality cost accounts in enterprises operating in Poland. The research has been conducted in the SMEs of production and services. From October 2018 to December 2018, survey-based research was carried out in the selected SMEs of production and service in Poland. The targeted participants of the study are from the medium-sized enterprises, employing 50–250 people.FindingsThe pilot studies conducted in companies indicate that modern enterprises are focused on quality. Many enterprises declare to be continuously improving quality system and quality costing. However, generally, these are large companies that have implemented ISO standards, often part of international corporations. The survey result of the study shows that medium-sized enterprises still make little use of modern cost accounting variants. Based on the study, only 9.75% (39 enterprises) from a representative group of 400 companies from the sectors of manufacturing, services and production as well as service companies apply quality costing. Some of the other enterprises are only taking measures to implement quality cost accounting.Research limitations/implicationsThe research has been conducted in randomly selected SMEs in the form of a questionnaire interview. In order to further analyze the construction of quality cost management (QCM) systems and the use of information from QCM by enterprises, case study method should be used more widely.Practical implicationsThe results of the study provide useful help for companies that are quality-oriented and want to implement quality costing. The survey has been conducted in 400 enterprises, and the survey results of considered SMEs reveal the most important aspects of the application of quality costing.Originality/valueThe questionnaire used, the answers provided and the resulting conclusions fill the identified research gap. In the author's opinion, findings of research are relevant and useful, not only for accounting practice but also for theory. They show that although TQM and quality costing have been very popular in the literature since the 1990s, the degree of application of quality costing in practice (except for large, often international companies) is too low. So, the suitability of QCM in managing a modern enterprise from the SMEs should be promoted.

Target Costing as a Strategic Cost Management Tool and a Survey on Its Implementation in the Turkish Furniture Industry

Purpose – Target Costing is implemented in product design and development phases, and hence aims at cost reduction at the first stage of the life-cycle. This method is primarily intended to enable enterprises to seize their desired profit margin on top of the product cost and determine a price that corresponds to what customers are willing to pay. This purpose of this study is to examine the target costing method and attempts to determine the extent to which it is implemented in the Turkish furniture industry. Design/methodology/approach – This study examines the extent to which target costing is implemented at the enterprises affiliated with the Turkish Furniture Industrialists’ Association and the competencies related with the implementation principles of target costing. It therefore determines the extent to which target costing is implemented in the Turkish furniture industry. The enterprises within this study are selected from furniture industry. So Turkish Furniture Industrialists’ Association is selected because of reflecting furniture companies the best. Findings – Majority of the enterprises implementing target costing stated it helped address customer requirements and reduce costs. They will be able to utilize the method as a significant tool for competitive advantage if they follow target costing principles more diligently. Enterprises not implementing it, on the other hand, are observed to be internally following the principles of the method in general terms. Its implementation will be successful if the senior management assumes an active role for its organization-wide ownership. Discussion – The findings obtained from the study are of great importance for the enterprises which want to calculate the unit costs related to the products correctly. But, majority of the enterprises in the furniture industry are observed to be employing traditional cost management systems in setting the selling price. Enterprises should leave traditional methods behind and opt for the methods of target costing including market research to provide products at the selling price that is desired by the customers.

APPLICATION OF TARGET COSTING METHOD IN HOSPITALITY INDUSTRY

With the development of technology, transportation possibilities have been diversified and the communication network has expanded considerably. Service companies that want to stand out in the global competition and provide better quality service have also had to change their production and sales policies. In hospitality indutry , which have an important place among service businesses, maintaining customer satisfaction and providing higher quality service has become one of the most important success factors. The sustainability of the services provided and the sustainability of customer satisfaction required cost management systems to be handled from a more modern perspective and supported the cost reduction efforts of the enterprises. In this section, the effect of target costing, which is one of the contemporary cost approaches, on the hotel companies and their effects on pricing policies are examined and practical issues are mentioned

ЭКОНОМИЧЕСКИЙ АСПЕКТ УПРАВЛЕНИЯ ЗАТРАТАМИ ХОЗЯЙСТВУЮЩИХ СУБЪЕКТОВ

The article highlights the issues of improving the enterprise cost management system in the current economic conditions. In this aspect, issues related to the problem of choosing a control method are considered; the advantages and disadvantages of traditional and innovative cost management systems are considered.

Costs of Enterprise: Opportunities of Management and Optimization Based on Functional Modeling and Prospects of Business Processes

Sustainable development of a domestic enterprise depends on the rational use of all types of resources, which necessitates the transition to an optimal cost management system. The urgency and significance of the cost management problem necessitates a thorough research and the determination of the optimal cost structure. The article proposes a modeling procedure for improvement of accounting and cost management. The article highlights the features of the management and cost optimization procedure based on functional modeling and re-designing of business processes in the context of the process approach chosen by the majority of enterprises. In order to improve cost management and the activity of the machine-building enterprise, the article proposed the use of the IDEF0 (Integration Definition for Function Modeling business process) modeling methodologies, which reflects the process approach to the formation and identification of business processes of the enterprise.The article proposes to apply a modeling and redesign process for business processes to find reserves for cost reduction and improvement of cost management system, and presents models of cost management and business processes of freight transport of a structural unit of a machine-building plant. To optimize the costs of the enterprise proposed the use of functional-cost analysis. The content is determined, application of modeling and redesign of business processes is grounded in order to find the reserves of cost reduction. The procedure of using modeling and re-designing of business processes at Ukrainian enterprises is determined. The practical significance of the results obtained is to improve the accounting and cost management systems, the results of which can be simulated, which will allow planning, forecasting and cost modeling across the entire business processes chain, developing measures for obtaining the desired results for individual operations and, in general, for functional activities, etc. Keywords costs, cost management, cost optimization, functional modeling, business process, modeling and re-designing of business processes.

Modern Maliyet Muhasebesinin Son Safhası: Kaynak Tüketim Muhasebesi Modeli

Geleneksel hacme dayalı maliyetleme modellerine göre teorik üstünlüğüne rağmen, Faaliyet Tabanlı Maliyetleme (ABC) modeli çoğu kurumda geleneksel hacme dayalı maliyetleme modellerinin yerini alamamıştır. Zaman Sürümlü Faaliyet Tabanlı Maliyetleme (TDABC) ve Kaynak Tüketim Muhasebesi (RCA) modelleri, Faaliyet Tabanlı Maliyetlemenin yetersizliklerine ve eksikliklerine çözüm getirmek amacıyla yeni nesil maliyet yönetim sistemleri olarak geliştirilmiştir. Kaynak Tüketim Muhasebesi, Alman Maliyet Muhasebesi (GPK) ve Faaliyet Tabanlı Maliyetleme (ABC) sistemlerinin bileşiminden oluşmaktadır. Bu çalışma, Kaynak Tüketim Muhasebesinin ortaya çıkışı, aşamaları, avantajları ve dezavantajları hakkında bilgi vermek ve geleneksel sistemler ile Zaman Sürümlü Faaliyet Tabanlı Maliyetleme sistemi ile karşılaştırılmasının gösterilmesi amacıyla yapılmıştır.

Evidências de isomorfismo na gestão de custos de entidades sem fins lucrativos do Brasil

Esta pesquisa objetivou analisar evidências de isomorfismo nos hábitos, rotinas e sistemas de custeio da gestão de custos das 100 melhores entidades sem fins lucrativos do Brasil em 2017, listadas pelo Instituto DOAR e pela Revista Época. O estudo caracteriza-se como exploratório-descritivo, de abordagem quantitativa. A coleta de dados deu-se mediante survey. Todas as 100 entidades foram contatadas e somente 30 destas responderam ao questionário. Analisou-se a relação entre as variáveis de agrupamento referentes ao perfil das entidades e dos respondentes, bem como as variáveis pertinentes aos sistemas de custeio dos hábitos e rotinas da gestão de custos e aos benefícios e dificuldades encontradas na gestão de custos, para encontrar evidências de isomorfismo. Os resultados do teste de correlação de Spearman, ao nível de confiança de 95%, apontam evidências de isomorfismo na gestão de custos das entidades analisadas.

Accounting, analysis and audit in management of economic security expenditures

Due to increasing globalization and competition, businesses have been forced to spend more time and money on taking measures aimed at economic security. Accounting, economic analysis, and audit play a significant role in the management of economic security expenditures since they make the management system more effective, reliable and sound. Therefore, this issue is currently of particular interest and needs to be interpreted. The purpose of the article is to examine the current state, challenges and future directions of improving accounting, economic analysis and audit in management of economic security expenditures. The methodology used for studying the issues relevant to economic security includes general and specific research methods enabling the description of economic processes, economic phenomena and facts, namely, those involving prime records, the registers of synthetic and analytical accounting, reports on economic security expenditures, carrying out analytical procedures, and auditing. The authors use monographic and graphic methods, methods of grouping and comparison of indicators, analysis of the dynamics and structure of expenditures, factor analysis, modelling and budgeting expenses on economic safety of enterprises, planning measures for the significant improvement of accounting, economic analysis and audit in enterprises. The authors claim that the term ‘accounting’ will exist until significant changes affect the objectives and contents of accounting. Although the Ukrainian word ‘бухгалтерський (book-keeping)’ is derived from the German word ‘Buch’ that means ‘book’, it is still in use today. In the era of technological development, outdated paper books (accounting information carriers) are being replaced by electronic books which have become widespread. The article offers to improve accounting policies and procedures relevant to measures aimed at economic security by separating information on synthetic account 92 “Administrative expenses” into nine sub-accounts: 921 “General corporate expenses”; 922 “Expenses on business trips and maintenance of management”; 923 “Expenses on non-current tangible assets for general economic purposes”; 924 “Remuneration for advisory, information, audit and other services”; 925 “Communication and Internet costs”; 926 “Litigation settlement costs”; 927 “Taxes, fees (obligatory payments, licenses)”; 928 “Payment for services provided by commercial banks”; 929 “General-purpose expenses”. The following analytical accounts of the second, lower order should be opened to analytical account 9291 “Expenses on the economic safety of the enterprise”: 92911 “Costs of internal security service”; 92912 “Costs of data and commercial secrets protection”; 92913 “Costs of receiving, storing and transmitting technical and economic information”; 92914 “Costs of recruiting staff specialized in economic security”. The authors believe that in order to cover expenses on maintaining economic security it is advisable to reserve sources of funds on synthetic account 47 “Provision of future costs and payments” by using sub-account 471 “Provision of other costs and payments” and analytical accounts to it: 4711 “Technical facilities for economic security”; 4712 “Use, maintenance and repair of facilities for maintaining economic security”; 4713 “Personnel support for economic security”. An audit of economic security expenditures is proposed to be carried out in relation to budgets for such expenditures, articles and elements, effectiveness and duration of economic security expenditures, etc. It is also necessary to analyze whether the dynamics and structure of costs are proportional to the budget for economic security of the enterprise. Furthermore, it is important to identify the main positive and negative factors that significantly affect such expenditures. Identifying factors like these allows experts to take certain measures that will partially or completely eliminate negative effects on economic security expenditures of the enterprise. Further research projects in accounting, economic analysis, audit, and analytical support for managing economic security expenditures of the enterprise should be based on the current national and foreign methodology and organization of accounting, economic analysis, and audit, analytical support of the operating activity of large and medium enterprises. Further studies should widely apply methods of operational and strategic planning, modelling cost-management systems, etc.

Composition, production rate and characterization of Greek dental solid waste

The overall objective of this work is to determine the composition, characterization and production rate of Greek dental solid waste (DSW). This information is important to design and cost management systems for DSW, for safety and health considerations and for assessing environmental impact. A total of 141 kg of DSW produced by a total of 2542 patients in 20 dental practices from Xanthi, Greece was collected, manually separated and weighed over a period of four working weeks. The waste was separated in 19 sub fractions, which were classified in 2 major categories, according to Greek regulations: Domestic-type waste comprising 8% and hazardous waste comprising 92% by weight of total DSW. The latter was further classified in infectious waste, toxic waste and mixed type waste (infectious and toxic together), accounting for 88.5%, 3.5% and 0.03% of total DSW by weight, respectively. The overall unit production rates (mean ± standard error of the mean) were 381 ± 15 g/practice/d and 53.3 ± 1.4 g/patient/d for total DSW, 337 ± 14 g/practice/d and 46.6 ± 1.2 g/patient/d for total infectious DSW, 13.4 ± 0.7 g/practice/d and 2.1 ± 0.1 g/patient/d for total toxic DSW and 30.4 ± 2.5 g/practice/d and 4.6 ± 0.4 g/patient/d for domestic-type waste. Daily DSW production was correlated with daily number of patients and regression correlations were produced. DSW was subject to laboratory characterization in terms of bulk density, calorific value, moisture, ash and volatile solids content. Measured calorific values were compared to predictions from empirical models.

Between cost and benefit: investigating effects of cost management control systems on cost efficiency and organisational performance

Although the importance of cost management for organisational performance is frequently stressed in the literature, attempts to develop an integrative framework for a cost management system remained on a conceptual level without empirical validation. Additionally, previous research on cost management systems fails to draw on findings from another, theoretically more pronounced stream, i.e. management control systems. To fill this gap, this paper develops a model for a cost management control system (CMCS) relying on both, cost management and management control systems literature. Based on a sample of 251 European companies, we investigate the impact of CMCS on cost efficiency and organisational performance using structural equation modelling. Our results indicate that CMCS increase organisational performance and that this effect is mediated by cost efficiency. For the relative importance of the individual components of CMCS we find statistical differences between the weights. Five elements are important for the establishment of a CMCS, but two groups can be separated. Creating a cost-conscious culture and the right set of CM-methods both have the highest impact on the formation of a CMCS. A moderation analysis further reveals that the effects of CMCS on organisational performance and cost efficiency are higher for radically than for incrementally innovative firms.

Shvatanja troškovnog ponašanja u industrijskim preduzećima s osvrtom na logistiku i njene troškove

Results are presented from quantitative research as part of a project on cost variability and cost management systems. The main objective was to analyze principal findings stemming from determining perception of cost behaviour in practice of industrial firms. Special attention was paid to selected cost groups, especially logistics costs. The main part presents results verified through statistical inspection of dependence relations. Key discoveries comprise significant drawbacks for manufacturing enterprises and reservations they hold about overhead cost management. Additionally, it was found that the share of overheads remained relatively high. Furthermore, confirmation was made on the close differences between company size and diligence paid to managing variable and fixed costs. It was also confirmed that senior executives were uninformed about asymmetric cost behaviours or the influence of factors beyond production capacity. Logistics costs were identified from the perspective of the cost behaviour problem. Crucial findings are discussed in the final part of the paper.

The Effects of Inter－organizational Cost Management and Inter－organizational Relationship Control Systems on Supply－chain Performance

The Effects of Inter－organizational Cost Management and Inter－organizational Relationship Control Systems on Supply－chain Performance

Sistemas de gestión de costos en las cooperativas de ahorro y crédito de Barranquilla

<p>El objetivo del presente artículo es la identificación de los sistemas de gestión de costos tradicionales utilizados en las cooperativas de ahorro y crédito de Barranquilla y sus diferentes problemas al momento de cimentar el proceso de toma de decisiones financieras por parte de los agentes encargados de hacerlo, que recurren a la metodología ABC como una opción eficiente para fundamentar este proceso en este tipo de organizaciones. Con esta finalidad, se estableció una investigación cuantitativa de alcance descriptivo, utilizando como instrumento de recolección de información primaria una encuesta tipo Likert, aplicada a las instituciones antes mencionadas, las cuales fueron seleccionadas mediante el muestreo probabilístico aleatorio simple. Los resultados demuestran que las cooperativas que ejecutan actividades financieras en Barranquilla suelen utilizar sistemas de costos tradicionales de bases históricas y estimadas que presentan un alto grado de dificultad al momento de cimentar la toma de decisiones, motivo por el cual los funcionarios encargados de procesar y revelar la información contable consideran que las técnicas y métodos característicos del sistema de costos ABC facilitan una adecuada asignación de los costos indirectos de fabricación, CIF, y consecuentemente propician un proceso de toma de decisiones con un alto grado de eficiencia.</p>

Methods and Tools to Reorganise the Governance in the Italian Healthcare Companies

This paper is a first analysis of the tools required to convert the fiscal data gathered from the management control systems into official guidelines for a long-lasting healthcare governance.This paper proposes some reflections about the peculiarity of the cost monitoring and management systems whose configuration and effectiveness must take into consideration the nature of the information requirement of the management processes addressee.The innovative aspect is to convey all the potential information contained in the cost monitoring systems. In fact, the information represents the subjective aspect, in other words what the reader ‘understands’ and perceives.These tools may not be analysed from a mere technical point of view, instead they must be considered as essential means to manage complex corporate systems.Using Amaduzzi’s theories and following an exploratory approach, this paper proposes some considerations about the tools required to convert the acts of management into (economic) values. Then, these values will convert into acts of management thanks to their capability to meet the information requirement of the governance stakeholders.The analysis carried out highlights the information requirement to satisfy through a series of monitoring and management tools, in order to find organisational and management solutions that are able to combine the need to rationalise the healthcare expenditure and to improve the quality and pertinence of health care services.

Is It Sufficient to Assess Cost Behavior Merely by Volume of Production? Cost behavior research results from Czech Republic

This paper presents results from quantitative research performed as part of a project on cost variability and cost management systems. The main goal was to analyze principal findings that arise through seeking to determine levels of cost management, as well as from comprehending various types of cost behavior affecting manufacturing enterprises in the Czech Republic.

Traditional and modern cost management systems: a scope and distinctive features

Traditional and modern cost management systems: a scope and distinctive features

Implementation Of Automated Systems For Target Cost Management And Assessing Performance: A Case Study In A Global Automobile Component Company

We examine the implementation of automated systems for target cost management and assessing firm performance in global automobile component company. After financial crisis, companies need to make strategic decisions as fast as possible. However, global companies are difficult to make fast decisions because of taking time for sorting the internal data through oversea companies. Also there are difficult to build systems of cost management and assessment of performance achievement. In this study, as we explain elaborately about the automatic process of cost management and assessment of performance achievement systems in global automobile component companies, we provide practical implications of this benchmark case for other companies’ automated target cost management systems and assessing performance system’s innovations.

Letter From the Editor

Letter From the Editor

Improved Cost Management at Small and Medium Sized Road Transport Companies: Case Hungary

Small and medium sized road freight transport companies located in Hungary are facing strong competition on the logistics market. An advanced cost management system supporting decisions on capacity allocations or pricing may be a competitive advantage for them and indirectly for the whole economy as well. Still, they generally apply simple, traditional cost calculation regimes, potentially sufficient in case of a homogeneous service portfolio. Nevertheless, road haulage companies with heterogeneous service structures may witness information distortions when using traditional costing methods. So it might be recommended for them to introduce better costing principles. To support an improved transport costing, a multi-level full cost allocation model has been set up and tested in this paper. The research results have pointed out that such a methodological development accompanied by the extension of the data collection mechanism can contribute to making the cost management systems of road freight transport companies more effective.

A cost management model for economic sustainability and continuos improvement of mining operations

The management of operating costs is essential to the efficiency and economic sustainability of mining operations and nevertheless, most cost management systems in the minerals industry are designed only and exclusively to meet financial accounting and reporting needs and lack of focus on decision taking and continuous improvement. This paper describes the result of a research program aiming to develop an innovative cost management methodology that applies Activity-Based Costing (ABC) and PDCA's Deming cycle tools to develop a cost management system for continuous improvement of operational efficiency and cost reduction. The implementation of this methodology in a mining operation would imply a breakthrough in the corporate approach to operations managements, from the conventional top-down approach to budgeting and control to a bottom-up integration of cost management and accountability. In this regard, the methodology was tested in the Andina underground mine III Panel sector of Corporation del Cobre (CODELCO), in Chile. The results of this test and its potential are also discussed.