Enterprise Cost Management Research Articles

Strategic Cost Control and Management in Corporations

In today's new situation and new state of affairs, the modernization of society with the gradual development of information technology, with people's consumption level, medical level of life gradually improve the pursuit of culture is more and more diversified, information is more and more prosperous. Various industries and fields have begun a new class of more intense competition, they are not limited to business competition, but need to go from the root of the reasonable integrated planning, in order to put more favorable funds into the follow-up input and important links, so in the current situation to form a good enterprise cost management control is critical to determine the development of the enterprise. This paper will discuss the importance of enterprise cost management control through the four different industries of enterprises according to their characteristics, and provide a certain exploration program, expound the relevant theories of enterprise cost management control, and combined with the status quo to give the basic measures.

Research on Logistics Cost Management Strategy for Wood Processing Industry Based on Environmentally Conscious Supply Chain

Introduction: The wood processing industry is an important component of the forestry industry; It is a green and low-carbon industry with low energy consumption and low environmental pollution. With the acceleration of global economic integration, logistics costs have become a key factor in improving the development level of wood processing enterprises and an important component of the competitiveness of the forestry industry. In response to the current problem of high logistics costs in Chinese wood processing enterprises, starting from the innovative concept of logistics cost management, a strategic management system for logistics costs is constructed using Environmentally Conscious Supply Chain, management theory; Strengthening the logistics cost management of wood processing enterprises in the forestry industry plays an important role in promoting China's transition from traditional quantity forestry to modern efficiency forestry. Objective: To improve the overall level of logistics cost management of the whole country's wood processing industry. Results and Discussion: Forestry is an integrated industry combining the economic value, ecological value and social value of forests. Due to the importance of t green coordinated and sustainable development of overall benefits in the forestry green supply chain, it is not only necessary to achieve economic benefits, but also to continuously increase resources and improve the ecological environment. Research Implications: This research can implemented in order to bring environmental sustainability

Management of Manufacturing Enterprises’ Overhead Expenses in the Conditions of Digitalisation in Penza Region

The article considers the problems and prospects for the functioning of business entities, the peculiarities of approaches to cost management in the course of the fourth industrial revolution.The Industry 4.0 concept implies the development of digitalization of business processes, automation and computerization of production, and intensification of R&D. However, the implementation of these tasks is hampered by the need for significant costs, the enormous deterioration of fixed assets, the difficulty of updating technological and software, and the lack of qualified specialists in the field of information and communication technologies. The aim of the study is to improve the efficiency of management of manufacturing enterprises’ overhead expenses of Penza region by finding a compromise between cost optimization and finding ways to develop and intensify innovation and digitalization. The empirical basis for this paper was drawn from research on enterprise cost management, outsourcing and digital business technologies, as reflected in the publications of the following databases: Scopus, ScienceDirect, Inderscience, Elsevier, open statistical data. The study uses bibliographic, statistical, expert, mathematical methods, abstract-logical methods, the method of analogy, induction, deduction, analysis and synthesis. It has been identified that the main obstacle to the manufacturing enterprise’s development is lack of funds, which can be overcome by an improved approach to the management of overhead expenses, which are often unreasonably high, and will continue to increase with the intensification of the digitalisation of the innovation activity. A distinctive feature of this study is the justification of outsourcing feasibility and proposal for its use as a tool for the development of manufacturing enterprises in the context of limited inner resources and a high degree of risk in development activities. The results of the study have been tested at machine-building plants of Penza region (Russia) and proved their effectiveness.

ФОРМУВАННЯ СИСТЕМИ УПРАВЛІННЯ ЛОГІСТИЧНИМИ ВИТРАТАМИ ТОРГОВЕЛЬНИХ ПІДПРИЄМСТВ

The article examines the problems of forming and improving the logistics cost management system of trade enterprises to increase their competitiveness in conditions of uncertainty. The interpretation of the concepts of "cost management" and "logistics cost management" in the works of domestic scientists during the last two decades was studied. The author's definition of the researched concept is proposed, namely "logistics cost management is a continuous process of purposeful formation of the optimal level of logistics costs of a trade enterprise, which involves their planning, accounting, control, analysis and management decision-making". The basic aspects of the formation of the logistics cost management system were studied: principles, tasks, concepts and methods of management. The main principles of logistics cost management of trade enterprises are determined, the observance of which will increase the efficiency of the logistics cost management system, namely: the principle of continuity, the principle of keeping separate records of logistics costs, the principle of flexibility, the principle of efficiency, the principle of identification of logistics costs, the principle of complexity, the principle of scientificity, the principle objectivity, the principle of efficiency, the principle of systematicity. Based on methodological principles and principles, the main tasks of managing logistics costs of trade enterprises were formed and the specifics of logistics processes and costs for their implementation were determined. In order to identify, record, control, analyze and evaluate the logistics costs of trade enterprises, it is proposed to classify them in order to improve the logistics activities of the enterprise and reflect them in accounting. It is substantiated that further scientific research on the improvement of the logistics cost management system should be aimed at developing a methodology for identifying reserves of resource savings by planning logistics costs, accounting, internal control and analysis by responsibility centers, stimulating resource conservation and reducing costs in order to increase the efficiency of the trading company.

Research on the Optimization of Enterprise Resource Economic Benefits and Management Costs in Cloud Computing Environment

Abstract Based on cloud computing technology, this paper constructs a benefit-optimal enterprise resource scheduling model and an enterprise cost management prediction model to maximize the economic benefits of enterprise resources and optimize the management costs, respectively. Combining the improved greedy algorithm and the benefit function, a cloud resource scheduling algorithm based on benefit optimization is proposed, defining the benefit function about time and cost, and taking the highest user satisfaction as the optimal resource scheduling objective. A mathematical model for management cost prediction is constructed by using the fireworks algorithm to optimize the number of trees and the number of leaf nodes in the random forest, and the Informatica software is used to manage and integrate the enterprise source data. The performance of the company’s operating conditions after optimizing resource management and cost savings is explored as a case study of Company S. In 2023, the total asset turnover ratio of Company S increased to 21.45 from 0.48 in 2022, and the overall asset operating efficiency improved. Working capital rose to 262,852,200 yuan. The current ratio, quick ratio, and cash ratio improved, while the gearing ratio, equity ratio, and equity multiplier showed a downward trend. The net operating margin achieved the maximum profitability in the last three years, net total assets margin, and net equity margin, with an increase of 25.42%, 20.65%, and 31.49%, respectively.

Cost Management and Risk Control of Construction Projects under the Market Economy

With the continuous development of construction enterprises, the cost management of engineering projects has received more attention as a factor that directly affects the profits of enterprises. Under the deployment of the market economy, which is closely related to it, the construction cost often presents a certain degree of uncertainty.In the face of this uncertainty, properly managing risks and optimizing cost management strategies have become an effective way to maximize the benefits of construction companies. Starting from the problems existing in the cost management of construction enterprises, this paper puts forward some suggestions for their risk control and cost management.

Research on Cost Management of Logistics Enterprises Under the Between Big Data, Intelligence, Mobile Internet and Cloud Computing

In 2013, the concept of "Great wisdom moving Cloud" was first proposed at the China Internet Conference. Under the national technology innovation strategy, Dazhiyun has gradually become a powerful technology engine for economic development and enterprise transformation and upgrading. With the advent of the era of "big wisdom moving cloud", the traditional enterprise cost management has been unable to meet the current financial management requirements, how to form a cost leading advantage has become the core task of cost management. Big data, artificial intelligence, cloud computing, Internet of Things and other related technologies provide technical support for enterprise cost management innovation. However, under the background of "big wisdom moving to cloud", there are still many shortcomings in enterprise cost control, such as backward cost management concept, backward related supporting system, lack of professional talent quality, data collection distortion, etc. Enterprises should take the initiative to introduce information technology. To develop in the direction of technological innovation and management innovation, reduce costs and increase efficiency.

Enterprise value management: directions, key factors and growth tools

Methods. The theoretical and methodological basis of scientific research was the work of scientists on the assessment and management of enterprise value. The main results are obtained through the use of general scientific and special methods, namely: theoretical generalization – during the study of the enterprise cost management process; analysis and synthesis – to substantiate the company’s cost management directions; a systematic approach – in the formation of key factors contributing to the increase in value and determining the tools that can be used to achieve this goal. Results. The results of the study shed light on issues related to the areas of enterprise cost management. The application of various approaches, namely: financial, economic and strategic approaches to determining the value of the enterprise by scientists is revealed. The main factors that affect the increase in the value of the enterprise are highlighted: increasing profitability, optimizing the capital structure and increasing the efficiency of operations. Novelty. The study points to the importance of combining different business valuation methods to obtain more accurate and comprehensive results. This allows better understanding of the current state of the enterprise and developing more effective cost management strategies. It has been proven that cost management becomes a tool that helps enterprises to effectively respond to changes in the international business environment and use new opportunities for development. Practical value. The results of the research can be useful for business entities and investors. They can use the recommendations and tools provided in the article to improve the cost management of their enterprises, increase their competitiveness and attractiveness to potential investors.

Enterprise Costs: Essence and Management Features in Modern Conditions

Purpose: The objective of the article is the study of theoretical provisions and the development of practical recommendations for improving the company's cost management methodology. Design / Methodology / Approach: The following methods were used in the research process: methods of induction and deduction, the method of comparison, the method of generalization – to reveal and clarify the economic essence of costs; system approach – to build a system of cost management of the enterprise; statistical research methods – to assess the structure and dynamics of enterprise costs; graphic – for a visual presentation of research results. Findings: The article examines the economic essence of enterprise costs through the prism of national and international accounting standards. The composition and structure of the company's costs were diagnosed and the factors that influenced their change were analyzed. The theoretical and methodological aspects of enterprise cost management are justified. Originality / Value: The scientific novelty of the obtained results lies in the identification and disclosure of directions for improving the company’s cost management methodology. It has been proven that cost management of an enterprise is a complex and dynamic process that involves achieving a high economic result of its operation. Practical Meaning: The practical significance lies in certain places and the role of costs in achieving production efficiency. It has been established that in order to form an effective cost management system for an enterprise, it is necessary to develop a management strategy, record and analyze costs in terms of their volume, dynamics, structure and responsibility centers, as well as identify trends in the level, volume and structure of costs per unit of output. Further Research: For the correct choice of the cost optimization method, it is necessary to take into account external and internal factors, the determination and assessment of the impact of which on the company’s costs are areas of further research.

Analysis of Enterprise Cost Management from the Perspective of Management Economics

In view of economic globalization, China’s economy has entered a stage of normalized development. In the post pandemic era, the costs of raw materials, production, sales, and labor in Chinese enterprises continue to increase, leading to severe competitive pressure among the enterprises. Therefore, it is of great theoretical and practical significance to actively apply the relevant theories of management economics to guide the cost management of Chinese enterprises, improve their economic benefits, and promote healthy and sustainable development. Currently, there are still many problems in terms of cost management in Chinese enterprises. Therefore, it is crucial to address these problems and further improve the effectiveness of cost management. This paper presents an overview of cost management and an analysis of the specific problems and provide corresponding countermeasures, in hopes of to providing a reference for cost management in enterprises and achieve the goal of stable and sustainable development of China’s economy.

SCIENTIFIC APPROACHES TO THE SYSTEMATIZATION OF COST-GENERATING FACTORS IN THE COORDINATES OF ACHIEVING STRATEGIC AND TACTICAL GOALS BY AN ENTERPRISE

The article presents the results of the study of factors affecting the costs of an enterprise. The main goal of the study is an analysis of cost-generating factors and their systematization to improve the efficiency of enterprise cost management at the tactical and strategic levels.The relevance of the scientific problem is in the fact that a systematization of cost-forming factors depending on the strategic goal and tactical goals of an enterprise will contribute to increasing the level of efficiency of a cost management system. This affects not only the increase in profitability of an enterprise but also its successful development by increasing the level of competitiveness of the enterprise's products on principles of cost optimization.The study of literary sources and scientific approaches to the systematization of cost-forming factors made it possible to assert that this issue remains unresolved in full and requires research. Thus, cost-forming factors have varied classifications: structural and functional; production and non-production; national, sectoral and internal production; foreign economic, inter-branch and domestic, etc.The results of the analysis of scientific approaches to the definition of cost-forming factors made it possible to provide the definition of cost-forming factors as such conditions of the internal and external environment, because of which a level, volume, structure and dynamics of enterprise costs change.The classification of factors influencing the formation of enterprise costs is proposed, taking into account the state of the internal and external environment. The factors of the internal and external environment are proposed to be grouped according to the following characteristics: the possibility of their influence on costs, with the identification of groups of factors of a direct and an indirect influence; depending on a level of management with a selection of groups of strategic and tactical level factors. In addition, for the strategic level of cost management, it is proposed to single out the following groups of factors: economic, market, tax, financial, systemic.The results of the study may be of practical importance to may have applied value for heads of manufacturing enterprises in terms of cost management in relation to a company's achievement of strategic and tactical goals.

Perspectives of process-oriented approach development in cost management under digitalization conditions

The development of a process approach to cost management in a digital environment has great prospects. Firstly, the use of digital technologies allows for greater accuracy in cost accounting, which is particularly important for enterprises with large production volumes and numerous processes. Secondly, digitization enables the automation of many processes and reduces the human factor in cost management. Thirdly, digital technologies enable faster and more efficient data analysis and decisionmaking based on this data. One promising direction for the development of a process approach to cost management in enterprises is the use of blockchain technologies. Blockchain can provide transparency and security in storing and transmitting information about cost accounting between enterprises and their partners. This can be particularly important in areas where it is important to accurately track the origin and distribution of costs, such as in agriculture or food production. It is also worth noting that the development and use of artificial intelligence and machine learning can improve cost management processes and allow for faster and more accurate data analysis and decision-making. Overall, the development of a process approach to cost management in enterprises in a digital environment will continue, and its successful implementation will enable enterprises to optimize their costs, increase efficiency, and competitiveness in the market.

Моделювання системи управління витратами на підприємстві: теоретико-методичний аспект

The article is aimed at substantiating the theoretical and methodological foundations of modeling the enterprise cost management system and determining the effect of its practical introduction. Based on the analysis of literary sources, semantic signs of costs have been allocated. It is determined that, in accordance with the system approach, costs are the object of management and a component of the general information and analytical system, further on, costs are subject to identification, analysis, evaluation, optimization in order to find reserves for the growth of profitability indicators of enterprise while observing the reduction in the level of cost of output, other things being equal. The article substantiates, examines and specifies the methodical bases of modeling the cost management system of the enterprise, consisting of the following mandatory elements: the subject and object of cost management of the enterprise; managerial-functional and economic-functional subsystem of enterprise cost management; organizational and economic mechanism; external and internal environment of the enterprise, and feedback information. The practical necessity of classification of costs in order to specify the object of management, according to organizational-managerial, financial-economic and accounting-analytical criteria respectively, is proved. Methods of enterprise cost management are systematized and their non-universality in practical application is noted. The management measures to reduce the costs of enterprise depending on the complexity of their implementation are presented. The article substantiates the effect of introduction of cost management system in enterprise activity as follows: improving the efficiency of cost management on the basis of timely assessment of changes in the cost of production; control of the level of costs in accordance with the norms of consumption by responsibility centers; obtaining reliable, relevant and economically feasible information on cost reduction reserves; correlation and assessment of the impact of costs on indicators of the financial condition of the enterprise and the profitability of its activities as a whole. The authors see further scientific research directions in substantiating the features of the practical application of the enterprise cost management system depending on the industry affiliation and the structure of production of the enterprise, taking into account the ISO 9001 standards.

Cost management system agricultural enterprises: basics of development and directions of improvement

The article provides a generalization of the foundations of formation and identification of directions for solving the problems of cost management in modern enterprises of the agrarian sector. It is argued that there is an urgent need for domestic agricultural enterprises to modernize their management systems, particularly in terms of costs. The state and risks of the development of domestic agro-industrial enterprises under martial law are characterized. The losses of Ukrainian agricultural enterprises during the period of military aggression of the Russian Federation were revealed using the data of published analytical studies. It has been proven that under the conditions of unpredictable changes in the economic environment, the critical factor for the success of domestic agricultural enterprises is the control and optimization of costs. The essence and basic foundations of the cost management of the enterprise are defined, the components are revealed and the features of the cost management system are outlined, with the management-functional and economic-functional subsystems being highlighted.

Strategic management of enterprise value in the conditions of innovative development

Methods. When conducting a study of strategic enterprise cost management under innovative development, the method of scientific abstraction was used – in determining theoretical and methodological approaches regarding the essence of the concept of «enterprise cost management»; system approach – in the formation of a methodical approach to comprehensive assessment of the effectiveness of enterprise cost management. Results. It has been demonstrated that the new management paradigm, which is based on a strategic approach, has led to a change in the goals and criteria of the company's activity, namely: the criteria for the success of the its activity and the basis for determining its mission are the cost, which allows for a quantitative assessment of both strategic goals and the level of their implementation. It was found that despite the presence of a wide arsenal of methods for estimating the value of an enterprise, none of them take into account its specificity, as well as the factors that shape the value. Work was carried out on the formation of an applied methodical approach to strategic management of enterprise value. Novelty. A methodical approach to strategic management of enterprise value is proposed, which is based on a comprehensive approach to estimating its value and is characterized by ease of application. The developed approach is universal for any enterprise and ensures consistency in the implementation of principles and methods. It takes into account all stages of strategic management of the enterprise's value, as well as other criteria, in particular, the volume of production, profit. Practical value. The obtained results of the scientific research proved the need to develop a comprehensive assessment of the value of the enterprise under innovative strategic management in order to diagnose the state, trends and determine the factors that contribute to the growth of its value and potential. Since the main component of the increase in the value of equity capital is the steady rate of growth of profitability and the amount of cash flow, the main attention is focused on indicators of profitability. Accordingly, the cost is a key point of the strategic management system of the enterprise and is used both for the formation of its specific goals and objectives, and serves as a criterion for evaluating the success of strategy implementation.

The construction project is the main subject of management

In the article, based on the analysis of literary sources, the concept of "construction organization" is defined, the logistical methods of choosing a place for the construction of a warehouse are considered, and their role in achieving strategic and current management tasks, optimizing production activities, as well as ensuring the effectiveness of cost management of enterprises is determined. Based on the results of the analysis of scientific works, it was concluded that the introduction of a value-oriented approach to the formation of project content and the use of work decomposition for construction projects is urgent and requires clarification and research.
 An improved approach to managing the content of construction projects is proposed, which integrates the value components of the requirements and needs of stakeholders, which are presented in the form of a work decomposition structure. Implementation of these processes will allow the project manager and his team to take informed and controlled risk on project execution in order to create value that integrates the values of stakeholders. Meeting the goals of owners and users is fundamental to creating value through the project. In order to effectively create the value of a construction project, the value of users must be aligned with the owner's strategies, embedded in the content of the project and controlled throughout the entire life cycle of the project and its product. 
 The project manager must be clearly aware of the consequences of not taking into account or ignoring the values of stakeholders, and how to improve or support the value attitudes of stakeholders for effective management of a construction project. It was concluded that the value-oriented management of the content of the construction project can become the basis for a new component of the methodology of project content management, which will allow to include in the content recommendations and relevant documents that regulate the values of stakeholders, and also allow monitoring at all stages of the project life cycle and control of both values and content components.

Method for Controlling Economic Management Cost in Enterprises Based on Coase Theorem

In today’s integrated economy, no country’s economic development can be outside the international economic environment. After continuous and rapid development, China’s economy has surpassed Japan’s overall economic level and has become the second largest economic power in the world. But with the advent of the new normal economy in China, the economy has entered a stage of medium- and high-speed development, and business management and cost management of enterprises are also facing the transformation of strategies and systems. Every enterprise and company is trying its best to improve its own cost management system, business model, and cost management strategy. The development of science and technology and the advent of the era of information technology have gradually brought China’s economic development into a green development track, which has put forward greater research topics for enterprise cost management. Therefore, the method for controlling economic management cost in enterprises based on the Coase theorem was proposed.

The Experience of European Countries in Managing the Expenditures of Enterprises in the Agricultural Sector

Ensuring the efficient development and functioning of agricultural enterprises depends on the rationally formed optimal level of costs for the implementation of economic activities, particularly for the production of agricultural products. This article aims to describe methodological principles of cost management of agricultural enterprises based on the European Union countries using determination of interconnection between total costs of agricultural enterprises and indicators of the value of agricultural products manufactured by them. Methods: theoretical analysis, abstraction, induction, deduction, tabular and graphical presentation, description, comparison, comparison, and generalization. Results: It was found that the disclosure of methodological principles of cost management of agricultural enterprises should be carried out by identifying the relationship between the total costs of agrarian enterprises and indicators of the cost of agricultural products produced by them using correlation analysis. As a result of correlation analysis, we established direct and reversed very high, high, medium, moderate, and weak correlations between the indicator of total costs of agricultural enterprises and the indicator of the cost of grain growing, index of production cost of industrial crops and the index of the cost of forage crops production according to the surveyed countries of the European Union. It was found that with very high and high intensity of interconnection between the analyzed variables. The increase in the indicator of total costs directly affects the growth of the cost of growing crops by agricultural enterprises in Austria, Belgium, Bulgaria, Croatia, Cyprus, Estonia, Latvia, the Netherlands, and Romania. The growth in the indicator of total costs directly affects the growth of the production cost of industrial crops by agricultural enterprises of Denmark, Estonia, Greece, Latvia, and Portugal and the increase in the indicator of total costs directly affects the increase in the cost of growing forage crops by agricultural enterprises of Belgium, Croatia, Cyprus, Estonia, Ireland, the Netherlands, Romania, Slovenia, Spain, and Sweden. The prospect of the following research is to disclose the methodological principles of cost management of agricultural enterprises on the application of the United States of America.

Performance Incentive and Enterprise Cost Management

Cost management is an important part of enterprise financial work. Active cost management can effectively reduce costs and lay the foundation for the long-term development of enterprises. When analyzing the cost management of enterprises, this paper understands the current situation of enterprise cost management and the problems existing in cost management by consulting literature and enterprise financial reports, and finally chooses to effectively combine the two from the perspective of performance incentive, combined with the current situation of enterprise cost management, hoping to strengthen the cost management of enterprises and effectively reduce the cost of enterprises, And provide accurate financial information for the decision-making of the enterprise management, and promote the long-term development strategy of the enterprise.

Construction and Analysis of Performance Evaluation Index System for Chinese Small and Medium-Sized Enterprises Based on Fuzzy Hierarchical Analysis Model.

It is of great theoretical and practical significance to introduce the supply chain concept into micro and small manufacturing enterprises and to build a cost management evaluation model for micro and small manufacturing enterprises based on the supply chain to improve the cost management of micro and small manufacturing enterprises. To this end, based on combing the relevant literature on supply chain and cost management evaluation at home and abroad, this paper analyzes the characteristics of cost management of micro and small manufacturing enterprises because of the problems of cost management of micro and small manufacturing enterprises, adopts the gray fuzzy hierarchical analysis method to assign and evaluate, which takes into account the nonindependence among the elements of each level and the elements of the same level, and also considers the characteristics of grayness and fuzziness of qualitative indicators so that the evaluation results are more credible. The evaluation of cost management of micro and small manufacturing enterprises based on the supply chain was carried out by using gray fuzzy analysis, and the empirical analysis was based on the research data of company B. The evaluation result was “poor,” which verified the applicability of the cost management performance evaluation model of micro and small manufacturing enterprises and indicated the direction for the improvement of cost management of micro and small manufacturing enterprises. And, the proposed intuitionistic fuzzy hierarchical analysis has greater advantages in evaluation accuracy than the traditional fuzzy hierarchical analysis.