Cost Management Process Research Articles

Effective Application of Whole Process Cost Management in Civil Engineering

Effective Application of Whole Process Cost Management in Civil Engineering

Practical tools of an integrated construction cost management system

Introduction. The problem of effective construction cost management can arise at any stage of a construction project, and it becomes particularly relevant amid economic instability. Solving problems of accurate assessment and control of construction costs is vital for all participants in the investment and construction process. The construction cost management process encompasses the following interrelated sub-processes: identification of reliable construction costs at stages of preliminary and working design; construction cost control at further stages, including the drafting of working design documentation and facility construction. The subject of research is a set of practical tools that solve construction cost management problems throughout the lifecycle of a construction facility.
 Materials and methods. Data on cost analysis processes, methods and tools were collected, systematized and analyzed in the course of the study. A systematic approach, analysis and synthesis methods, expert and comparative assessment methods were applied.
 Results. The main principles, underlying the author’s approach, as well as a set of practical tools designed to manage the cost of construction of a capital construction facility were proposed in reliance on the analysis, conducted by the author.
 Conclusions. The author proposes construction cost management methods and practical tools that can be applied in the course of implementation of investment and construction projects that have different degrees of complexity.
 KEYWORDS: planning, management, pricing in construction, construction cost, design documentation, working design, construction

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Abstract. Introduction. The main factor in ensuring the competitive advantages of the effective functioning of any enterprise, its stable economic development, is the improvement of the efficiency and optimization of the enterprise's costs. Therefore, in order to achieve a high economic and financial result of activity, enterprises of various industries and spheres of operation need effective cost management. Cost management is aimed at the constant search and identification of resource saving reserves, stimulation of resource conservation and cost reduction in order to obtain the effect of commercial calculation based on the results of the enterprise's activities. Purpose. Research of scientific approaches of various scientists to the definition of the concept of �cost management�, determination of cost management functions and systematization of cost management principles at the enterprise. Results. Substantiates the author's position regarding the essence of this concept of �cost management�, which should be considered as an integral system of organizational and functional support and a methodological toolkit of influencing the process of spending, which includes managerial actions , the purpose of which is for the enterprise to obtain a high positive financial result of its activity. It was determined, that cost management at the enterprise involves the performance of general functions inherent in the management of any object and specific functions. It is justified, that consideration of the principles of cost management should be carried out through a thorough coverage of their substantive basis with the disclosure of the opportunities that the enterprise receives in cost management, subject to compliance with one or another principle. The main principles of cost management of the enterprise are summarized, which include the following principles: system-complex approach to cost management; intersubject feedback; resource reservation; continuity of cost management for the production and sale of a specific product; economic validity and reliability of information about costs; the adequacy of the results of management actions regarding costs; independence. Conclusions. The author's position on the essence of cost management is outlined in the article, the general and specific functions of cost management are detailed, and the principles of the cost management process at the enterprise are detailed. It is ensuring maximum compliance of the specified principles at the enterprise that enables the effectiveness of cost management, which is part of the general management system of the enterprise and reflects the efficiency of economic activity.

Exploring the Application of BIM Technology in the Whole Process of Construction Cost Management with Computational Intelligence.

The construction industry is a labor-intensive industry in China. In recent years, as people's living standards have risen, so have their requirements for the functionality, appearance, and comfort of buildings. The amount of information attached to construction projects is also increasing, especially for some modern large-scale construction projects. Due to the long construction period and a large amount of information in the construction process, the difficulty of project engineering management has also increased significantly. At the same time, with the gradual development and improvement of China's market economy system, the prices of labor and materials in the construction industry continue to rise, and the huge consumption of energy and resources no longer meets the strategic requirements of sustainable development. Therefore, construction project cost management is facing a huge impact, the actual effect of construction project cost management work is not good, and the phenomenon of uncontrolled construction project investment commonly occurs. The use of BIM software to build a building information model can integrate information from all stages of the project and facilitate the participation and cooperation of all project entities. Cost management is carried out before the actual construction of the project, thus realizing the whole process of cost management and effectively avoiding the occurrence of actual costs exceeding the budget after the project is completed. The study analyses the suitability of applying BIM technology to the whole process of construction project cost management with computational intelligence and explains the value and advantages of BIM in the whole process of construction project cost management. On this basis, this research provides a specific analysis of the application of BIM technology in the process of cost management at various stages of the whole process of construction projects and thus puts forward suggestions that can solve the obstacles that may be encountered in the whole process of cost management of construction projects in China.

Теоретичний базис управління витратами підприємства

Abstract. Introduction. The main factor in ensuring the competitive advantages of the effective functioning of any enterprise, its stable economic development, is the improvement of the efficiency and optimization of the enterprise's costs. Therefore, in order to achieve a high economic and financial result of activity, enterprises of various industries and spheres of operation need effective cost management. Cost management is aimed at the constant search and identification of resource saving reserves, stimulation of resource conservation and cost reduction in order to obtain the effect of commercial calculation based on the results of the enterprise's activities. Purpose. Research of scientific approaches of various scientists to the definition of the concept of «cost management», determination of cost management functions and systematization of cost management principles at the enterprise. Results. Substantiates the author's position regarding the essence of this concept of «cost management», which should be considered as an integral system of organizational and functional support and a methodological toolkit of influencing the process of spending, which includes managerial actions , the purpose of which is for the enterprise to obtain a high positive financial result of its activity. It was determined, that cost management at the enterprise involves the performance of general functions inherent in the management of any object and specific functions. It is justified, that consideration of the principles of cost management should be carried out through a thorough coverage of their substantive basis with the disclosure of the opportunities that the enterprise receives in cost management, subject to compliance with one or another principle. The main principles of cost management of the enterprise are summarized, which include the following principles: system-complex approach to cost management; intersubject feedback; resource reservation; continuity of cost management for the production and sale of a specific product; economic validity and reliability of information about costs; the adequacy of the results of management actions regarding costs; independence. Conclusions. The author's position on the essence of cost management is outlined in the article, the general and specific functions of cost management are detailed, and the principles of the cost management process at the enterprise are detailed. It is ensuring maximum compliance of the specified principles at the enterprise that enables the effectiveness of cost management, which is part of the general management system of the enterprise and reflects the efficiency of economic activity.

Application of calculus function and value chain analysis method in the quantification of financial flexibility management indicators

Abstract n order to explore the application of calculus function and value chain analysis method in the quantification of financial flexibility management indicators. Firstly, by combing the development process of value chain accounting exploration and cost management at home and abroad, a more complete value chain accounting framework is constructed. Then, a practical case is applied to illustrate the advantages of introducing value chain accounting and its analysis method to improve cost management in advanced manufacturing industry. Finally, it introduces the preconditions for using value chain accounting and its analysis methods to improve cost management. The experimental results show that after the implementation of the improved cost management system, it largely depends on information technology to transfer cost and other confidential information. At this time, it is also very important to do a good job in internal control, otherwise it will lead to the leakage of enterprise confidential information and unimaginable consequences. This requires enterprises to establish a rigorous and complete risk assessment system, including risk identification, risk analysis and risk resolution, implement control activities on this basis, and establish a perfect internal supervision and daily operation and maintenance mechanism of information system. It is proved that the calculus function and value chain analysis method can effectively quantify the financial flexibility management index.

АНАЛІТИЧНЕ ДОСЛІДЖЕННЯ ПОТОЧНИХ ВИТРАТ ПІДПРИЄМСТВ ТОРГІВЛІ УКРАЇНИ В КАРАНТИННИЙ ПЕРІОД

To ensure the overcoming of the negative consequences of the financial crisis and the further effective functioning of Ukrainian trade enterprises, it is necessary to optimize costs and develop a strategy for managing them to ensure the development of their operating, investment, innovation and financial activities. The most important element of the cost management system is the analysis, the main purpose of which is information support, comprehensive evaluation of the results achieved and justification of management decisions for their further rationalization. Both absolute and relative indicators can be used in relation to the amount of invested costs. The aim of the article is to study the dynamic changes in the total volume and level of costs of Ukrainian trade enterprises in the crisis period caused by the Covid-19 pandemic. In the process of research, general scientific methods were used: the method of system analysis - to clarify the main categories of research; abstract-logical method - for theoretical generalization and conclusions about the main results of calculations; graphical method - to visualize the analytical material to reflect the main results of the analysis of the dynamics of the total volume and level of costs in crisis conditions. The article substantiates the need to study trends in the total volume and level of costs of trade enterprises in crisis conditions. The author fulfilled a comparison of the dynamics of the total costs of trade enterprises with enterprises of other activities. The indicator of the level of expenses is calculated and analyzed both by trade enterprises as a whole and by individual types of trade activity. The main factors influencing the growth of costs of trade enterprises in the crisis period are identified. The analysis of the development of the total amount and level of costs carried out in the article deepens and expands the practical possibilities of improving the cost management process of trade enterprises in order to maintain the appropriate level of their efficiency during the crisis. Prospects for further research in this area consist in a detailed assessment of the impact of factors on the amount and level of costs of trade enterprises.

Research on the Whole Process Cost Management of Government Investment Projects

Research on the Whole Process Cost Management of Government Investment Projects

Информационное обеспечение как базис управления трансакционными издержками маркетинговой деятельности производственного предприятия

The purpose of the study is to formalize the stages of managing transaction costs of marketing activities of a manufacturing enterprise based on information about their amount in the parameters of the contract. The scientific novelty of the research lies in the fact that the paper proposes the progressive stages of the process of forming initial data for managing the transaction costs of marketing activities; the grouping of transaction costs for marketing at the pre-contract, contract and post-contract stages with their details depending on the volume of sales and independent of it is proposed; the stages of managing transaction costs of marketing activities of a manufacturing enterprise are recommended, focused on analyzing forecast information taking into account a variety of assumptions and assessing the variability of the environment within the framework of the contract. As a result, it was established that the management of transaction costs of marketing activities of a manufacturing enterprise should be carried out by management continuously by analyzing information structured for each commercial transaction, which allows management to constantly and discretely possess information on each contract. At the same time, the financing of the transaction cost management process should not constitute a significant part of the business expenses of the organization. The use of the management information support proposed by the author for managing transaction costs in the implementation of marketing activities in practice allows a manufacturing enterprise to obtain forecast values of commercial expenses in relation to upcoming deliveries, to assess the economic effect of profitability indicators for them.

Project Cost Control Based on Whole Process Cost Management Model

Project Cost Control Based on Whole Process Cost Management Model

Time and Cost Management in the Construction of Large Energy Facilities

The article deals with the problems of time and cost management in the construction of large energy facilities. The practical value of standards in the field of time and cost management in the construction of large energy facilities is often questioned by specialists in various fields of project activity. Practitioners at lower and intermediate levels often complain about the lack of clear and effective tools for solving specific problems in project management practice. However, the skillful application of standards can not only increase the likelihood of success for a wide range of diverse projects of large energy facilities with obtaining expected business values "at the output" of the project. The purpose of this study was to study the features of management terms and cost in the construction of large energy facilities. The objectives of the study included establishing links between the methods recommended by the project management body of knowledge (PMBoK) guidelines for determining the project budget and the methods used in practice for determining the cost of construction projects for large energy facilities, formalized in the current regulatory documents and state building codes of Russia. For this (according to the PMBoK standard), the basic methodological foundations of the project cost management process, its components and characteristic features were determined. The main stages of the life cycle of construction projects of large energy facilities, in which the cost of design work is assessed, are determined, the goals of such an assessment and the project participants who carry it out are determined. As a result, a complete methodological identity was established between the methods for assessing the project cost of large energy facilities recommended by the PMBoK standard and the methods for determining the cost of construction specified in the current regulatory documents in the construction industry in Russia.

Research on Time-Driven Activity-Based Management System of Public Hospitals.

ObjectiveTo provide references for effective implementing cost management for public hospitals through establishing time-driven activity-based management (TDABM) system. The TDABM system was established from hospital cost accounting, budget, control, and performance.ResultsThe established TDABM system could improve the precision of hospital cost accounting, improve medical staff's working efficiency, realize the whole process of cost management, and enhance the competitiveness of the hospital.ConclusionThe activity of implementing TDABM in public hospitals had practical significance.

Research on the Application of Whole Process Cost Management in Construction Project Management

Research on the Application of Whole Process Cost Management in Construction Project Management

УПРАВЛІННЯ ВИТРАТАМИ НА ПІДПРИЄМСТВАХ РЕСТОРАННОГО ГОСПОДАРСТВА

The article considers the views of scientists on the nature of costs and the process of cost management in restaurants. Comparative analysis of the interpretation of the nature of costs is aimed at reflecting the value of resources used by restaurants to obtain financial results and achieve important goals of the institution. The success of institutions depends on two conditions: the volume and quality of performance of functions and tasks to be solved (production volume, sales, services, etc.); and resource management. Thus, cost management means improving the management process of all aspects of the enterprise. Cost management should be considered as a complex concept that ensures the development of management decisions. The advantages and disadvantages of approaches to cost management of the restaurant business are identified. The components of the cost management process are proposed, which reflect the sequence and connection of the main stages of management decision-making. The practical implementation of the proposed components will allow the management of the institution to build a process of cost management, which will operate effectively in conditions of uncertainty of market relations; to allocate costs in the conditions of limited available resources for the purpose of their effective use; make effective management decisions that will facilitate the rapid adaptation of the existing cost management system to changes in the external environment. Effective cost management plays a crucial role in the process of reproduction, as covering the cost of production allows you to restore and expand the scale of activities. The size of the profit of the restaurant depends directly on its costs, as costs affect the efficiency of production, pricing and competitiveness of products in the market. In addition, the study of costs allows you to decide on the feasibility of the hospitality industry. To form an effective cost management system, increase the volume of economic activity of enterprises, reduce the cost of production, improve its quality and improve the quality of management decisions, the article proposes to develop and implement a program to increase competitiveness. This means an organized set of works aimed at solving the problem of increasing the competitiveness of products and institutions as a whole, the implementation of which is limited in time, as well as related to the consumption of specific financial, logistical and labor resources.

Аналіз впливу зовнішніх факторів на процес управління витратами на підприємстві

Аналіз впливу зовнішніх факторів на процес управління витратами на підприємстві

ЗАРУБІЖНИЙ ДОСВІД УПРАВЛІННЯ ВИТРАТАМИ СІЛЬСЬКОГОСПОДАРСЬКИХ ПІДПРИЄМСТВ В УМОВАХ РОСІЙСЬКО-УКРАЇНСЬКОЇ ВІЙНИ

The paper studies the foreign experience of cost management of agricultural enterprises in the conditions of the Russian-Ukrainian war to ensure the functioning of the agro-industrial complex of Ukraine. It was established that agriculture is determined by the priority sector of the Ukrainian economy in the commodity structure of exports. It was determined that in 2010, in the structure of the gross production of agriculture, the share of crop production was 69.9%, and livestock – 29.4%, then in 2019 this trend was as follows – 79.1 and 20.8%, respectively. It has been established that Ukrainian agricultural enterprises grow high-yield crops, such as cereals, rape and sunflower, which are in high demand on the international market. It has been established that cost management of agricultural enterprises can be defined as an interconnected set of works that form corrective effects on the process of spending during the agricultural activity of a logistics entity, aimed at obtaining the optimal level of costs in all subsystems of a logistics entity. The system and functions of cost management of agricultural enterprises are analyzed. The proposed improved model of the cost management process of agricultural enterprises in the conditions of the Russian-Ukrainian war. Having analyzed foreign experience with the aim of coordinating the entire cost management system of agricultural enterprises in the conditions of the Russian-Ukrainian war, it is necessary to create special departments – control departments, whose functions include planning and control of costs. The measures used by the government to support the activities of small and medium-sized agricultural producers with a turnover of no more than 20 million euros per year, which is equivalent to a company cultivating up to 10 thousand hectares, were analyzed. due to martial law conditions. It has been found that to increase the efficiency of agricultural production, a rational use of production resources with the highest possible level of labor productivity is required.

ОПТИМИЗАЦИЯ НОМЕНКЛАТУРЫ СТАТЕЙ ЗАТРАТ СТРОИТЕЛЬНОЙ ОРГАНИЗАЦИИ ДЛЯ ЦЕЛЕЙ КАЛЬКУЛЯЦИИ СЕБЕСТОИМОСТИ ВЫПОЛНЯЕМЫХ РАБОТ

The calculation of the cost of the work performed is necessary to ensure an effective cost management process for the economic activities of a construction organization. When calculating the cost of construction work, financial information is generated that is used in the accounting activities of the enterprise to reduce the amount of production and other costs. However, the optimization of the nomenclature of cost items of construction enterprises plays an important role in ensuring the reverse process – with the efficient allocation of resources to ensure a high level of profitability of the organization’s construction activities. The scientific article presents the results of the analysis of the features of the optimization of the nomenclature of cost items of a construction company to ensure the goals of calculating the cost of work performed. The relevance of scientific research on the selected issue is due to the fact that, thanks to the optimization of the nomenclature of cost items for a construction organization, cost management and the formation of the cost of construction work are ensured. This, in turn, ensures the management of the competitiveness of construction work and increase the economic security of the construction company. The article considers the need to manage costs while ensuring the economic efficiency of construction organizations. A complete classification of the composition of costs, which are included in the calculation of the cost of the work performed by a construction company, is given. The main types of cost of construction work of the organization are identified. The main types of costing of construction works are listed. Their brief characteristics and advantages in the use of cost management in the enterprise are considered. The role of optimizing the nomenclature of cost items of a construction organization is analyzed in providing the calculation of the cost of construction work performed. Possible directions for optimizing the range of cost items for a construction organization are identified to ensure the calculation of the cost of work performed. At the end of the article, the author summarized that the optimization of the nomenclature of cost items of a construction organization allows you to systematize costs for specific types and classifications that reduce costs when assessing the costing of the work performed.

Analysis on Current Situation of Project Cost Management and Whole Process Cost Management

Analysis on Current Situation of Project Cost Management and Whole Process Cost Management

Implementation of a Risk-oriented Approach to the Formation of Information and Analytical Support Cost Management Process

Implementation of a Risk-oriented Approach to the Formation of Information and Analytical Support Cost Management Process

Innovative activity of the enterprise in the context of improving the cost management mechanism

Effective enterprise management is impossible without rational planning and control of costs. Therelevance of the topic is due to the fact that the introduction of an effective cost management mechanism inthe enterprise is a time-consuming process that requires professional knowledge in enterprise management.Proper cost management allows you to expand the boundaries of the business, allows the company to findadditional sources of resources, make its products more attractive to consumers and expand market share,to win additional market segments. Being in constant interaction with a large number of suppliers, partnersand consumers, it is necessary to use different models of cost reduction depending on the situation in theenterprise. And each company individually chooses the most effective methods of cost optimization.The article presents and considers the features and methods of improving the cost managementprocess in the food industry by implementing various types of innovations. The stages of the cost management process and the features of cost accounting have been identified. The main problems that food industryenterprises may face in cost accounting have been highlighted and recommendations have been given toprevent and eliminate these situations. Methods of cost reduction at enterprises have been proposed. Themethod of obtaining a positive economic effect on enterprises from the introduction of product, technologicaland organizational innovations has been considered. The introduction of different types of innovations is anintegral part of management in the enterprise, as skillful cost management together with novelty gives adouble economic effect. The reasons for overspending and a list of measures to minimize them have beengiven.