IMPLEMENTATION OF THE PROCESS APPROACH TO COST MANAGEMENT AT CHEMICAL INDUSTRY ENTERPRISES

UDC 657.2

  • Pshebelskaya Lyudmila Yur’yevna – PhD (Economics), Associate Рrofessor, Assistant Professor, the Department of Production Organization and Real Estate Economics. Belarusian State Technological University (13a, Sverdlova str., 220006, Minsk, Republic of Belarus). E-mail: psh-ly@inbox.ru

  • Kaplunova Eleanora Anatol’evna – Master’s degree student, the Department of Enterprise Economy and Management. Belarusian State Technological University (13a, Sverdlova str., 220006, Minsk, Republic of Belarus). E-mail: eleonorkam@mail.ru

DOI: https://doi.org/10.52065/2520-6877-2023-268-1-10

Keywords: management, fixed and variable costs, calculation methods, production cost, process approach, economy.

For citation: Pshebelskaya L. Yu., Kaplunova E. A. Implementation of the process approach to cost management at chemical industry enterprises. Proceedings of BGTU, issue 5, Economics and Management, 2023, no. 1 (268), pp. 76–82. DOI: https://doi.org/10.52065/2520-6877-2023-268-1-10.

Abstract

In modern conditions, there is a need for constant search and development of the most effective and efficient methods of cost management, with the help of which the enterprise could optimize them, analyze the impact of costs on performance results, and also form the price of products.

The methods of planning and cost accounting used in domestic practice do not sufficiently provide the necessary accuracy when calculating the cost of production. The bottleneck in cost management is the distribution of indirect costs in the calculation of final products. The article proposes the use of a process approach, which, according to the authors, best meets the needs of a modern chemical industry enterprise (in particular, Grodno Azot JSC). A feature of the production of most products of the chemical complex is multi-stage, and the traditional methods of cost accounting are absorption, operation costing.

The article considers the stages of implementation of the process approach to cost management in the production of caprolactam in JSC “Grodno Azot”. The ability to produce caprolactam in the JSC depends on minimizing the cost of this product, because any fluctuation of factors can lead to the fact that caprolactam and products of its processing will be uncompetitive. The proposed approach to cost management will reduce current costs, maintain the pace of sustainable development of the enterprise.

Download

References

  1. Naugolnova I. A. The basics of the process approach to cost management in industrial enterprises. Ekonomika, predprinimatelstvo i pravo [Economics, Business and Law], 2020, vol. 10, no. 3, pp. 753‒761 (In Russian).
  2. Naugolnova I. A. Methodology for allocating indirect costs per unit of output when managing costs by processes. Ekonomika, predprinimatelstvo i pravo [Economics, Business and Law], 2021, vol. 11, no. 8, pp. 2091‒2099 (In Russian).
  3. Prishchenko E. A., Nizovkina N. G. Improving the system of cost accounting and cost calculation. Mir ekonomiki i upravleniya [World of Economics and Management], 2018, vol. 18, no. 2, pp. 121‒131 (In Russian).
  4. Sinyalova A. E. Problems of cost accounting and calculation of production costs. Teoreticheskiye i prakticheskiye aspekty razvitiya nauchnoy mysli v sovremennom mire: sbonik nauchnykh statey [Theoretical and practical aspects of the development of scientific thought in the modern world: compilation of scientific artikles]. Ufa, 2017, pp. 178‒180 (In Russian).
  5. Kisets M. V. Actual tasks in the system of cost accounting and calculation of production costs. Uspekhi sovremennoy nauki [Successes of Modern Science], 2016, vol. 2, no. 4, pp. 40‒45 (In Russian).
  6. Wouters M., Morales S., Grollmuss S., Scheer M. Methods for cost management during product development: a review and comparison of different literatures. Advances in Management Accounting, 2016, pp. 139‒274. DOI: 10.1108/S1474-787120150000026005. Available at: https://www.researchgate.net/publication/301630125_Methods_for_Cost_Management_during_Product_Development_A_Review_ and_Comparison_of_Different_Literature (accessed 20.02.2023).
  7. Rounaghi M., Jarrar H., Dana L. P. Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability. Futur Bus, 2021, no. 31. Available at: https://doi.org/10.1186/s43093-021-00079-4 (accessed 10.02.2023).
  8. Fetisova O. A. Razvitiye teoretiko-metodicheskikh osnov kalkulirovaniya sebestoimosti produktsii i uslug organizatsii sfery internet-tehnologiy. Dissertatsiya kandidata economicheskikh nauk [Development of theoretical and methodological foundations for calculating the cost of products and services of organizations in the field of Internet technologies. Dissertation PhD (Economics)]. Perm, 2015. 186 p. (In Russian).
  9. Kulyakina E. L. Features applications differences by methods accounting of production expenses organizations chemical industry. Nauchnyy vestnik: Finansy, banki, investitsii [Scientific Bulletin: Finance, Banks, Investments], 2017, no. 3, pp. 140‒144 (In Russian).
  10. Sukhanova E. A. The problem of choosing a cost accounting method for production. Evraziyskiy nauchniy zhurnal [Eurasian Scientific Journal], 2016, no. 8, pp. 15–20 (In Russian).
  11. Ordynskaya M. E., Sitimov Z. R. Choice of method and system of cost accounting for production and calculation of production costs. Vestnik AGU [Vestnik ASU], 2017, no. 3 (205), pp. 77–91 (In Russian).
  12. Agarwal Т. Product Cost. Available at: https://www.wallstreetmojo.com/product-cost/ (accessed 18.02.2023).
  13. Almeida A., Cunha J. The implementation of an Activity-Based Costing (ABC) system in a manufacturing company. Procedia Manufacturing, 2017, no. 13, pp. 932‒939.
  14. Mackevicius J., Tamuleviciene D. Methodology of introduction of activity based costing. Nalogi, uchet, upravlenie riskami [Taxes, Accounting, Risk Management], 2019, no. 7, pp. 99‒109. DOI: 10.24411/2071-6435-2018-10061. Available at: https://cyberleninka.ru/article/n/methodology-of-introductionof-activity-based-costing/viewer (accessed 22.02.2023).
  15. Adnan Niazi Jian S. Dail Stavroula Balabani Lakmal Seneviratne Product Cost Estimation: Technique Classification and Methodology Review. Journal of Manufacturing Science and Engineering, 2006, May, pp. 563‒575. Available at: https://www.resear chgate.net/ publication/ 245368480_Product_Cost_ Estimation_Technique_Classification_and_Methodology_Review (accessed 09.02.2023).
27.02.2023