Progressive methods of cost management. Enterprise Cost Management System

An enterprise as an object of management is a complex, dynamic, industrial, socio-economic, technical and organizational system that is open to the influence of the external environment. In the production process of an enterprise, various material elements and human resources are combined, between which there are many connections. The enterprise is a multi-element formation and is divided, depending on the applied basis (attribute) of division, into various sets of elements (subsystems).

The object of cost management is the actual costs of the enterprise, the process of their formation and reduction.

The subject of cost management are the managers and specialists of the organization and production units, i.e. the control system.

Thus, cost management system- this is a target, multi-level system, where the object of management is the costs of the organization, and the subject of cost management is the control system.

Figure 1 shows classification of cost management objectives in the system of enterprise goals Cost management is a dynamic process that includes direct and feedback management actions, the purpose of which is to achieve a high economic result of the enterprise.

The management accounting system should be a comprehensive information system that provides objective, necessary information to all interested internal users of information.

Depending on the form of communication between management and financial accounting, there are autonomous and integrated management accounting systems.

Autonomous management accounting system involves separate financial and management accounting, which creates the conditions for maintaining commercial secrets about the levels of production costs, the profitability of certain types of products.

The main differences between financial and management accounting are presented in Table 1.

Table 1 Main differences between financial and management accounting

financial accounting	Management Accounting
Costs are grouped by economic elements	Costs are grouped by costing items
Cost accounting: does not take into account the place of origin costs, only synthetic cost accounting is maintained, therefore, information about the total cost of producing finished products	Cost accounting: details this information Reflects material, labor costs used in the main production, general production and general business
Income accounting: the total amount of income. On account 80 The balance sheet profit is reflected, taking into account except for profit from the main activity, non-operating income and expenses, profit losses) from other operations	Income accounting: two financial results of production activities are reflected - marginal income and profit. At the end of the period, fixed costs collected on account 26 as periodic are written off to the cost of goods sold

The connection between them is carried out using paired control accounts of the same name, which are called reflected or mirror accounts.

At integrated accounting system mirror accounts are not used, a single system of accounts and accounting entries is used. The connection between financial and management accounting is carried out with the help of control accounts, which are the accounts of expenses and income of financial accounting.

There are many cost management systems, each system is effective in certain economic conditions, depending on the goals set by the enterprise:

• direct costing
• standard-cost
• target costing
• kaizen coast
• cost killing
• break-even cost management
• benchmarking

Essence direct costing systems consists in dividing costs into fixed and variable depending on the volume of production, while fixed costs are not included in the calculation of the unit cost of production, but are written off to financial results. Practice shows that the division of costs into fixed and variable is conditional.

Costs of the same type can behave differently. There are costs that change their value in a certain economic situation. It depends on the following factors: the length of the period for making a decision, the divisibility of production factors. Over a long period of time, all costs become variable. Many costs increase not gradually, but in steps.

At the core Standard-cost systems there is a preliminary rationing of costs. Standard rates are set in order to bring the actual costs to the standard rates through good management. If deviations occur, the standard norms are not changed, with the exception of economic conditions (the cost of materials, labor). Deviations accumulate over the course of the year and are written off as losses. Calculation is calculated on the basis of standard norms, is a method of operational production management. The identified deviations are analyzed to determine the causes of their occurrence.

The system is used to evaluate the activities of individual employees and management as a whole, to prepare budgets and make management decisions.

Standard costs are planned costs per unit of output. They consist of three elements of production costs - direct material and labor costs and overhead costs.

ABC system (activitybasedcosting) has become widespread in enterprises of various profiles. This method means cost accounting for operations (functional cost accounting). . The application of the system is effective under certain conditions: direct costs make up the bulk of the costs, the company must produce 1-2 types of products with approximately the same costs. If the enterprise does not meet such requirements, the cost indicators will be distorted: the margin for small-scale products is underestimated and the mark-up for large-scale products is overstated, the high profitability of complex products compared to simple products, etc.

The essence of the systemJIT (jist-in-time) reduced to the rejection of the production of products in large batches. Instead, a continuous-flow object production is being created. From a practical point of view, the main goal of the system is the elimination of unnecessary costs and the efficient use of the production potential of the enterprise. The absence of large inventories increases the financial resources, flexibility and competitiveness of the enterprise.

The system is demand-driven, as it produces as much product as the customer needs. Demand accompanies products through the production process.

Under the system, labor costs and overheads are not written off to the production accounts, but directly to the cost of goods sold.

Cost Accounting System Target Costing It is used at the design stage of a new product or the modernization of obsolete products.

The idea of ​​Target Costing is based on the concept of target cost and the formula for its calculation: Cost = Price - Profit.

Price is the market price of a product (service), which is determined using marketing research. Profit - the desired value that the organization seeks to obtain from the sale of this product (service).

Target costing considers the cost not as an indicator calculated in advance according to the standards, but as a value that an organization should strive for in order to offer a competitive product to the market. Therefore, the task of Target Costing is the development of a product (service), the estimated cost of which is equal to the target cost. If a new product is such that it is impossible to achieve its target cost without compromising quality, a decision is made that this product will not be developed and introduced into production.

Kaizen costing system(translated from Japanese as "improvement in small steps") is the process of gradually reducing costs at the stage of production, as a result of which the required level of cost is achieved and the profitability of production is ensured.

Kaizen Costing is used in the Japanese management accounting model in parallel with Target Costing. Both systems have the same goal - to achieve the target cost: Target costing - at the stage of designing a new product, Kaizen costing - at the stage of production of products. If at the design stage the difference between the estimated and target costs is up to 10%, then a decision is made to start production of such a product with the expectation that 10% will be eliminated during the production process using Kaizen costing methods. Reducing the difference between the estimated and target cost is called kaizen task, which concerns all personnel of the organization from engineers to managers and the implementation of which is properly encouraged through the personnel management system.

Cost Killing System is aimed at identifying reserves for the maximum reduction in the costs of the enterprise and improving the efficiency of its activities as a whole. There are two types of cost killing: internal and external. That is, it is possible to minimize costs within the enterprise (for example, by creating a complex, special wage system with a “cunning” scheme of rewards for saving resources and penalties for overspending them) or try to reduce the purchase prices for purchased goods and services, i.e. influence the external environment of the enterprise - suppliers and contractors.

Exist cost management system based on break-even point. The break-even point (critical, "dead" point) shows the volume of production (sales), at which the proceeds from sales fully cover the costs. In it there is a division of zones of profitability and unprofitability.

Knowledge of fixed (conditionally fixed) and variable (conditionally variable) costs, as well as the price of goods (work, services) allows us to calculate in physical terms the volume of production (performance of work, provision of services), which ensures the break-even operation of the enterprise.

Another management system that is effectively applied abroad is Benchmarking. Effective Benchmarking involves the analysis and application of the best business management practices, obtaining competitive advantages. Thanks to Benchmarking, improvement studies are planned in critical business areas. The essence of the system is to compare the state of cost management at the enterprise with the leading enterprises for further decision-making in the field of cost management.

Any company activity that can be measured can be Benchmarked. Benchmarking objects can be the level of inventory, work in progress, the amount of waste, the level of rejects, the level of costs and the reasons for their occurrence, etc.

Currently, the following types of Benchmarking are distinguished: product, strategic, internal, functional, general and with a competitor. Grocery involves comparing products according to different criteria and indicators. Internal involves making comparisons between different structural units. Benchmarking with a competitor compares the performance of a given company and a competitor. Functional involves a comparison not with intra-industry competitors, but a comparison of individual functions of the company's activities in structural divisions. General benchmarking compares the business processes of organizations within the same industry. Strategic compares the strategies of different companies.

Existing methods of management accounting can be classified according to various criteria (Fig. 2). Arrows show possible combinations of features.

Table 2 presents the advantages and disadvantages of each of the considered cost accounting systems.

Table 2 Advantages and disadvantages of cost accounting systems

Direct costing
Advantages	disadvantages
The necessary information can be obtained from regular financial statements without creating additional accounting procedures Profit of the period does not depend on fixed overheads when changing inventory balances The laboriousness of the distribution of overhead costs is reduced, it becomes possible to determine the contribution of each type of product to the formation of the enterprise's profit In combination with the standard costing method, it allows you to optimize the production program, reasonably determine the prices for new products, justify the need or refusal of new orders. Allows you to choose between own production or purchase of products	Many types of costs cannot be unambiguously categorized as variable or fixed. Little attention to fixed costs Distortion of the financial result due to underestimation or overestimation of the cost of previously manufactured products Creates the illusion of profitability for technologically complex projects requiring significant investment
Standard-cost
Advantages	disadvantages
Formation of the necessary information base for analysis and cost control, visibility in reflecting deviations from the plan in the process of cost formation Minimization of accounting work related to costing, timely provision of managers with information on expected production costs	Application for recurring costs The success of the application depends on the composition and quality of the regulatory framework Inability to establish norms for certain types of costs
Continuation of table 2
ABC system
Advantages	disadvantages

Significant increase in the justification for attributing overhead costs to a specific product, more accurate costing Ensuring the relationship of the information received with the cost formation process	Requires significant changes in the accounting system and improvement of information support systems, which entails an increase in management costs
JIT system
Advantages	disadvantages
Inventory reduction Increased order fulfillment reliability Reducing the risk of order obsolescence Improving the quality of production	The supply is carried out in such small batches that it turns into a piece.
Target costing
Advantages	disadvantages
Marketing orientation of production Determining Target Costs for New Products Cost control at the product development stage	Targeted cost reductions may require significant time or significant investment The technical capabilities of the enterprise do not always allow to reduce the cost to a given level
Kaizen costing
Advantages	disadvantages
Provides continuous cost reduction and keeping them at a given level	It is necessary to motivate employees and a corporate culture that supports the involvement of personnel in the activities of the organization
Cost killing
Advantages	disadvantages
Allows you to quickly reduce the costs of the enterprise, arising both in the internal and external environment	Rigidity of the method (including the reduction of wage costs and staff cuts) Requires systematic application (use from time to time, to certain types of costs or in separate divisions of the enterprise does not bring tangible results)
Continuation of table 2
Break even point analysis
Advantages	disadvantages
Allows you to determine the sales volume at which break-even production or a given financial result is achieved Simplicity, clarity and efficiency of the method	The division of enterprise costs into variables that linearly depend on the volume of production, and constants that do not depend on it, which in practice is very difficult to do unambiguously Any change in the factors included in the model (variable and fixed costs, sales volume and price) can lead to a significant change in the final result If the number of product types is more than three, the graphical solution of the model becomes impossible It is based on the assumption that labor productivity, which directly determines variable costs, does not depend on scale and does not change over time, and there are no structural changes in the qualitative state that characterize the change in the enterprise system
Benchmarking
Advantages	disadvantages
Allows you to get a comprehensive assessment of cost management in an enterprise in comparison with a reference enterprise, which is a serious prerequisite for the gradual improvement of cost management based on the experience and technologies of other enterprises	Incorrect choice of the reference enterprise reduces the effectiveness of the method Requires consistency and purposefulness in applying the experience of other enterprises

It should be noted that in the management process, different systems and management methods are used, as well as their combinations at the same time.

List of sources used

• 1. O. B. Vakhrusheva “Accounting and management accounting”. Tutorial. - M. "Dashkov and K" 2011
• 2. Serebrennikov G.G. "Cost Management" Textbook - TSTU 2007
• 3. N.G. Prokhorova, Yu.N. Lapygin “Cost management at the enterprise. Planning and forecasting, analysis and minimization of costs "- M. EKSMO 2009
• 4. Koteneva E.N. Krasnobolodtseva G.K. - M. "Dashkov and K" 2007
• 5. M.S. Abryutin "Analysis of the financial and economic activities of the enterprise": Educational and practical guide .- M .: Publishing house "Delo and Service" 2004

The set of elements and links between them, which have a certain integrity, is called the control system. The interaction of subjects, objects, functions, tools and methods of management should ensure the preservation, functioning and development of this system, increasing the efficiency of the costs incurred by the enterprise.

The goal of the cost management system is achieved as a result of the implementation of the management process, which involves the functioning of the adopted organizational structure, which reflects the progress of the management functions and characterizes its dynamics. This process has its own (specific) content, due to its essence; their stages and internal stages of implementation, involving a certain sequence of actions in space and time. The qualitative originality of the cost management process is revealed in the implementation of a systematic approach.

This approach allows you to comprehensively explore the management object, build a cost management system, highlight the main tasks of the management process and determine the sequence of their implementation. The basis of this approach is the principles of unity, development, global goal, functionality, decentralization, hierarchy, uncertainty and organization.

The effectiveness of cost management will increase with a combination of systematic and situational approaches, since with a lack of information, management is carried out on the basis of determining the most important situational factors.

In the process of its functioning, the cost management system is divided into three subsystems:

the control subsystem or subject of control;

managed subsystem or control object;

communication subsystem.

The subjects of cost management are the managers and specialists of the enterprise, as well as the relevant management bodies. The object of control is the costs depending on the goal. They, as an object of management, are considered as a whole and by individual components (in accordance with their classification), which are of interest in the management process. The communication subsystem includes a direct communication channel through which input information is transmitted, and a feedback channel through which information about the state of the control object is received. As a result of the influence of the control subsystem, the cost management system goes into various states, from which the most preferable one is selected.

The effectiveness of such a system is determined by the interconnection of all its elements, their focus on achieving a common goal and compliance with the laws, principles and methods that are objectively in force in the field of management and reflect the most significant links between individual elements of management and elements of the external environment.

Cost management involves the performance of all functions inherent in the management of any object. Cost management functions include planning, coordination, control and motivation.

Planning includes the selection of long-term and immediate goals and the development of strategic plans to achieve them. Coordination is the determination of the best directions for the use of resources to carry out the planned plans. Control ensures the execution of decisions and feedback so that the goals of the enterprise and its strategic plans are implemented in an optimal way. Motivation is the formation of a system of motives that encourage the implementation of decisions made.

A. Fayol is considered to be the founder of the functional approach in management. He singled out five management functions: foresight, organization, managerial activity, coordination and control.

In modern literature there is no single view on the composition of management functions. However, there is now a widespread approach based on combining all of them into four main functions applicable to all enterprises. According to this approach, the management process consists of interrelated functions of planning, organization of activities, motivation and control, which are united by the connecting processes of communication and decision-making.

In turn, cost management functions are implemented using management tools: regulatory framework, classification, system of indicators, application of various methods of analysis and cost forecasting. Cost analysis, being an important element of the control function, prepares information for reasonable cost planning. Costs are analyzed both for the enterprise as a whole and for individual divisions, economic cost elements and cost items, types of activities, units of production (works, services) and other accounting items.

Cost management is a dynamic process, the purpose of which is to achieve a high economic result of the enterprise. At all stages of management, it is necessary to concentrate and correctly use cost data as a factor that plays an important role in making a decision and ultimately determining the competitiveness of an enterprise. The answer to certain problems that arise in the management process has always been the development and practical application of various cost management systems. At the heart of any cost management system is their classification according to various criteria, which is necessary to assess the degree of possible impact on certain costs or the degree of influence of certain costs on the final results of the enterprise.

Cost information can be used in three ways:

To assess the level of costs in a given period and determine profits;

for decision-making (in the field of price policy, growth and reduction of objects of activity, product renewal);

for control and regulation.

The first of these areas involves the calculation of the cost of production and income received for a certain period, by comparing which profit is determined. When making decisions in the field of pricing policy or reducing the volume of activities, updating products, creating the most rational program for maximizing profits, the company's management needs information about expected costs and incomes, since any decision is future-oriented. The third of these areas involves the collection of information on how costs are allocated between individual cost and responsibility centers.

So, using various classifications of costs and methods of their accounting, you can obtain the information necessary for certain purposes of enterprise management, and build a variety of cost management systems. Recently, the following cost management systems have been in the focus of attention of economists:

full cost management system (standard-cost, absorption-costing, total cost management system, or tcm, transaction costing method, or abc, etc.);

· cost management system for a reduced range of cost items (simple and advanced direct costing);

Responsibility center management system and controlling system. A brief description of cost management systems is presented in Table. 5.1. The issues of their functioning are not ignored by any monograph or practical guide on enterprise management, control of its activities or cost accounting.

Table 5.1 - Brief description of existing cost management systems

Such an element of the control function as cost analysis helps to evaluate the efficiency of the use of all enterprise resources, identify reserves for reducing production costs, collect information for preparing plans and making rational decisions. managerial decisions in the area of ​​costs.

The goals of creating a cost management system:

optimization of financial results through profit maximization;

Achievement of greater flexibility in the management and control of production costs;

· an objective assessment of the results of economic activity.

The main tasks of cost management should classify costs by type, by cost center, by their carrier, prepare a regulatory framework and standardize costs per unit of output, control and analyze costs.

There are two forms of communication between management and financial accounting, and they give two management systems: autonomous and integrated.

In an autonomous system, financial and management accounting are separate and keep a trade secret about the costs and profitability of production.

The main differences between financial and management accounting can be understood in Table 1.

Table 1

Key Differences Between Financial and Management Accounting

The connection between them is carried out using paired control accounts of the same name, which are called reflected or mirror accounts.

At integrated accounting system a unified system of accounts and accounting entries is used, and with the help of control accounts, a connection is made between financial and management accounting.

The cost management system generates information about the costs for managers of various levels of management within the enterprise in order to make the right management decisions.

An exemplary scheme for cost analysis by hierarchical levels of management is as follows:

The financial director of the enterprise is presented with: cost estimates for the divisions included in the enterprise, administrative and management expenses for the enterprise as a whole, sales costs, distribution costs, a report on the execution of estimates for the enterprise as a whole;

· to the head of production - costs for the divisions included in this production, information about the content of the office of the head, a report on the execution of estimates for production;

· to the head of the department - the cost of basic materials, the production rates of the main workers and their prices, the salary of auxiliary workers, auxiliary materials, energy, fuel, maintenance, other costs, downtime, total costs for the division.

At each of these levels, the costs are compared according to the planned and actual estimates, deviations for the reporting period and changes compared to the previous one are identified, which are divided into favorable and unfavorable.

All primary information about costs falls on the first level and the higher the level, the more abbreviated and less detailed the report will be. The director of the enterprise will only receive information about deviations in the enterprise and the costs that he can influence. So only those costs that relate to each level fall into each level.

The strategic level of management assumes the maximum allowable level of costs for a particular product, thus controlling competitiveness, variation in the purchasing power of the population, and the impact of government policy.

The organization of the system establishes who, in what time frame, using what information and documents, in what ways manages costs in the structure. Correlate cost centers and responsibility centers.

Timely coordination and regulation of costs allow the enterprise to avoid a serious disruption in the implementation of the planned economic performance.

There is such a cost management system as "Standard-cost". The creator of this system is an American economist Charter Garrison. The name "Standart Costs" refers to the cost that is set in advance (as opposed to the cost that is collected).

"Standard" - the number of material and labor (direct) costs necessary for the production of units of products, works and services or pre-estimated material and labor costs for the production of a unit of products, services, works. "Cost" is a monetary expression of the production costs for the manufacture of a unit of product.

Principles of cost accounting using the standard-cost method:

1. Development of norms (standards) of enterprise costs for each type of work and services

2. Drawing up a standard calculation of the cost of products, works, services.

3. Accounting for actual costs during the month, dividing them into costs according to norms and deviations from norms.

When these principles are followed, reliable information about the costs of the enterprise will be obtained.

The variance cost sharing principle provides the information underlying this system. Thus, the main focus lies on their identification and analysis, with the aim of their further prevention.

Standards depending on the price level:

· Ideal - implies the most favorable prices for goods, services and works.

· Normal - calculation at average prices in a certain economic cycle.

· Current - calculated at prices in a separate economic cycle.

· Basic - used to calculate the price index, since prices are set at the beginning of the year and do not change during the year; they are set at the beginning of the year and do not change during the year.

At enterprises, accounting for deviations from the norms is usually carried out according to these accounts:

· Consumption of materials

· Wage

Overhead costs

Cost price

The features of the system are that deviations are detected not with the help of documentation, but on special accounting accounts. Not everyone who uses this system reflect deviations from the norms in accounting. Some use special synthetic accounts for accounting, accounts for costing items and variance factors.

There are three options for reflecting costs in the accounts of accounting.

In the first option, production accounts are debited for actual costs, and all expenses are credited to the “Main Production” account. At the end of the month, finished products and work in progress are written off in credit. Deviations that remain in the "Main production" account are written off to the "Profit and Loss" account.

In the second option, deviations from the norms are looked at in the accounts "Materials", "Salary", "Indirect costs". Therefore, only standard costs are reflected in the Main Production account. Deviations are written off to the financial result.

In the third example, the combination of the first and second is used - accounting is carried out according to standard and actual costs.

The "standard-cost" system provides information on the expected costs of production and sale of products. It allows you to set a price based on a pre-calculated unit cost of products and services. The statement of income and expenses is prepared with the allocation of deviations from the standards and the reasons for their occurrence. one

1 This definition contains information from the book “Management Accounting” by Sheremet A.D., Nikolaeva O.E., Polyakova S.I. ed. Sheremet A.D. , 2010

There is also a cost management system - "Direct Cost".

"Direct-cost" - a method of cost accounting, according to which only direct costs should be included in the cost price. one

In this system, all costs for the reporting period and overhead costs are divided into variable and fixed costs. However, the cost of industrial products of the enterprise is planned and taken into account only in terms of variable costs.

Fixed costs are collected on the account "Main production" and written off to the debit of the account of financial results. Under this system, the income statement is characterized by marginal income and operating profit.

The advantage of the direct-cost system is the simplicity of costing, since there is no need to allocate fixed costs. It makes it possible to determine the lower limit of the price of products, forecasting the cost in case of changes in the business activity of the enterprise, determining the financial strength and the maximum volume of production and sales of the enterprise.

However, due to the fact that fixed costs are not taken into account, the Direct Cost system does not give the full cost of the product. And there is still the difficulty of separating costs into fixed and variable.

_________________________________________________________________________

1 This definition contains information from the journal “Audit and financial analysis” No. 2/2001, “Organization of management accounting according to the direct costing system”, Kerimov V.E., Komarova N.N., Epifanov A.A.
Chapter 2. Cost analysis of SAF-Service LLC

2.1 Characteristics of the enterprise "SAF-Service" LLC

Enterprise "SAF-Service" is a limited liability company. The legal address of the enterprise in the city of Perm. Date of foundation - October 25, 2006.

The Company has a separate property, an independent balance sheet, a bank account, a round seal containing the full name of the Company and an indication of its location, forms, company name and other means of individualization.

The Company is a legal entity and builds its activities on the basis of the Charter and the current legislation of the Russian Federation.

The main activity of the company is the activity of agents in the wholesale trade of chemicals.

The main purpose of the creation of LLC "SAF-Service" is the implementation of commercial activities for profit.

The staffing table of SAF-Service LLC has five point twenty-five hundredths of staff positions:

1. Director

2. Chief accountant

3. Head of Logistics Department (MTO)

5. Accountant

6. Safety Engineer

An employment contract is concluded with each employee of the organization in accordance with the Labor Code of the Russian Federation, which contains the main rights and obligations of the parties, the term of the employment contract, salary, working and rest conditions, conditions for granting vacation, work schedule.

Organizational structure of SAF-Service LLC

The management of the enterprise is in the hands of the director. He supervises the activities of all employees. The chief accountant reports directly to the director, and with the help of an accountant subordinate to him, is engaged in document management, cash flow and reporting. The head of the logistics department is responsible for the purchase and sale of products. The lawyer monitors contracts and annexes to them. The labor protection engineer is responsible for advising employees on labor protection and fire safety. The problem of the enterprise is that, due to its small size, the purchase and sale of products is only in the hands of the head of the logistics department. Often, customers do not have a clear plan for the necessary goods in the future, and there is no way to draw up a procurement plan.

At SAF-Service LLC, the processing of accounting information is automated. Conducted on the basis of the software "1-C Enterprise 8.1", from the collection of primary accounting data to the receipt of financial statements. In accordance with the accounting policy, the enterprise uses a journal-order form of accounting with the use of a software product.

The company does not sell its goods directly from the warehouse. When buying products, their further resale is carried out immediately and sent to the buyer's warehouse.

Delivery of goods is carried out by road using vehicles, both enterprises and suppliers. Suppliers are mostly permanent, as SAF-Service LLC tries to keep in touch with trusted people.

The main points for choosing suppliers:

Geographic - the closer the supplier is to the buyer, the greater the advantages in terms of time and payment for delivery;

Partnership - the possibility of discounts and shipments on credit for regular customers.

Delivery time depends on the term of payment and on the agreement between the supplier and the buyer. Typically, an enterprise purchases as many goods as they expect to use in the near future.

The pricing policy at the enterprise is set on the basis of the “average costs plus profit” method, as well as on the basis of current prices. The average cost spit profit method is the simplest and most common. The accrual of the "surcharge" on the cost of the purchased goods is its principle of operation. The value of this "surcharge" can either be standard for each type of product, or vary significantly depending on the type of product, sales volumes, expenses for it, and so on. However, this method does not provide a complete assessment of demand and competition, and accordingly set the optimal price.

This method is very common, because despite studying the demand of buyers and the prices of competitors, sellers know the costs better.

2.2 Enterprise cost analysis

To conduct an economic analysis of the costs of the enterprise, the following stages were developed:

1. Collection of information for 2010-2011.

2. Drawing up an aggregate balance sheet.

3. Drawing up a profit and loss statement for 2010-2011.

4. Grouping data into a structural table of income and expenses of the enterprise for 2010-2011.

5. Conducting a horizontal analysis of the balance sheet for 2010 -

6. Detailed volume of sales of goods and costs for 2011

7. Compile with the help of a diagram the dynamics of costs for 2010-2011.

According to the financial statements of the enterprise, we will draw up an aggregated balance sheet (Table 1).

Table 1

Aggregate balance sheet of SAF-Service LLC

The data is presented on the basis of financial statements for 2010-2011. Sources of information - annual balance sheet (form 1) and income statement (form 2) for 2010-2011.

table 2

Profit and loss statement for 2010-2011

Units of measurement in thousand rubles

The company's revenue increased by 16.94%. At the same time, the cost of sales increased by 16.08% and gross profit by 27.33%. Selling and administrative expenses increased by 18.93%. A 675.6% increase in sales profit resulted in a 452.44% increase in income tax. Net profit increased by 524.39%. Other income decreased significantly by 40.83% and other expenses increased by 506.4%.

Table 3

Income and expenses of LLC "SAF-Service" in thousand rubles.

Table 4

Vertical cost analysis of SAF-Service LLC for 2010-2011

Expenses in 2011 increased by 40438.9 thousand rubles, 13.98%, and income by 88455.05 thousand rubles, 16.43%.

Table 5

Horizontal analysis of the balance sheet of SAF-Service LLC

The growth of the balance sheet is accelerating. In 2011, there is a large decrease in fixed assets due to depreciation. The increase in the number of current assets is due to the fact that most of the goods are in transit and not transferred to the buyer at the end of the year. The increase in receivables is also associated with this. The amount of capital remains unchanged. Retained earnings increased.

When conducting a vertical analysis of the data presented above, the following conclusions can be drawn:

1. The real estate of the enterprise consists entirely of fixed assets. But at the end of 2011, the cost of fixed assets decreased by 34 thousand rubles.

2. At the beginning of the reporting period, current reserves consisted mainly of cash, but at the end of the reporting period, their number decreased by 186 thousand and most of them were stocks. At the end of the period, the cost of inventories increased by 1,791 thousand rubles.

3. A large share of the balance is receivables and at the end of the period it increases significantly - by 2709 thousand rubles.

4. Retained earnings indicate high financial performance, as at the end of the period its amount increased by 1,122 thousand rubles.

5. Borrowed funds consist entirely of short-term liabilities and at the end of the period increase by 8023 thousand rubles.

The situation in the enterprise for the year has changed for the better. Despite the increase in the share of variable costs. But their increase is due to an increase in the volume of products sold, which increases the profit from sales.

SAF-Service LLC rarely fails to fulfill the plan due to a lack of supply of goods, lack of information about buyers, consumer demand and sellers, minor miscalculations in the organization of trade and other aspects of marketing.

If we take the ratio of material costs, labor costs, transportation costs, rent, other costs in 2010, then the largest part of the costs are transportation costs - more than 50% of the total. In 2011, labor costs exceeded transport costs. However, this is due to an increase in sales volume and profit from sales, in connection with which an annual bonus was paid. Smaller expenses - banking fees, depreciation and other expenses increased

Rice. 1 Cost dynamics of SAF-Service LLC

Rice. 2 Cost structure of SAF-Service LLC

It can be seen from the figure that the largest share of expenses is accounted for by settlements with suppliers and contractors, tax expenses are in second place, and wages are in third place.

Costs characterize in monetary terms the volume of resources for a certain period used for the production and marketing of products, and are transformed into the cost of products, works and services.

The idea of ​​enterprise costs is based on three important provisions.

1. Costs are determined by the use of resources, reflecting how much and
what resources were spent in the production and sale of products for
certain period.

2. The volume of resources used can be presented in physical and monetary units, however, in economic calculations, they resort to the monetary expression of costs.

3. The definition of costs is always related to specific goals,
tasks, i.e. the volume of resources used in monetary terms is calculated according to the main functions of production and its implementation as a whole for the enterprise or for the production divisions of the enterprise.

The costs of production and sale of products include pre-production (non-recurring) costs, production costs directly related to the performance of technological operations, maintenance and operation of production equipment and machines, production management, and managerial and commercial costs associated with general, administrative management and marketing of products.

Expenses reflect a decrease in the means of payment or other property of the enterprise and are recorded at the time of payment.

The expenses of the enterprise, depending on their nature, conditions of implementation and directions of its activities, are divided into:

Expenses for ordinary activities;

Operating expenses;

non-operating expenses

Extraordinary expenses.

Ultimately, all expenses for the ordinary activities of the enterprise for a certain period must necessarily be transformed into costs.

Costs are the actual or estimated costs of the financial resources of the enterprise. Costs in the literal sense of the word are a set of transfers of financial resources and refer either to assets if they are able to generate income in the future, or to liabilities if this does not happen and the retained earnings of the enterprise for the reporting period decrease. Opportunity costs act as loss of income when choosing one of the ways to carry out economic activity.

Costs affect the final financial result of the enterprise - profit.

The subject of cost management are the costs of the enterprise in all their diversity.

The first feature of costs as a subject of management is their dynamism. They are in constant motion and change. So, in market conditions of management, prices for purchased raw materials and materials, components and products, tariffs for energy carriers and services (communications, transport, etc.) are constantly changing. Products are being updated, the consumption rates of material and labor costs are being revised, which is reflected in the cost products and cost levels. Therefore, the consideration of costs in statics is very conditional and does not reflect their level in real life.

The second feature of costs as a subject of management is their diversity, requiring the use of a wide range of techniques and methods in managing them.

The third cost feature is difficulties of their measurement, accounting and evaluation. There are no absolutely accurate methods for measuring and recording costs.

Fourth Feature - This complexity and inconsistency of the impact of costs on economic outcome. For example, it is possible to increase the profit of an enterprise by reducing the current costs of production, which, however, is ensured by an increase in capital costs for R&D, equipment and technology. High profits from the production of products are often significantly reduced due to high costs for their disposal, etc.

Cost management in the enterprise is designed to solve the following main tasks:

Identification of the role of cost management as an enhancement factor
economic performance;

Determination of costs for the main management functions;

Calculation of costs by operating geographical segments, production divisions of the enterprise;

Calculation of the necessary costs per unit of production (works, services);

Preparation of an information base that allows you to evaluate costs when choosing and making business decisions;

Identification of technical methods and means of measuring and controlling costs;

Search for reserves to reduce costs at all stages of the production process and in all production departments of the enterprise;

Choice of cost rationing methods;

Choosing a cost management system that meets the conditions of the enterprise.

The tasks of cost management should be addressed in a complex. Only this approach bears fruit, contributing to a sharp increase in the economic efficiency of the enterprise.

The basic principles of cost management have been developed by practice and boil down to the following:

Systematic approach to cost management;

Unity of methods practiced at different levels of cost management;

Cost management at all stages of the product life cycle
- from creation to disposal;

An organic combination of cost reduction with high quality products (works, services);

Avoiding unnecessary costs;

Widespread implementation of effective cost reduction methods;

Improving information support on the level of costs;

Increasing the interest of the production departments of the enterprise in reducing costs.

Compliance with all the principles of cost management creates the basis for the economic competitiveness of the enterprise, gaining a leading position in the market.

Cost management features

Cost management is the implementation of the entire range of functions of the management cycle aimed at improving the efficiency of the use of production resources in the enterprise.

Subjects of cost management heads and specialists of the enterprise and production divisions (production, workshops, departments, sections, etc.) speak. Individual functions and elements of cost management are performed by employees of the enterprise directly or with their active participation. For example, the dispatcher influences the coordination and regulation of the production process, and consequently, production costs; the accountant performs cost accounting, etc.

Control objects are the costs of development, production, sale, operation (use) and disposal of products (works, services).

Cost management features are primary in relation to production, i.e. to achieve a certain production, economic, technical or other result, you first need to make costs. Therefore, the goal of cost management is to achieve the intended results of the enterprise in the most economical way.

F1. Forecasting and planning costs divided into long-term (at the stage of long-term planning) and current (at the stage of short-term planning).

The task of long-term planning is to prepare information about the expected costs in the development of new sales markets, the organization of the development and production of new products (works, services), and the increase in the capacity of the enterprise. This may be the cost of marketing research and R & D, capital investments.

Current plans specify the implementation of long-term goals of the enterprise.

If the accuracy of long-term cost planning is low and is influenced by the inflationary process, the behavior of competitors, state policy in the field of economic management of enterprises, and sometimes force majeure, then short-term cost planning, reflecting the needs of the near future, is more accurate, since it is justified by annual, quarterly calculations. .

F2. Organization- the most important element of effective cost management. It establishes how the enterprise manages costs, i.e. who does it, in what terms, using what information and documents, in what ways. Cost centers, cost centers and responsibility centers for their compliance are determined. A hierarchical system of linear and functional relations of managers and specialists involved in cost management is being developed, which should be compatible with the organizational and production structure of the enterprise.

FZ. Cost coordination and control involve comparing actual costs with planned ones, identifying deviations and taking prompt measures to eliminate them. If it turns out that the conditions for the implementation of the plan have changed, then the costs planned for its implementation are adjusted. Timely coordination and regulation of costs allow the enterprise to avoid a serious disruption in the implementation of the planned economic performance.

F4. Activation and stimulation imply the search for such ways of influencing the participants in production that would encourage them to comply with the costs established by the plan and find ways to reduce them. Such a course of action can be motivated by both material and moral factors.

F5. Accounting as an element of cost management is necessary for the preparation of information in order to make the right business decisions. For example, when assessing the value of inventories, the costs incurred are determined by production accounting, and accounting provides information on the actual results of the enterprise and all its production costs. Production accounting is included in the management accounting system, which allows you to control costs and make decisions about their expediency.

F6. cost analysis, a component of the control function, it helps to evaluate the efficiency of using all the resources of the enterprise, identify reserves for reducing production costs, collect information for preparing plans and making rational management decisions in the field of costs.

F7. Control (monitoring) function in the cost management system provides feedback - a comparison of planned and actual costs. The effectiveness of control is determined by corrective management actions aimed at bringing actual costs in line with planned ones or at refining plans if they cannot be met due to an objective change in production conditions.

In modern conditions, to ensure the effectiveness of the company's activities, it is necessary to use a system-oriented approach in the organization of management accounting.

The efficiency of the entire company management system and its competitiveness in the market depend on the effectiveness of the cost management system of the cost enterprise. Currently, the following cost management systems have become widespread:

Consider modern enterprise cost management systems in more detail.

standard costing

At the beginning of the 20th century, the Standard costs system appeared in the USA, and then in Europe, as a method of preventing unjustified costs. The name of the system in a broad sense means "the cost price set in advance." The founders of this system are American economists G. Emerson, D.Ch. Garrison, T. Downey, M.H. Zhebrak and others.

The specificity of this system lies in the fact that the accounting reflects not what happened, but what should happen; not what is, but due, is taken into account, and deviations that have arisen are reflected separately. The main principles of this system are as follows:

• all costs incurred in accounting must be correlated with the standards;
• deviations identified when comparing actual costs with standards should be disaggregated by cause.

The main purpose of the system is to identify losses and deviations in the company's profits.

The system is based on preliminary (before the start of the production process) cost rationing. The amount of costs in the coming period is calculated based on their level achieved and the planned reduction. Identified deviations from the established standard cost rates are analyzed to determine the reasons for their occurrence. This allows the administration to quickly manage production costs. Accurate determination of deviations from established cost standards contributes to the improvement of the cost standards themselves.

The advantage of the Standard costs system is the prompt identification and prevention of negative trends in the process of forming the costs and profits of the organization.

A partial analogue of this cost accounting system in domestic practice is the standard method of cost accounting. Its distinguishing feature is that the domestic method focuses only on the production process and is not associated with its implementation. This makes it difficult to determine sales prices.

In the course of further historical development of cost and profit management systems, the integration of the Standard costs system and the cost accounting model by responsibility centers took place. This is how the System in time (SIT) method arose, the founders of which were R.D. McIlhattan, R.A. Howell, S.R. Sauce.

direct costing

The intensive development model of an economic entity required the solution of strategic management tasks based on a clear division of costs into direct and indirect, main and overhead, variable and fixed, production and recurring costs. As a result, in 1936 D. Garrison created the Direct Costing System (direct cost accounting system).

At present, the principles of the Direct Costing system have changed somewhat. The most important principle of grouping costs is their dependence on production (sales) volumes, i.e. division of costs into variable and fixed. The cost of production is planned and taken into account only in terms of variable costs.

The difference between the revenue from the sale of products and variable costs is the marginal income, which is the basis of the process of operational price management and pricing. With this method, fixed costs are not included in the calculation of the cost of production and are written off directly to reduce the profit of the organization.

Just-in-Time (JIT)

Today, manufacturing companies are increasingly focused on producing a high-quality and competitive product while minimizing the cost of its production. This strategy corresponds to the Japanese system Just-in-Time (JIT) - Just in time.

The JIT cost management system emerged in the mid-1970s. at Toyota.

The specificity of the method lies in the fact that the presence of inventory is considered as a negative factor that affects the flexibility and competitiveness of the enterprise, the lack of financial resources.

The Just-in-Time method provides for the supply of production shops with small batches, the practical elimination of work in progress, and the minimization of inventory. When applying this method, part of the costs of the enterprise from the category of indirect goes into the category of direct.

Under the JIT method, the reliability of order fulfillment is greatly increased, since much less time is spent on the purchase and storage of materials. Shorter order lead times and increased order fulfillment reliability also contribute to significantly reducing the need for safety stock and achieving greater production flexibility. At the same time, problems with product quality are easily identified and adjustments are quickly made to the production process.

The main advantages of the Just-in-Time system include:

• minimization of capital investments in inventory and the cost of ensuring their safety;
• reduction of the production and financial cycle of the organization and, as a result, a more rapid response to changes in market conditions, an increase in the turnover of economic resources;
• improving the quality of production, product, labor, reducing production losses, including from marriage;
• the transition of a part of indirect costs to the category of direct ones increases the accuracy of cost formation;
• the system of production cost accounting is simplified, including the procedures for allocating indirect costs.

As a disadvantage of the Just-in-Time system, one can indicate its focus on small-scale (custom) or single-piece production. The basis for the implementation of this system are well-established partnerships with suppliers, contractors, buyers. Failures in the supply chain directly affect the effectiveness and efficiency of the organization. As a result, management guidelines are more related to the supply sector.

Activity based costing (ABC)

As a result of the search for more effective cost and profit management tools, the ABC (Activity Based Costing) cost accounting method appeared. Initially, the ABC method was focused on improving the accuracy of calculating the cost of individual products, but then, over time, it was transformed into an effective business management model.

It is specific to this method that all production is considered as a set of work operations, functions. The definition of the list and sequence of work in the enterprise is carried out by decomposing complex work operations into the simplest components in parallel with the calculation of resource consumption.

Target costing

The homeland of the Target costing system (translated from Japanese as improvement in small steps) is Japan, where it appeared in the 1960s. Today it is spread all over the world, mainly in companies operating in innovative industries (automotive, mechanical engineering, electronics, computer, digital technologies) and in the service sector.

The idea underlying the Target Costing concept is simple and revolutionary at the same time. Japanese managers simply turned the traditional pricing formula inside out: Cost + Profit = Price, which in this concept was transformed into equality: Price - Profit = Cost.

The Target costing system, unlike traditional ones, provides for the calculation of the cost of a product based on a pre-set selling price. This price is determined with the help of market research, i.e. is actually the expected market price of the product or service.

To determine the target cost of products (services), the desired profit of the organization is subtracted from the expected market price. Further, all participants in the production process - from the manager to the simple worker - work to design and manufacture a product that meets the target cost.

N. Smirnova argues that Target costing allows avoiding the problems of reducing the quality of products and their consumer value for the buyer in the context of implementing a strategy to reduce costs and prime cost.

Kaizen costing

A direct continuation and an integral part of Target Costing is Kaizen costing - a system of continuous operational control over the level of costs, small improvements that ultimately lead to grandiose results. At the same time, both systems have the same task: to achieve the target cost.

However, this task is implemented in the first case (target costing) at the stage of designing a new product, in the second case (kaizen costing) - at the production stage.

The difference between the estimated and target costs should be minimized at the design stage of the product, for which an analysis of drifting costs is carried out (an analysis of the impact of each expense item on the cost of the product) and a search for options to reduce them.

If at the design stage the difference between the estimated and target costs is no more than 5%, then a decision is made to start production of such a product with the expectation that this discrepancy will be eliminated during the production process through “kaizen costing”. Reducing the difference between the estimated and target costs is called the kaizen task, which concerns all the personnel of the organization: from production workers to managers. It is set both at the level of each product, and at the level of the enterprise as a whole.

Benchmarking

The method of comparison with the best indicators of competitors (Benchmarking) is to identify gaps in key positions in the production of enterprise products in comparison with the best analogues available on the market, as well as to identify the causes of these gaps, to find opportunities to achieve the characteristics and quality indicators of the best samples. The basis for using this technique is the mandatory presence of a comparative base, which is associated with certain difficulties, given the realities of competition.

This method has the following varieties:

Best practice - comparing the effectiveness of the company's activities with the leaders of world production in various types of economic activity in order to find the best work practice;

Best in class - comparison of the company with leading competitors in this type of economic activity;

Best of best - comparison of individual internal processes with the performance of the best firms.

The problems of using the Benchmarking method have become especially relevant in the face of fierce competition and the development of competitive business intelligence. The study of the Benchmarking methodology and the solution of these problems are devoted to the works of many foreign and domestic scientists, in particular O.V. Alekseeva, I.M. Volkova, Yu.P. Voronova, D.A. Voloshin, I.N. Ivanova, O.E. Nikolaeva, T.V. Shishkova and others.

The Benchmarking method is inherent in the initial analysis of the internal environment of the company, the identification of bottlenecks in management, production, commercial processes, and then the search for best practices from competitors and representatives of related economic activities.

The objects for analysis and comparison can be production processes, innovation, technical solutions, labor motivation system, etc. The composition of indicators characterizing the activities of the organization and its competitors includes costs, cost, price, profit, profitability, etc. It is more expedient to compare by factor indicators - objects of strategic control and management: costs, cost, price, product quality, etc.

Life cycle costing (LCC)

The concept of life cycle costing (LCC) is to determine the cost of the complete life cycle of a product: from design to retirement.

Life cycle - the concept according to which economic goods representing tangible assets have their own period of existence.

The most important principle of this method is the forecast and cost management for the production of a product at the stage of its design.

The beginning of the life cycle is the moment when it becomes possible to use an economic good to satisfy a need. The end of the life cycle is the moment of exhaustion of utility, complete consumption of the economic good. At the same time, the life cycle of a product, project, organization is distinguished.

The main prerequisites for the emergence of this technique are: a reduction in the life cycle of products, an increase in the cost of pre-production and the start of production of products, an almost complete determination of financial indicators (costs and income) at the design stage.

With this method, a necessary element of cost classification is their grouping by life cycle stages:

• stage of new product development;
• the stage of bringing the product to the market (implementation);
• growth stage;
• maturity stage;
• decline stage.

The stages of the product life cycle are specific and affect the process of generating costs and profits. The influence of the stages of the product life cycle on the level of costs, their composition, structure, intended purpose, degree of efficiency is traced.

Planning in terms of product life cycle stages allows you to more accurately predict the main work operations and their corresponding costs.

Functional cost analysis (FSA)

One of the common methods used in making cost management decisions is cost-benefit analysis (FCA), which is aimed at minimizing costs while maintaining quality indicators and indicators of product destination.

Functional cost analysis - a method of systematic research of an object (product, process, organizational structure), aimed at improving the efficiency of the use of material and labor resources.

An element of the FCA is a cost analysis based on consumer value, the purpose of which is the economic justification of costs for the functions of the object, i.e. optimization of the ratio between the consumer properties of the object and the cost of its development.

Bibliography:

1. Abdukarimov I.T., Abdukarimova L.G. Evaluation and analysis of production costs and their role in the effective management of entrepreneurial activity // Finance: planning, management, control. 2011. No. 4.
2. Voronov Yu.P. Benchmarking in competitive intelligence // Technologies of intelligence for business.
3. Ivanov I.N., Fukova D.Yu. Competitive analysis. Benchmarking // Economic Analysis: Theory and Practice, 2009. No. 22.
4. Lapusta M.G. Industry Competitive Analysis and Key Success Factors.
5. Rumyantseva E.E. New economic encyclopedia: 4th ed. M.: INFRA-M, 2011.
6. Smirnova N. Target-costing allows you to manage the cost // Consultant. 2006. No. 7.
7. Sheremet A.D. Theory of economic analysis: Textbook. M.: INFRA-M, 2008.
8. Usatova L.V. Organization of modern management accounting at an industrial enterprise using foreign methods of cost accounting // Management Accounting. 2008. No. 7.