THE CONCEPT OF A PROCESS APPROACH TO COST MANAGEMENT

Recently, more and more attention has been paid to cost management issues, which is due to the rise in the cost of resources and the need to set prices at a low competitive level. Methods of management and cost accounting are undergoing changes, new concepts are being formed, one of which is a process approach to cost management. Process management is currently becoming more in demand. The experience of the leading companies of the USA, Japan, Europe, China at the international level shows its effectiveness, which is revealed in the relatively low cost of production and its high quality, an increase in indicators of companies’ revenue and profitability and their market share. The purpose of the article is to present the author’s concept of a process approach to cost management at enterprises. Its essence lies in the possibility of increasing the efficiency of the entire enterprise and reducing its costs due to internal reserves identified by the results of business process optimization. According to the author, although the process approach to cost management is promising, it has not yet received proper development. Therefore, the tasks of developing and improving the theoretical and methodological foundations of its implementation are set. The concept of the process approach to cost management is based on the most effective, in the author’s opinion, elements of such methods as ABC-costing, Value chain concept, Cost-drivers, Target-costing, Kaizen-costing, with the author’s additions. The article presents the author’s concept of a process approach to cost management at enterprises in the form of a structural and logical scheme, the elements of which allow the reader to understand by what methods its implementation and implementation are possible.

cost management, process approach to cost management, concept of process approach to cost management, cost management methodology, process management, ABC-costing, Value chain concept, Cost-drivers, Target-costing, Kaizen-costing

Naugolnova I. A. The concept of a process approach to cost management. Business. Education. Law, 2021, no. 4, pp. 173—177. DOI: 10.25683/VOLBI.2021.57.466.