Industrial enterprise cost management based on financial performance target

2019 ◽  
Vol 18 (6) ◽  
pp. 1124-1139
Author(s):  
M.V. Gryazev ◽  
◽  
O.V. Sorvina ◽  
S.E. Petrovicheva ◽  
◽  
...  
Keyword(s):  
Financial Performance ◽  
Cost Management ◽  
Industrial Enterprise ◽  
Performance Target

Does Commercial Banks Presence Enhance Profitability in Ghana?

2018 ◽  
Vol 19 (6) ◽  
pp. 1449-1461
Author(s):  
Kwame Mireku ◽  
Emmanuel Akomeah Sakyi ◽  
Joseph Akadeagre Agana
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Cost Management ◽  
Capital Adequacy ◽  
Bank Branches ◽  
Positive Effects ◽  
Management Quality ◽  
Specific Factors ◽  
Using Data ◽  
Macroeconomic Environment

The last few decades have witnessed an increasing drive for bank presence across Ghana due to commercial banks appetite for increased deposit mobilization. Although bank presence is crucial in savings mobilization for economic growth and development, its relationship with the financial performance of the banks is unknown within the context of a developing economy. The current study therefore investigates the implications of banks presence on the financial performance of the commercial banks in Ghana, using data from 2007 to 2013. Panel regression is used for the estimation. Our findings show that increasing banks presence does not necessarily translate into profitability of the commercial banks. A plausible deduction from the results indicate that growth in bank presence (bank branches) cannot improve alternate distribution channels of banks operations due to the strong competition in the financial sector, cost of operations and low savings culture in Ghana. The results also reveal that market concentration, cost management, capital adequacy and activity mix contribute positively to the financial performance of commercial banks in Ghana but not credit risk and management quality. We also document that the macroeconomic environment has positive effects on the financial performance of commercial banks. Following the above, we recommend that commercial banks should pay critical attention to bank specific factors such as cost management and capital adequacy ratios. Moreover, managers of the economy should strive to create a conducive and stable environment to increase their penetration in Ghana.

scholarly journals The Cost Management of Innovative Products in an Industrial Enterprise Given the Risks in the Digital Economy

2021 ◽  
Vol 12 (7) ◽  
pp. 1339
Author(s):  
Ekaterina Burova ◽  
Sergei Grishunin ◽  
Svetlana Suloeva ◽  
Andrei Stepanchuk
Keyword(s):  
Cost Management ◽  
Digital Economy ◽  
Industrial Enterprise ◽  
Innovative Products ◽  
The Cost

scholarly journals DUAL NATURE OF INDUSTRIAL ENTERPRISE COST MANAGEMENT SYSTEM

2019 ◽  
Vol 5 (2) ◽  
pp. 184
Author(s):  
Natalia Radionova ◽  
Margaryta Skrypnyk ◽  
Tayisiya Voronkova
Keyword(s):  
Value Chain ◽  
Management System ◽  
Cost Management ◽  
Industrial Enterprise ◽  
Enterprise Management ◽  
Market Demand ◽  
Dual Nature ◽  
Cost Management System ◽  
Enterprise Management System ◽  
The Cost

The research subject is the cost management system of an industrial enterprise. The purpose of the article is the theoretical substantiation of the methodical aspects of the cost management system as a part of the industrial enterprise management system. Each company pays attention to the formation of costs because they affect the financial results. The improvement of the enterprise management system in modern economic conditions will not be effective without the establishment of a functional efficient cost management system, the formation of which is advisable to implement using both domestic and international practices. However, not every Ukrainian industrial enterprise has an efficient cost management system that optimizes the level of costs. Methodology. The empirical and theoretical methods such as analysis and synthesis, logical approach, interpretation, modelling, and visual systematization using the graphical method have been used in the work. The article considers the place of the cost management system in the management system of an industrial enterprise. There has been shown the influence of the cost management system on the strategic and tactical purpose of the enterprise. Subsystems of the cost management system have been considered and their components have been disclosed. Functions of the cost management system have been presented and the value of each subsystem element has been considered. The structure of the cost management system in the enterprise management system is clearly represented. Practical implications. An efficiently operating cost management system cannot only be aimed at an enterprise’s surviving in today’s market conditions. It should facilitate the implementation of tactical and strategic enterprise goals. As tactical goals, we can note the growth of enterprise profitability. The enterprise strategic goal in a market environment is to increase its value. However, the efficient cost management is a rather complicated process, because costs are variable and consist of numerous elements of different content and origin depending on various factors that are sensitive to the external environment, often have a controversial composition and are hardly subjected to the desired regulation. Value/originality. The system approach has revealed the dual nature of the company’s cost management system. On the one hand, the enterprise cost management system is a subsystem of the enterprise management system. On the other hand, the cost management system can be considered as an independent system, which includes subsystems and a set of interconnected elements that interact with each other to achieve a high economic performance of the enterprise. Among the subsystems, there have been distinguished economic and functional, organizational and managerial. For the formation of the economic and functional subsystem, M. Porter’s approach to the creation of the value chain of production was used. Moreover, the value chain for an industrial enterprise should start not from the material and technical supply, as M. Porter proposed, but from the study of market demand for products.

scholarly journals Economic and mathematical modeling of industrial enterprise business model financial efficiency estimation

2020 ◽  
Vol 166 ◽  
pp. 13025
Author(s):  
Mykola Havrylenko ◽  
Vira Shiyko ◽  
Liliana Horal ◽  
Inesa Khvostina ◽  
Natalia Yashcheritsyna
Keyword(s):  
Financial Performance ◽  
Business Model ◽  
Financial Stability ◽  
Industrial Enterprise ◽  
Financial Efficiency ◽  
Industrial Enterprises ◽  
Financial Condition ◽  
Methods Of Calculation ◽  
Integral Measure ◽  
Efficiency Estimation

The article proposes two methods for evaluating the financial efficiency of a business model of industrial enterprises. In order to evaluate the financial efficiency of the business model of an industrial enterprise, a system of single indicators for assessing the financial condition of the enterprise by such components as financial stability, liquidity and solvency, business activity and profitability was formed. Fishburne’s rule weights the major components of an integral measure of an enterprise’s business model financial performance. In addition, an integral measure of the financial performance of the business model is modeled using the fuzzy set method and taxonomic analysis, which will help to evaluate the financial performance level of the business model more objectively. The comparative analysis of the obtained results by different methods of calculation of integral indicators is carried out.

scholarly journals Accounting information when calculating the cost of production of an industrial enterprise as an element of cost management

2021 ◽  
Vol 81 (1) ◽  
pp. 86-95
Author(s):  
T. Kuvaldina ◽  
◽  
O. Zhaltyrova ◽  
Keyword(s):  
Economic Efficiency ◽  
Cost Management ◽  
Accounting Information ◽  
Cost Accounting ◽  
Industrial Enterprise ◽  
Cost Calculation ◽  
Market Conditions ◽  
Industrial Enterprises ◽  
Cost Of Production ◽  
The Cost

The data of calculating the actual cost of production are widely used in production management at industrial enterprises, to monitor compliance with the standard cost of production adopted by the enterprise, to identify ways to optimize labor costs and material resources. The level of cost depends on the activity of an industrial enterprise in a market economy: the amount of profitability, the economic efficiency of its activities. The choice of the method of cost accounting and calculating the cost of production depends on the specifics of the technology and organization of production, as well as the requirements of the efficiency of enterprise management. Studying the formation of accounting information when calculating the cost of production by type of product, comparing the level of costs with the revenue received makes it possible to determine the economic efficiency of production. The purpose of this study is to identify the problems of forming accounting information when calculating the cost of production for making decisions to reduce costs. The implementation of the research goal is facilitated by the use of methods of comparative analysis, synthesis, and graphical method for visualizing the results obtained. When considering the cost calculation, attention is paid to the fact that in market conditions there is a need for detailed cost accounting and calculation of the cost of production. If we take into account that in market conditions, prices for products are formed as demand increases, and demand is influenced by external factors, then we can only influence the costs based on the cost calculation. The basis for making effective management decisions will depend on how reliable and to what extent the accounting information is formed. Costs are the main constraint on the profit of industrial enterprises, since the main strategic goal of any enterprise is the mechanism for increasing profits. The ability to achieve this goal is limited by the following internal factors: the complexity of the cost grouping, technological processes, and the impact on product quality. It is necessary to improve the information system, which is based on the data of primary documents, document flow and the order of cost grouping. The proposed measures will contribute to strengthening the control function of the management and, as a result, effective cost management.

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