METHODICAL APPROACH TO MANAGEMENT OF EXPENSES OF THE INDUSTRIAL ENTERPRISE

The article analyzes the problem of formation of a single, effective and universal methodological approach to cost management of an industrial enterprise as an important aspect for its success in the competitive domestic markets of Ukraine and in the conduct of foreign economic activity in the world market. The necessity of a clear understanding of the economic essence of the category "costs" is revealed and it is determined that the category "costs" is all the resources and factors of production that require accounting, expressed in monetary form, as well as used in the process of economic activity to obtain a financial result and necessary for its analysis, management decision – making, and is an internal price-forming factor. We systematize the components of the concept of "expenses". The approaches to the concept of the economic essence of costs in General covers all spheres of activity and summarizes the types of costs inherent in the enterprises of the industrial complex. The proposed definition of the category "costs" will improve the efficiency of their management; strengthen the control of their consumption; identify reserves to improve performance; improve the organization and methodology of cost accounting at the industrial enterprise. Negative factors of influence on financial and economic activity of industrial enterprises are also allocated and it is proved that efficiency of actions for reduction of expenses depends on degree of their coordination with tasks of activity and development of the enterprise. Built a mechanism for the distribution functions of the system management costs of industrial enterprises and revealed that the distribution of functions and objectives of the cost management system must be implemented in concert with management functions of an industrial enterprise. It is concluded that the cost management system of an industrial enterprise is a complex of related elements and relations in the enterprise management system, which, due to the rational use of its resources, ensure its stable functioning. Each individual element performs the corresponding functions and tasks of the cost management system. The effectiveness of the functions and tasks of the cost management system depends on the degree of feedback from the control of the cost management activities of the enterprise to its planning.

Methods of cost management at the enterprise

In the article on the basis of semantic analysis (the terms "costs", "management", "cost management", "enterprise", "cost management in the enterprise", "method") and determining the place of cost management methods in the cost management system at the enterprise such management methods. The chronology of development of methods of management of expenses at the enterprise and their characteristics is resulted. The classification of cost management methods of business entities is developed and proposed separately. The crisis of the national economy, which covered a period of twelve years, significantly changed the approaches of domestic entrepreneurs to management. Problems with sales, unprofitable activities required a focus on crisis management (crisis financial management), loss control, maintaining a stable level of profit, which was achieved primarily through cost management. The purpose of the article – based on a critical assessment of scientific developments in the field of cost management to determine the essence, characterize and develop a classification of cost management methods in the enterprise. The theoretical and methodological basis of the study were the works of domestic and foreign scientists, leading scientists and practitioners in the field of cost management in the enterprise. General theoretical methods were used in the research process. The system method was used in the study of theoretical aspects in the field of cost management. The method of analysis was used in the study of the most popular methods of cost management and their chronology of development. With the help of abstract-logical method – substantiated and presented conclusions and proposals for improving methods of cost management in Ukrainian enterprises. The article defines the essence of cost management methods based on semantic analysis of the term "cost management method" using a number of economic terms to form its structure, as well as determining the place of cost management methods in the cost management system in modern enterprise. A brief description of the most common methods of cost management in the financial and economic activities of economic entities, indicating their positive and negative sides. Based on the above characteristics, a classification of cost management methods was developed and proposed.

Improved GA based power and cost management system in a grid-associated PV-wind system

Renewable hybrids play an essential part in assisting India with quickening the decarbonisation of power production and lowering power production expense in the medium term. PV and wind energy are complementary to each other, making the system to generate electricity almost throughout the year. In this paper, a grid-associated PV-wind energy system tied with a battery is analysed. PV, wind, grid and battery are the sources to be effectively scheduled for uninterrupted power and cost minimisation. Energy management controllers use optimisation strategies for effective utilisation of sources and cost minimisation. The methodologies are detailed as optimisation problems. Limiting the household energy cost is considered as objective, and the delivery ratio of power offered to the grid and utilised locally is treated as the optimisation variable. In this paper, an improved genetic algorithm is proposed to solve the formulated nonlinear optimisation problems. The time-of-use tariff is becoming popular in India; therefore, this article analyses the improved genetic algorithm based intelligent power and cost management system under time-of-use tariff. Using MATLAB, the proposed approach's performance is presented with the comparative analysis of conventional self-made for self-consumed and rest for sale mode and genetic algorithm-based energy management controller.

Cost management in agribusiness organizations

The article presents the results of the development and testing of cost management methods in agricultural organizations. The purpose of the activity of any organization that has set itself the task of extracting profit is its growth and increasing the efficiency of its activities. As a rule, all organizations strive to maximize their profits while minimizing the costs incurred. In modern economic conditions, such an approach is possible only with a properly constructed effective cost management system. Rational use of available resources by organizations of the agro-industrial complex with proper cost management will allow organizations to be competitive in the market and carry out their activities in the foreseeable future. The subject of the study is the cost management accounting system, the object of the organization of the agro-industrial complex of the Stavropol Territory. The information base was the forms of specialized reporting of agricultural organizations of the Stavropol Territory. The scientific novelty of the research consists in the development of a methodology for the cost management system in the agro-industrial complex organizations of the Stavropol Territory.

Web based cost management tool prototype development using temporal-activity based costing (Temporal-ABC)

The cost management system is a powerful tool for managers to understand manufacturing plant performance. It is essential for any organization to develop a cost management system to estimate the product cost and to account actual cost spent for the product manufacturing. The Activity Based Costing (ABC) system has recently attracted the attention of many companies and is considered to provide better information about the cost pattern and the relationship between resources and activities. However, a survey of earlier research reveals that there are several difficulties to estimate the true product cost due to selection of overhead drivers to activities. To overcome these difficulties Temporal-ABC has been developed by Dr. K.D. Tham. In the first part of the report, costing system implementation issues are studied through real-time case studies. Then, research has been conducted and web-based proptotype application is developed using Temporal-ABC through collaboration with a world-class electronics industry - Celestica Inc. Toronto, Canada. The developed prototype demonstrates the application of Temporal-ABC for cost estimation at Celestica.