scholarly journals Cost management of a construction company based on functional cost analysis

2021 ◽  
Vol 274 ◽  
pp. 05003
Author(s):  
Olga Borovskikh ◽  
Alsu Evstafieva ◽  
Ludmila Marfina
Keyword(s):  
Cost Analysis ◽  
Cost Management ◽  
Practical Importance ◽  
Indirect Costs ◽  
Careful Analysis ◽  
Construction Company ◽  
Construction Companies ◽  
Pareto Curve ◽  
Abc Analysis ◽  
The Cost

In conditions of environmental instability and uncertainty, one of the factors for the effective functioning and development of a construction company is high-quality and continuous cost management. The cost management process is aimed at maximizing profits by increasing the efficiency of the use of all resources. It requires constant monitoring to make adjustments to the planned costs and their amounts. Cost management is impossible without careful analysis. Along with the traditional methods of cost management, it is advisable for construction companies to apply functional cost analysis, which is an effective tool for optimizing costs and the quality of production functions performance. The research studies a construction company. Particular attention in the study is paid to indirect costs due to an increase in their share in the structure of the construction products cost. Within the framework of the functional cost analysis, an ABC analysis was carried out and a Pareto curve was modelled. It allowed us to focus on the allocated cost areas and classify the processes into main, basic and supportive ones. The significance of the identified processes was determined using the paired comparisons method. The results obtained allow us to draw a conclusion about the correspondence of the share of cost items and their significance for the analyzed construction company. The research materials are of interest and practical importance for the CEOs of construction companies.

scholarly journals ЗАБЕЗПЕЧЕННЯ РЕЗУЛЬТАТИВНОСТІ ОБЛІКУ ТА АУДИТУ СИСТЕМИ УПРАВЛІННЯ ВИТРАТАМИ ПІДПРИЄМСТВ АЕРОКОСМІЧНОЇ ГАЛУЗІ

2020 ◽  
pp. 58-64
Author(s):  
Г. С. Ліхоносова ◽  
В. Г. Бондаренко
Keyword(s):  
Management System ◽  
Cost Management ◽  
Practical Importance ◽  
Aerospace Industry ◽  
Cost Accounting ◽  
Production Costs ◽  
Practical Significance ◽  
Main Hypothesis ◽  
Cost Management System ◽  
The Cost

The article considers the organization of the cost management system as an object of accounting, the factors that affect the cost and effectiveness of methods of audits of costs for the production of aerospace products. The purpose of the article is to present the issues of accounting and analytical support and audit of the cost management system in the aerospace industry with a focus on the features of accounting and audit of the cost system in the aerospace industry. The methodological basis of the study is a number of scientific methods, including methods of empirical research - comparison, methods of theoretical knowledge – formalization and general research methods - analysis, synthesis and grouping. The main hypothesis of the study was the assumption that the accounting and analytical support of cost management system is influenced by various factors, including: type of production, features of its organization, product range, enterprise management structure, organization of accounting by places and centers of responsibility, cost accounting methods and costing products and the level of automation of accounting work. Presenting main material. It was found that cost accounting occupies a decisive place in accounting and analytical support and audit procedures. The formation of accounting and analytical support of the cost management system in the aerospace industry largely depends on the factors influencing the formation of the cost and the organization of the analysis of the component costs of enterprises. The organization of synthetic and analytical accounting of production costs should ensure: reflection of all performed operations on costs, appropriate distribution of costs by objects of accounting and calculation objects, determination of production costs, timely receipt of necessary information for management purposes. The originality and practical significance of the study is confirmed by the analysis of the possibility of auditing the enterprises of the aerospace industry. The proposed method of accounting and costing is of practical importance and can be used for other enterprises in the aerospace industry. Conclusions and prospects for further research. The method of cost accounting presented in the article is of practical importance for the enterprises of the aerospace industry. Further research will be aimed at improving the accounting and analytical support and algorithms for audits of the cost management system in the aerospace industry

Modern tools for deep cost analysis in the cost management system in the inter-organizational relations of agricultural formations

2021 ◽  
pp. 6-14
Author(s):  
L. I. Khoruzhy ◽  
Y. N. Katkov ◽  
Anastasiya Alekseevna Romanova
Keyword(s):  
Theoretical Analysis ◽  
Cost Analysis ◽  
Management System ◽  
Business Processes ◽  
Cost Management ◽  
Management Accounting ◽  
Organizational Relations ◽  
The Cost ◽  
Organizational Cooperation

The article, based on the theoretical analysis and study of the forms of setting up management accounting of inter-organizational agricultural formations, presents the place and role of digital doubles as tools for implementing the system of management accounting of interorganizational interaction of agricultural partner companies. The advantages of using digital doubles in agricultural companies, which have a significant impact on the inter-organizational cooperation of agricultural companies, are revealed. The complexity of the implementation and use of modern management accounting methods in identifying deviations in business processes is revealed.

scholarly journals APPLICATION OF AHP FOR SUPPLIER SELECTION IN CONSTRUCTION COMPANIES

2020 ◽  
Vol 1 (6) ◽  
pp. 921-933
Author(s):  
Rosalendro Eddy Nugroho ◽  
Maria Sherly Iskandar
Keyword(s):  
Supplier Selection ◽  
Selection Process ◽  
Careful Analysis ◽  
Procurement Process ◽  
Construction Company ◽  
Construction Companies ◽  
Decision Alternative ◽  
The Many ◽  
Hierarchy Process ◽  
Selection Of

The procurement process is an important process in supply chain management as it is the spearhead of the entire process. In carrying out the procurement process, there are often problems with the supplier selection activities. This is because the supplier selection process spends a lot of time and resources collecting data and conducting careful analysis that will affect the entire decision alternative. In making decisions relating to the many criteria and the number of alternative suppliers, it requires an effective and uncomplex assessment technique, but it provides accurate results. A mapping and determination of supplier selection criteria is required as a basis for valuation to obtain a qualified supplier. This study focused on PT. XYZ is a construction company in South Tangerang. Analytical Hierarchy Process (AHP) is used to determine the best supplier, there are 4 variables that are reference in conducting the selection of suppliers, such as: cost, quality, delivery, and service. The result in the selection of the supplier company is cost with a weight of 0.268, quality with a weight of 0.290, delivery with a weighting of 0.248, and the service with a weight of 0.194 where conclusions obtained from the analysis of the selection of the best suppliers and in accordance with the criteria, namely PT. CBL for iron suppliers, PT.SAS for cement suppliers, and PT. Citra BSD for suppliers of natural materials

scholarly journals PROSPECTS OF USING THE ABC METHOD IN ECONOMIC PRACTICE OF ENTERPRISES

2021 ◽  
pp. 170-176
Author(s):  
Ihor Yaskal ◽  
Oksana Yaskal ◽  
Igor Stasiuk
Keyword(s):  
Unit Cost ◽  
Indirect Costs ◽  
Pricing Policy ◽  
Market Pricing ◽  
Traditional System ◽  
Method Of Calculation ◽  
Construction Company ◽  
Policy Application ◽  
Abc Method ◽  
The Cost

Introduction. The traditional system of calculating the cost of production by the complete expenses has performed an accounting function but carries overhead (indirect) costs to the cost of certain products only in proportion to the volume of its outputs. That is why it has a number of shortcomings, which are particularly acute in market conditions: it does not provide for the distribution of costs by functions and actions, does not provide reliable calculation, the objectivity of assessment and market pricing. Results. It has been calculated and compared the cost of the main products of the enterprise in the research (on the example of LLC "Design and Construction Company" RIKA") by the method of calculation by the complete expenses and the method of ABC. It has been established that when calculating by the complete expenses there is an insufficient share of overhead costs which refers to the cost of products produced in smaller quantities and vice versa. It has been determined that using the method of calculating the cost by the complete expenses leads to unjustified overstatement of the share of overhead costs in the cost of products with a significant share of direct labour and material costs ( namely: construction of facilities and production of concrete products) and the share of overhead costs in the cost of products with a small number of direct labour costs and materials is insignificant (namely: the production of mixtures and the development of documentation). It has been calculated relative savings of unit cost (construction of facilities, production of concrete products) from the application of the ABC method. It has been also determined that it is advisable to change the approach to the pricing of such products as the production of mixtures and the development of documentation, as their cost is higher than the accounting. This indicates the unprofitable price for the company of these products and the need for management decisions or the abandonment of these products or a change in pricing policy. Application. The application of the ABC method in the distribution of enterprise costs could identify new benchmarks in product cost management, provided that existing accounting is adapted to this method.

Modern tools of deep analysis in the system of cost management in inter-organizational relations of agricultural formations

2021 ◽  
pp. 6-15
Author(s):  
Lyudmila Ivanovna Khoruzhy ◽  
Yury Nikolaevich Katkov ◽  
Anastasiya Alekseevna Romanova
Keyword(s):  
Theoretical Analysis ◽  
Cost Analysis ◽  
Simulation Modeling ◽  
Business Processes ◽  
Cost Management ◽  
Interorganizational Cooperation ◽  
Modern Methods ◽  
Organizational Relations ◽  
The Cost

The article, based on the theoretical analysis and the study of accounting practices, presents the place and role of tools for deep cost analysis in the cost management system of inter-organizational interaction of partners. The features of agriculture that have a significant impact on the interorganizational cooperation of agricultural companies are revealed. The advantages of the introduction and use of modern methods of cost management, including simulation modeling in identifying deviations in business processes, are revealed.

Cloud Computing and Its Implications for Construction IT

2021 ◽  
pp. 170-192
Keyword(s):  
Information Technology ◽  
Cloud Computing ◽  
Mobile Network ◽  
The Internet ◽  
It Infrastructure ◽  
Construction Company ◽  
Construction Companies ◽  
Increase Productivity ◽  
Iot Platforms ◽  
The Cost

By nature, a construction company needs to have data and information readily available at any stage and at any location. Given the often unstructured and fluid nature of construction activities, construction personnel face the challenge of collecting as well as collating data while on the move and at work under field conditions. With the advent of cloud computing and the rapidly increasing reach of the internet through wireless and mobile network carriers, construction companies are increasingly beginning to explore the power of information technology through cloud and IoT platforms. While at one stage, the cost of maintaining IT infrastructure was expensive for construction companies and engineering firms of all sizes, the rise of cloud computing has enabled to rationalize costs and investments while retaining high levels of productivity and service. This chapter discusses the various options that construction companies now have to choose from to streamline operations and increase productivity.

scholarly journals Rehabilitation cost share and cost analysis of traumatic hand injuries: Our single-center results

2021 ◽  
Vol 67 (3) ◽  
pp. 308-314
Author(s):  
Merih Özgen ◽  
Ayşe Merve Aydoğan ◽  
Ali Uygur ◽  
Onur Armağan ◽  
Funda Berkan ◽  
...  
Keyword(s):  
Cost Analysis ◽  
Direct Cost ◽  
Injury Severity ◽  
Indirect Costs ◽  
Hand Injury ◽  
Economic Policies ◽  
Wrist Injuries ◽  
Total Cost ◽  
The Mean ◽  
The Cost

Objectives: This study aims to evaluate the cost expenses and rehabilitation share of hand and/or wrist injuries and to contribute to the development of health and economic policies. Patients and methods: A total of 59 patients (55 males, 4 females; mean age: 39.1±11.3 years; range, 20 to 64 years) who presented with hand and/or wrist injuries between January 2015 and December 2017 were retrospectively reviewed. Demographic data, hand injury information, and the Modified Hand Injury Severity Scores (MHISS) were retrieved from the patient file system. The cost analysis with direct and indirect costs was performed. Results: According to the MHISS, 27.1% of patients had a minor injury, 23.7% had a moderate injury, 18.6% had a severe injury, and 30.5% had a major injury. The mean direct cost of the patients was $726.00±641.87 and the total cost of the indirect cost was $2,776.93±1,619.00. The mean day-off time was 125±68.62 days. Indirect costs accounted for 79% of the total cost. The mean cost of rehabilitation was $150.18±86.88. Rehabilitation costs accounted for 4% of the total cost. There was a positive correlation between the MHISS and direct, indirect and total cost, but not between the MHISS and rehabilitation cost. Conclusion: The proportion of the share allocated to rehabilitation expenditures, which is the subunit of direct cost, is low and not related to the injury severity. The data obtained from the study contributed to the creation of evidence-based health and economic policies. We believe that these data also contribute to the planning of rehabilitation services according to the severity of injury which would improve the quality of life and return to work.

scholarly journals Analisis Penerapan Cost Recovery Method Dan Percentage Of Completion Method Berdasarkan PSAK 34 Terhadap Laba Kotor Perusahaan PT Mitra Menara Mandiri

2018 ◽  
Vol 6 (2) ◽  
pp. 104-109
Author(s):  
Jhonatan Andres ◽  
Robert Pius Pardede
Keyword(s):  
Cost Recovery ◽  
Recovery Method ◽  
Generally Accepted Accounting Principles ◽  
Accounts Receivable ◽  
Construction Company ◽  
Construction Companies ◽  
Accounting Principles ◽  
Completion Process ◽  
The Cost ◽  
Selection Of

Economic in Indonesia is growing rapidly. One of the supporting factors economic development in Indonesia is the construction field which is growing from year to year. The construction completion process carried out by a construction company has a different period of time depending on the request of the employer. The construction companies measure their gross profit by using the percentage settlement method or the recovered cost method depends on the contract. In general, the contractor company is still wrong in using these methods so that the company does not know clearly the gross profit obtained.The purpose of this study was to determine the recognition of gross profit by applying the recoverable cost method and the percentage of completion method of PT Mitra Menara Mandiri and knowing the factors that influence the selection of methods in the recognition of gross profit using the percentage settlement method and the recoverable cost method at PT Mitra Menara Mandiri.The results of the analysis of the implementation of the cost recovery method and the percentage settlement method of the company's gross profit at PT Mitra Menara Mandiri are still not in accordance with generally accepted accounting principles in terms of determining the recognition of the revenue applied. There is a weakness in the company in recording journals, such as the company does not record business journals when receiving a job and the company does not record if the company conducts billing terms. Therefore, the company should at the time of conducting the billing the company records the journal and records the accounts receivable journal at the time of receiving the job to avoid losing data at the time PT Mitra Menara Mandiri receives cash on the receivables that have been billed.

scholarly journals AHP-Systems Thinking Analyses for Kaizen Costing Implementation in the Construction Industry

Buildings ◽  
2020 ◽  
Vol 10 (12) ◽  
pp. 230
Author(s):  
Temitope Omotayo ◽  
Bankole Awuzie ◽  
Temitope Egbelakin ◽  
Lovelin Obi ◽  
Mercy Ogunnusi
Keyword(s):  
Construction Industry ◽  
Systems Thinking ◽  
Cost Management ◽  
Management Strategies ◽  
Analytic Hierarchy ◽  
Cost Overruns ◽  
Construction Companies ◽  
Cost Planning ◽  
Effective Cost ◽  
The Cost

The incessant reportage of cost overruns and abandoned projects in contemporary literature have accentuated the need for a re-examination of the nature of the cost management strategies deployed to these projects. This study explores the potential of kaizen costing strategy to engender effective cost management within construction project delivery systems in developing countries. Data collected during this study were analysed using the analytic hierarchy process (AHP) and systems thinking approaches to determine the criticality of the factors influencing the effective implementation of kaizen costing. Seven (7) archetypes leading to final causal loop diagram identified the incorporation of the plan–do–check–act approach to project and cost planning, the budgeting system of the construction companies, overhead cost reduction during construction and the overall procurement process. Executing these archetypes will potentially reduce high overhead costs, project cost and time overruns, as well as enhance construction industry sector growth policies and construction organisation corporate governance.

scholarly journals Total production costs of construction enterprise features of distribution

2021 ◽  
Vol 2 (47) ◽  
pp. 86-93
Author(s):  
L. Husarova ◽  
O. Rubtsova ◽  
D.S. Olenich
Keyword(s):  
Indirect Costs ◽  
Production Costs ◽  
Total Production ◽  
Construction Enterprise ◽  
Construction Company ◽  
Construction Enterprises ◽  
Formal Procedure ◽  
The Cost ◽  
Cost Of Construction

The article considers the peculiarities of the distribution of total production costs, taking into account the specifics of the construction enterprises of Ukraine. It is established that the accounting processes are regulated by UAS 16 "Costs" and UAS 18 "Construction contracts", but in practice the implementation of  the distribution of overhead costs becomes a formal procedure due to insufficient definition and presentation in the current regulatory framework of the classification of costs. It is noted that in construction there are three types of cost of construction and installation work: estimated, which includes regulatory costs due to estimated norms and current prices; planned, which includes the cost of construction and installation work and is determined on the basis of technical and economic calculations using economically justified norms and standards of costs for construction and installation work under normal capacity of the construction company and the actual, including the actual costs of the construction company, incurred during construction and installation work.  This feature leads to the possibility of significant differences in the actual and estimated cost of construction. The schematic connection of the classification of costs by economic elements and costing items in calculating the cost of construction and installation work is given. It is determined that the improvement of accounting for total production costs should be an element of strategic management in the construction company as there is a tendency to increase in recent years. Carrying out the correct distribution of  total production costs requires further development of regulatory and methodological framework, firstly, by improving the classification of indirect costs with the development of criteria for determining their fixed and variable part, and secondly, developing criteria for selecting the optimal distribution base of construction enterprises. It is considered promising to use information technology for more accurate calculations and improve the working conditions of analysts in the distribution of  total production costs.

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