Methodology for a Process Approach to Cost Management at Manufacturing Enterprises

Aim. The author aims to develop an original methodology for a process approach to cost management at manufacturing enterprises. Its core idea is the possibility of increasing overall enterprise efficiency and reducing costs by using internal reserves identified as a result of business process optimization.Tasks. According to the author, a process approach to cost management is future-oriented and has not yet been properly developed — hence the goals of developing and improving the theoretical and methodological foundations of its implementation.Methods. The methodology for a process approach to cost management is based on the most effective (from the author’s perspective) elements of such methods as “ABC-costing”, “Value chain concept”, “Cost-drivers”, “Target-costing”, “Kaizen-costing” with the author’s additions.Results. The author’s methodology for a process approach to cost management with regard to manufacturing enterprises is presented in the form of a structural and logical scheme. Its elements allow the reader to understand which methods, means, principles, and techniques can be used for its introduction and implementation. The fundamental basis of the methodology for a process approach to cost management is the author’s vision and definitions of the “object” and “subject” of cost management. The conventional structure of the representation of elements in the methodology is supplemented by the following units: “The form of implementation and organization of a process approach to cost management” and “Periods”.Conclusions. A process approach to cost management combines several of the most effective methods of cost management and accounting, making it possible to bring the level of expenses of an enterprise down to a competitive level using the internal reserves of the enterprise.