Development of a methodology for sharing the enterprise total costs into the fixed and variable components in the cost-management tools’ improvement

Abstract

The problems associated with cost management become especially acute and urgent in modern competitive environment. These issues are much more relevant for the construction industry than for other industries, since the costs and expenses on the construction products are much higher than those of other industries. Cost management is an excellent tool for the development and justification of many diverse management decisions, which can be associated not only with reduction, costs optimization or product pricing, but also with the production program of the enterprise, and in some cases with the organizational structure of enterprise management. However, the current cost management tools are currently poorly adapted to the Russian conditions and the Russian mentality and practically are not adapted for construction. This is the relevance of the chosen research topic. The methodology developed by the author for sharing the enterprise total costs into fixed and variable components will make it possible to quickly and inexpensively obtain the initial data for the use of existing and non-adapted Western tools for domestic enterprises in modern market conditions. Also, any classification is the additional information that gives an opportunity to more thoroughly and accurately examine the selected object, which in our case is the cost.

Value added and business feasibility analysis of chili sauce products in Banggae District, Majene Regency

“…For the same reason, the depreciation rate per output unit may also be reduced if depreciation is charged depending on time, and not on production volume. As a result, the rate of variable costs per unit of production will be reduced due to its labor and depreciation components [4].…”