Published: Jul 31, 2019


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.

How to Cite

Radionova, N., Skrypnyk, M., & Voronkova, T. (2019). DUAL NATURE OF INDUSTRIAL ENTERPRISE COST MANAGEMENT SYSTEM. Baltic Journal of Economic Studies, 5(2), 184-190. https://doi.org/10.30525/2256-0742/2019-5-2-184-190
Article views: 1252 | PDF Downloads: 568



enterprise management system, cost management system, cost optimization, industrial enterprise, value chain


Balan, A. A. (2014). Systema upravlinnya vytratamy na promyslovomu pidpryyemstvi [Cost management system in industrial enterprises]. Ekonomika: realiyi chasu, 3(13), 43–49.

Harkavenko, S. S. (2007). Marketynh [Marketing]. Kyiv: Libra. (in Ukrainian)

Deriy, V. A. (2015). Ekonomichni pokaznyky vytrat pidpryyemstva ta sobivartosti produktsiyi v obliku, statystytsi y analizi [Economic Indicators of the Expenditures of Enterprise and the Costs of Production in Accounting, Statistics and Analysis]. Oblik i finansy, 2, 15–21.

Kaplan, R. S. (1998). Cost and Effect: Using Integrated Cost System to Drive Profitability and Performance. President and Fellows of Harvard College, USA.

Kozak, V. H. (2009). Vyznachennya ponyattya «vytraty» ta yikh otsinka [Definition of the "costs" concept and its estimation]. Reformuvannya ekonomiky Ukrayiny: stan ta perspektyvy : zb. mater. IV Mizhnar. nauk.-prakt. konf. (Ukrainian, Kyiv, November 26–27).

Kozachenko, H. V., Pohorelov, Yu. S., Makukhin, H. A. (2007). Upravlinnya zatratamy pidpryyemstva [Costs management of the enterprise]. Kyiv: Libra. (in Ukrainian)

Porter, M. E. (1990). The Competitive Advantage of Nations. New York: Free Press.

Skrypnyk, M. I. (2011). Orhanizatsiya obliku vytrat u rozrizi tsentriv vytrat ta tsentriv vidpovidalnosti [Organization of cost accounting in terms of cost centers and responsibility centers]. Oblik i finansy APK. Kyiv: TOV YuF «Yur-Ahro-Vest», 1, 46–49.

Taler, T. V. (2006). Poshuk shlyakhiv znyzhennya sobivartosti produktsiyi promyslovoho pidpryyemstva [Searching the ways to reduce the production’s cost of industrial enterprise]. Derzhava ta rehiony, 5, 415–417.

Cherep, A. V. (2005). Mozhlyvosti zastosuvannya novykh orhanizatsiynykh struktur upravlinnya z metoyu znyzhennya sobivartosti produktsiyi [Possibilities of application the new organizational structures of management in order to reduce the production’s cost]. Visnyk Natsionalnoyi akademiyi derzhavnoho upravlinnya pry Prezydentovi Ukrayiny, 2, 208–215.

Chumachenko, M. H. (2008). Dyskusiyni problemy obliku vytrat i kalkulyuvannya sobivartosti produktsiyi [Discussion problems of costs accounting and the products cost calculation]. Bukhhalterskyy oblik i audit, 10, 3–7.

Yudina, M. I. (2013). Analiz kryteriyiv ta napryamiv zmenshennya vytrat vyrobnytstva u sobivartosti produktsiyi [Analysis of criteria and ways of production expenditure reduction in product cost]. Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky, 4(2), 98–102.