Building cost management strategy at industrial enterprise: theoretical and methodical aspects

  • N. Y. Radionova Kyiv National University for Technology and Design
Keywords: industrial enterprise, cost management, strategy of management, production output, fixed costs, variable costs


Cost management is a central issue in business planning at industrial enterprises, because it contributes to business performance, financial and economic stability of an industrial enterprise at the market. This raises the importance of studies devoted to theoretical and methodic aspects of cost management strategy at industrial enterprises. The article aims to provide theoretical substantiation to methodical aspects of cost management strategy at an industrial enterprise.

Cost management can be defined as a complex of efforts related with the formation and control of costs in course of business operation, aiming at optimization of costs in all the subsystems of an industrial enterprise.

Subject to analysis is a set of strategic tasks to be addressed by an industrial enterprise; links between goals and basic components of cost management strategy at an industrial enterprise; correlations between costs, output and profit rates, effects of the ratio of fixed costs to variable costs for the break-even position; the algorithm for calculating the unit profitability. Product features with commercialization effects have essential role in selecting a cost management strategy; they can be assessed by target costing, which detailed review is given. The study demonstrates that a cost management strategy at an industrial enterprise, once properly selected, will be an important factor for its performance and market competitiveness.


Download data is not yet available.


1. Aaker D. (2007). Strategicheskoe ryinochnoe upravlenie [Strategic market management]. Translated from English. S.-Petersburg: Piter [in Russian].

2. Adyrova T. I. (2012). Systema upravlinnia vytratamy – target-costing na mashynobudivnykh pidpryiemstvakh. [The cost management system – target-costing at engineering enterprises]. Ekonomika ta derzhava – The economy and the state, 7, 82–84 [in Ukrainian].

3. Denysenko M. P., Khaustova Ye. B. (2017). Analiz intelektualnoho kapitalu ta yoho skladovykh za pokaznykamy modyfikovanoho balansu [Analysis of the intellectual capital and its components by data from the modified balance]. Problemy innovatsiino-investytsiinoho rozvytku – Problems of the innovation and investment driven development,4. 12–20 [in Ukrainian].

4. Doshchych H. A. Doslidzhennia aktualnykh problem upravlinnia vytratamy pidpryiem-stva [Studying important problems in cost management of an enterprises]. Vinnytsia Institute of Trade and Economics [Electronic resources]. URL: http://www.rusnauka. com/ 29_DWS_2012/Economics/ 10_120778.doc.htm [in Ukrainian].

5. Ilnytska-Hykavchuk H. Ya., Shchur O. M. (2012). Udoskonalennia upravlinnia vytratamy pidpryiemstva [Improving cost management at an enterpise]. Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky – Bulletin of Khmelnitsk National University. Economics, 6(1), 94–96 [in Ukrainian].

6. Kozachenko H. V., Pohorelov Yu. S., Makukhin H. A. (2007). Upravlinnia zatratamy pidpryiemstva [Cost management at an enterpise]. Kyiv: Libra [in Ukrainian].

7. Skrypnyk M. I. Radionova N. Y., Matiukha M. M. (2015). Implementatsiia stratehichnoho upravlinskoho obliku na promyslovykh pidpryiemstvakh [Implementing strategic management accounting at industrial enterprises]. Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu. Seriia: Bukh. oblik, kontrol i analiz – Problems of theory and methodology of accounting, control and analysis. Series: Accounting, control and analysis, 2(32), 330–342 [in Ukrainian].

Abstract views: 198
PDF Downloads: 92
How to Cite
Radionova, N. Y. (2018). Building cost management strategy at industrial enterprise: theoretical and methodical aspects. Scientific Bulletin of the National Academy of Statistics, Accounting and Audit, (1-2), 182-187.