MODERN APPROACHES TO GOVERNANCE EXPENDITURE OF CONSTRUCTION ENTERPRISES

Main Article Content

Оlena YEREMIAN
Ludmila BOYKO

Abstract

Introduction. Construction, as an industry, is one of the highest priorities in the economy of any country. In recent years, there has been a clear upward trend in the volume of housing construction compared to the previous decade. This significantly intensifies not only the development of modern construction technologies, but also requires new effective methods of construction management, aimed at reducing the cost of housing, reducing material, labor and financial costs in this area. Accordingly, the economic and social importance of accounting and analytical information on the cost of housing construction, commissioning of living space, ensuring the implementation of measures to reduce the cost of construction works.

Purpose. The purpose of the study is to substantiate modern approaches to the cost management of construction companies based on the study of domestic and foreign experience, identify their shortcomings and advantages in practical application.

Results. The features of cost accounting and costing of products of construction industry enterprises are investigated in the article. The objects of calculation of the construction subcontracted enterprise are defined, the essence and the procedure of using the non-contractual method of costing in construction are considered. It has been found that cost accounting can be performed by several methods - sets of techniques and operations of practical or theoretical knowledge of reality, which are subordinated to the solution of a specific task. Therefore, the method is only a means to an end.

However, world practice shows that the main means of building effective enterprise management is a cost management system. In the paper it is proved that it is necessary to distinguish between the terms "accounting methods" and "management methods". In order to quickly manage the costs of a construction company, the possibility of using the technique of displaying operations on the systems of "direct-costing", "standard-costing", "Absorption-costing" was explored. A number of difficulties have been identified that hinder cost management in the current practice of domestic enterprises and it is proved that the implementation of cost management functions is carried out by various methods, which can be classified as "management methods".

Therefore, the paper discusses in more detail the application of modern methods of cost management in construction enterprises, namely: "target-costing", "kaisen-costing", "SVR-analysis", "cost-keeling", "benchmarking of costs", "LSS analysis, their advantages and disadvantages are identified. The basic criteria according to which it is expedient to apply one or another method of cost management, in order to choose an effective method of cost management in a construction company are proposed.

Originality. Research essence of methods of accounting of expenses of the construction enterprise, their purpose and application. Industry specific construction features and calculation objects in construction have been identified. The modern methods of enterprise cost management from the point of view of practical use are analyzed, their advantages and disadvantages are revealed and the necessity of individual approach to the choice of systems of cost management of construction enterprises is determined.

Conclusion. There are a number of traditional and modern methods that aim to optimize costs. But it is not always advisable to use them in its purest form, because the best combination of traditional and modern methods of cost optimization, depending on the situation, can give better results in success. Here are the features of the enterprise's activity, its organizational structure, priority areas of development and goals for choosing the optimal method of cost management. This requires further in-depth study.

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References

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