Vizgunov A.N.National Research University Higher School of Economics - Nizhny Novgorod, Nizhny Novgorod, Russian Federation vizgunovhse@yandex.ru
Importance One of the most progressive modern concepts of management is the activity-based management. Many Russian enterprises use the elements of activity-based management; however, its integrated implementation is subject to certain difficulties. The major problem is to accurately determine the cost of activities and resources associated with business processes. Traditionally, the activity-based costing (ABC) method serves for this purpose; nevertheless, it is not efficient for fast changing business processes. The time-driven activity-based costing (TD ABC) method is not practical either due to its limited scope of application. Objectives The purpose of the study is to develop techniques for detailed accounting for, and efficient analysis and control of the cost of activities and resources associated with business processes. Methods The offered methodology considers only the most important key costs. Key costs are the basis for building a model of accurate allocation of indirect costs related to business process implementation. The key cost data are also used to find ways to reduce costs and mitigate risks. Results We offer criteria to assign costs to the key cost category. The article presents conditions, under which it is possible to use the key costs as an information base for management decision-making. Furthermore, we define how to develop an ABC-model based on the key cost data, and how to efficiently analyze fast changing business processes. Relevance The work may be useful for managers and employees of enterprises, implementing a process-based approach to management.
Keywords: business process management, cost analysis, key costs, activity-based costing, time-driven activity-based costing
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