Zhul'kova Yu.N.Nizhny Novgorod State University of Architecture and Civil Engineering, Nizhny Novgorod, Russian Federation zhulkova@mail.ru
Importance The modern operation of enterprises, regardless of their size or sectoral affiliation, reveals the need for sound cost management when realizing development strategies. Dynamic development of market environment is the primary reason why managers apply new instruments to develop a coordinated strategy within each individual company or group of companies. Many years' experience of international companies shows that the use of strategic management accounting methods is fully justified. In this case, companies can solve a number of problems, including effective operation. A company's financial success depends, among other important things, on customer satisfaction with high quality of goods and works, and the level of production costs. The latter is relevant irrespective of existing economic conditions, as reduction of production cost is of particular importance either during increasing competition or in times of economic crisis. To achieve the primary goals of a company, it is reasonable, at different stages of production life cycle, to introduce instruments of strategic management accounting to complement traditional management methods. This will become a guarantee and a starting point for contemporary strategic management development at an enterprise. The use of target costing, a strategic management accounting tool, enables to reduce production cost based on customer needs, which are identified at early stages of project with the help of modern market technologies. Subsequently, this will result in mitigating the risk inherent in project implementation. The study demonstrates the possibility to adapt the described methods to the needs of construction companies, and describes their implementation on the case of construction products. It also shows the advantages of using the described instruments. Objectives The objective of the study is to determine a possibility and relevance of using strategic management accounting methods at enterprises producing and selling construction products. The primary goals of the study are as follows: to describe the role of strategic management in construction enterprises development; to evaluate the need for implementing strategic management accounting in companies; to demonstrate the practicability of using the strategic management accounting methods at the stage of construction product development. Methods To conduct the study, the author applied a comparative analysis, systematization, and the content analysis. Results The presented calculations proved the possibility and efficiency of practical implementation of target costing, which enables to identify the ways of reducing the cost of construction products. The results of the study may be useful for a wide range of readers interested in practical implementation of strategic management accounting tools in the construction sector. Conclusions and Relevance Strategic management accounting methods enable to ensure efficient operations of an enterprise, as the information provided within the framework of management accounting, is the primary source of determining competitive advantages of a company.
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