Resource and cost management

Educational lecture notes contains the fundamentals of a general theory of resource and cost management, classification of costs for decision-making, methods of constructing cost functions of the enterprise, analysis of the relationship between costs, volume and profits, the methods and systems of cost calculation, principles of cost management system. Designed for students directions 073 «Management» and 076 «Entrepreneurship, trade and exchange activity»

Production cost management methodology

Production cost management is one of the most crucial factor of a successful company, in this paper I show a methodology how can we track variable costs, what kind of analytical tool can we have if we want to understand the variances of the production cost versus different baselines. In this methodology the reasons of the variances can be caused by some external circumstances, like inflation and due to some operational issue, like variable cost productivity. This methodology can help to understand key drivers of cost differences, and can help to measure the efficiency of manufacturing function within the company in case of functional company structure, especially at mass-production processes

THE CRISIS AND THE COST MANAGEMENT

The aim of the present study is the analysis of the phenomenon of contemporary crisisand its unfavourable effects upon the global economy, in general, and the developing countries, inparticular. It also has in view the most appropriate decisions that the management of an entityshould take under recession conditions. The reduction of prices becomes a priority for the entities,and the first anti-crisis measure in the present economic context. More attention should be paid tothe reduction of fixed and variable costs, taking into account the aim of maintaining theprofitability and financial equilibrium into an instable and unpredictable business environment.economic crisis, reduction of fixed and variable costs, the descending spiral of demand, sub-activity cost.

ACTIVITY BASED COSTING FOR BETTER COST MANAGEMENT

Implementing change in management, successfully and profitably, is the greatest challenge for modern enterprises. Innovation in strategies, marketing performance, role of competition, change in technology, change in customer needs, management initiatives are all facts of life in the global environment today. Cost management works with its customer to manage change more profitably. Activity-Based Costing (ABC) is a new methodology of product costing which measures the cost of products more accurately. Overhead allocation is much more sophisticated under this system. This paper attempts to highlight the need, importance and methodology of ABC for better Cost Management in modern enterprises.Cost management; Cost and activity drivers; Activity based costing (ABC); ABC implementation; ABC applications

Optimal Power Cost Management Using Stored Energy in Data Centers

Since the electricity bill of a data center constitutes a significant portion of its overall operational costs, reducing this has become important. We investigate cost reduction opportunities that arise by the use of uninterrupted power supply (UPS) units as energy storage devices. This represents a deviation from the usual use of these devices as mere transitional fail-over mechanisms between utility and captive sources such as diesel generators. We consider the problem of opportunistically using these devices to reduce the time average electric utility bill in a data center. Using the technique of Lyapunov optimization, we develop an online control algorithm that can optimally exploit these devices to minimize the time average cost. This algorithm operates without any knowledge of the statistics of the workload or electricity cost processes, making it attractive in the presence of workload and pricing uncertainties. An interesting feature of our algorithm is that its deviation from optimality reduces as the storage capacity is increased. Our work opens up a new area in data center power management.Comment: Full version of Sigmetrics 2011 pape

Secure Cloud Communication for Effective Cost Management System through MSBE

In Cloud Computing Architecture, Brokers are responsible to provide services to the end users. An Effective Cost Management System (ECMS) which works over Secure Cloud Communication Paradigm (SCCP) helps in finding a communication link with overall minimum cost of links. We propose an improved Broker Cloud Communication Paradigm (BCCP) with integration of security issues. Two algorithms are included, first is Secure Optimized Route Cost Finder (S-ORCF) to find optimum route between broker and cloud on the behalf of cost factor and second is Secure Optimized Route Management (S-ORM) to maintain optimum route. These algorithms proposed with cryptographic integrity of the secure route discovery process in efficient routing approaches between broker and cloud. There is lack in Dynamic Source Routing Approach to verify whether any intermediate node has been deleted, inserted or modified with no valid authentication. We use symmetric cryptographic primitives, which is made possible due to multisource broadcast encryption scheme. This paper outlines the use of secure route discovery protocol (SRDP)that employs such a security paradigm in cloud computing.Comment: 12 pages, 3 figures, International Journal on Cloud Computing: Services and Architecture(IJCCSA),Vol.2, No.3, June 201

Asset approach to IT cost management in industrial companies

The article introduces the authors’ estimation method for measuring the current level of information technologies in companies by four aspects (hardware, software, IT services, and telecommunication equipment) using the proposed original indicators. On the example of 50 sample Russian industrial companies the authors have built and tested an econometric model, which allows to measure how IT costs are affected by such factors as: the current level of IT development, net profit value, number of employees, general wages, salaries of IT specialists, percentage of qualified workers.IT management, IT development, IT cost management, industrial companies., Industrial Organization, Research and Development/Tech Change/Emerging Technologies, M15,

Target Cost Management Strategy

Target cost management (TCM) is an innovation of Japanese management accounting system and by common sense has been considered with great interest by practitioners. Nowadays, TCM related dissertations, papers, articles are widely being published in special journals both in North America and Europe; this may explain why seminars and workshops about TCM are so frequent. Even in the academicians' seminars and other meetings of research organizations, TCM related articles have a high probability to be accepted and reported. Last year for example, the American Accounting Association's seminar held in Boston about "Japanese cost management" was focused on the formulation of TCM (Okano-Shimizu, 1994; Kato, 1995). The above situation shows that the attention put on TCM is very different from that one put on JIT - "Japanese production system" - in the 1980s. So far, there were debates concerning the a priori that "The competitiveness of Japanese industries" is the outcome of the management system excellence. With many problems facing Japanese industries recently, the originality in the research and development system prior to the introduction of a new product becomes a point of great importance. Nowadays' fiery competition is likely to speed up the TCM system. Nevertheless, many of the published cases about TCM system have been made in special journals. Academic journal publications are few in comparison. Academic researches about TCM are now in the embryonic stage. In the light of that situation, this paper seeks to examine the importance of the relationship between strategy, organization, and TCM. Three directions of TCM are also presented, as well as the intertwines between Product Manager Allowance, ABC/ABM. Then future TCM research orientation is made