Matiukh A. Chairman of the Board of the Private Joint-Stock Company (PJSC) «Khmilnyk clothes factory “Lileia”», Ukraine; e-mail: lileya-bux@ukr.net CRITERIAL APPROACH TO ANALYSIS OF THE COST MANAGEMENT SYSTEM OF BUSINESS STRUCTURES

Radionova N. Doctor of Economics, Associate Professor, Professor of the Department of Accounting and Audit, Kyiv National University of Technologies and Design, Ukraine; e-mail: radionova_n@ukr.net; ORCID ID: 0000-0002-8855-2963 Breus S. Doctor of Economics, Associate Professor, Professor of the Department of Management and Public Administration, Kyiv National University of Technologies and Design, Ukraine; e-mail: breus.svitlana@gmail.com; ORCID ID: 0000-0003-0624-0219 Denysenko M. Doctor of Economics, Professor, Professor of the Department of Economics and Services, Kyiv National University of Technologies and Design, Ukraine; e-mail: profden3@gmail.com; ORCID ID: 0000-0001-8767-9762 Khaustova Ye. Doctor of Economics, Associate Professor, Head of the Department of Entrepreneurship and Business, Kyiv National University of Technologies and Design, Ukraine; e-mail: g.haystova@gmail.com; ORCID ID: 0000-0003-1436-6137 Matiukh A. Chairman of the Board of the Private Joint-Stock Company (PJSC) «Khmilnyk clothes factory “Lileia”», Ukraine; e-mail: lileya-bux@ukr.net

Introduction. Among the topical problems of the development of business structures, the most important is the analysis of the effectiveness of the cost management system, which has a direct impact on increasing the level of profitability. Traditionally, in the domestic and foreign literature, sufficient attention has been paid to scientific and methodological developments on cost analysis. A large number of studies devoted to various aspects of monitoring and analysis of the cost management system shows the importance and urgency of this problem. Taking into account the high workload of enterprise managers, the proposed criterial approach, which makes it possible to understand which stage of cost management should be paid more attention to in order to improve management efficiency, is relevant. Taking into account the modern features of the market environment, it is necessary to adapt the accumulated scientific and methodological experience to applied solutions in relation to the effective analysis of the cost management system of business structures.
They consider the analysis of the cost management system from the standpoint of increasing its efficiency, the ability of the cost management system to timely identify reserves for optimizing costs and reducing the cost of production. In this context, the purpose of the article is to provide methodological support for analyzing the effectiveness of the cost management system of business structures using a criteria approach in the context of each stage of the management process.
Research results. The analysis of the cost management system should be aimed at determining the ways to effective achievement effectively the desired results according to the existing system, as well as identifying key problems and areas for improving the cost management system. For this, it is advisable to apply the criteria approach for each stage of the cost management process.
Criterion -is an indicator, a feature on the basis of which an assessment of the quality of an economic object, process is formed, a measure of such an assessment [1, p. 154]. So, for each task, a measure of efficiency is determined, which shows the advisability of choosing a solution from alternative options. The criterion must meet the following requirements: be weighty and be critical in relation to the variable indicators, that is, it must be promptly changed when the parameters change depending on the decision made. In real conditions, as a rule, it is necessary to use not one, but several criteria, grouped for a complex analysis of indicators at each stage of management. It is especially important to take into account the relationship of individual criteria and the assessment of their impact on the growth or reduction of the generalizing criterion [2, p. 85].
For the study, two methods were combined: a method based on the determination of numerical indicators, which characterizes the functional components of the stages of cost ISSN 2306-4994 (print); ISSN 2310-8770 (online) management, and an empirical method, which takes into account expert assessments of specialists from leading sewing enterprises in Ukraine. This made it possible to conduct research taking into account the assessment of experts of the appropriate level of qualification and to reduce the subjectivity of respondents.
To assess the cost management system in the garment industry, it is advisable to analyze each stage of cost management using a number of criteria. As a result of the calculations, the complex criteria will be obtained: where KK -complex criteria; i -coefficient of significance of local criteria's; K i -local criteria's; n -number of local criteria for the relevant stage of cost management.
The weighting coefficients can take values from 0 to 1. They are determined using the hierarchy analysis method developed by the American mathematician T. Saaty as a mathematical tool for a systematic approach to solving complex problems in the decision-making process [3, p. 128]. Local criteria can take values from 0 to 1. For each of them, there are three options for the accepted value: the most and least effective for the enterprise and an intermediate value (respectively K = 1, K = 0 and K = 0.5). Thus, the complex criterion can be in the range from 0 to 1. Herewith, the closer the value of the complex criteria to 1, the more efficient the cost management system exists at the enterprise.
For a more complete analysis of the effectiveness of cost management at enterprises, we suggest using the resulting criterion: where -resulting criterion; KK j -complex criterion of j-stage; m -the number of subsystems of the cost management system. Source: generated by the author considering [3, p. 121].
The resulting criterion can also be in the range from 0 to 1. The closer the obtained value is to 1, the more effective the cost management system in the enterprise. The results of the proposed criteria-based approach are: defining the role of each stage in the overall cost management system at the enterprise; evaluation of the effectiveness of the cost management system at the enterprise, the ability to compare the effectiveness of cost management systems at different enterprises [4, p. 154].
Let's consider each stage of cost management using the example of garment industry enterprises.
The stage of development (making) a decision is key in cost management system. Its implementation is carried out by top and middle managers of the enterprise [5, p. 267].
The effectiveness of the final decisions can be assessed only taking into account the final financial results in comparison with the actual data that existed before the decision was made [6, p. 9]. The ratio of the number of effective solutions to their total number is an indicator of the effectiveness of a particular system. Its functioning should be considered positive even in the presence of decisions that lead to unprofitableness, if this damage is covered by a positive value of the financial result obtained thanks to other decisions and is strategically justified [7, p. 57; 8, p. 280]. Criteria for evaluating the effectiveness of the cost management system at the stage of development (decision-making) was developed ( Table 1) taking into account the peculiarities of the enterprises of the garment industry, which are associated with a constant change in the range of products due to the need to follow fashion trends in the sewing market: 1) Types of planning that are used in the enterprise.
2) Frequency of negative deviations between planned and actual indicators.
3) Evaluating the effectiveness of the planning process in the enterprise. 4) Quality of internal information base. 5) Completeness of application of the budgeting process. 6) Timeliness of revision of standards and norms. 7) Frequency of updating the regulatory regulatory and legal framework of the enterprise. 8) Systematic expenses on demand research and development of new fashion models. 9) Regularity of forecasting demand for new fashion models. 10) Forecasting environmental threats. 11) Timeliness of providing the necessary information on costs. The quantitative characteristics of local criteria, depending on the survey participants' answer options, are summarized in Table 1.
The results of the cost analysis are used to prioritize various possible solutions in the following areas: operational cost management; pricing and development of an assortment policy; making effective management decisions [9, p. 125]. 15 experts (economists, accountants, marketers, managers) working at domestic garment enterprises were involved in the expert evaluation: PJSC «Khmilnyk clothes factory "Lileia"», JSC «Sewing factory «Zoryanka»», JSC «Santa Ukraina», JSC KVTF «Kremteks», JSC «Uzhhorod sewing factory».
On the basis of expert assessments, the coefficients of the significance of local criteria for sewing enterprises at the stage of development (adoption) of a decision were calculated ( Table 2).
As can be seen from the data of the Table 2, the criteria «Timeliness of providing the necessary information on expenses» and «Types of planning used in the enterprise» received the greatest significance, according to experts. The lowest score is given to the criterion «Consistency of spending on demand research and development of new models», which is unacceptable for sewing enterprises, considering the specifics of their products. able 2 Significance of local criteria evaluating the effectiveness of the cost management system at the stage of developing (making) decisions # Criterion Significance 1 Types of planning used in the enterprise 0. 13 2 Frequency of negative deviations between planned and actual results 0.07 3 Evaluating the effectiveness of the planning process at the enterprise 0.09 4 Quality of internal information base 0. 10 5 Completeness of application of the budgeting process 0.08 6 Timeliness of revision of standards and norms 0.07 7 Frequency of updating the regulatory and legal framework of the enterprise 0.09 8 Systematic expenses on demand research and development of new fashion models 0.05 9 Regularity of forecasting demand for new fashion models 0.08 10 Forecasting of environmental threats 0.07 11 Timeliness of providing the necessary information on costs 0.20 Total 1.0 Source: calculated by the author based on the results of expert evaluation.
The quality of the cost management system functioning at the stage of solution implementation can be assessed by the number and volume of the detected deviations of actual costs from planned ones, as well as the share of these deviations in the total planned costs in the context of: cost centres; cost items; cost carriers [10, p. 216].
To assess the cost management system of the sewing enterprises at the stage of implementing the solution, it is advisable to apply the following criteria: 1) frequency of identifying the reasons for deviations of actual costs from the standard; 2) monitoring of the current organizational structure of the enterprise; 3) presence of an organizational structure for cost management; 4) degree of detailing of the information on expenses by places of their occurrence; 5) presence of information links between structural units; 6) communicating the tactical and strategic goals of the enterprise to employees; 7) improving the level of qualification of employees; 8) use of various methods of influence on employees in the event of negative deviations; 9) application of methods to stimulate employees based on the results of their work; 10) provision of the cost management process with appropriate software products. Quantitative expression of the criteria for the second stage of enterprise cost management is shown in the Table 3.  The generalized results of the calculating the coefficients of significance of local criteria for assessing the cost management system at the stage of implementing the solution according to the experts' data are given in the Table 4.
able 4 The significance of local criteria for assessing the effectiveness of the cost management system at the stage of implementing the solution # Criterion Significance 1 Frequency of identifying the reasons for the deviation of actual costs from the standard 0.14 2 Monitoring of the current organizational structure of the enterprise 0.04 3 Presence of an organizational structure for cost management 0.09 4 The degree of detailing of the information on expenses by places of their occurrence 0.21 5 Presence of information links between structural units 0.06 6 Communicating the tactical and strategic goals of the enterprise to employees 0.06 7 Improving the level of qualification of employees 0.07 8 Use of various methods of influence on employees in the event of negative deviations 0.14 9 Application of methods to stimulate employees based on the results of their work 0.09 10 Provision of the cost management process with appropriate software products 0.10 Total 1. At the control stage, information is collected for cost analysis with the mandatory observance of the following requirements: -efficiency; -quality; -collection of information directly at the place of origin [11, p. 187]. The more accurately these requirements are met, the higher the efficiency and quality of the management decisions made on the basis of the information received [12, p. 195].
Correct organizing and control largely predetermines the efficiency of cost management by timely presentation of information on the state and movement of inventory items and other cost components [13, p. 107; 14, p. 179].
Based on the indicated at the control stage, the following criteria can be distinguished: 1) method used to analyze costs; 2) presence of an organizational unit dealing with cost analysis; 3) frequency of cost analysis; 4) completeness of cost analysis; 5) reliability of the information provided for cost analysis; 6) timeliness of providing of the analytical information; 7) depth of the cost analysis at the enterprise; 8) degree of automation of the cost analysis; 9) systematic search for cost optimization reserves; 10) operativeness of cost regulation. The quantitative expression of the specified criteria of the subsystem of analysis and cost control for the options of experts' answers is summarized in the Table 5.
ble 5 Quantitative characteristics of local criteria for assessing the cost management system at the stage of cost control The coefficients of the significance of local criteria for assessing the cost management system at the control stage are given in the Table 6. able 6 Significance of local criteria for evaluating the cost management system at the control stage # Criterion Significance 1 Method used to analyze costs 0. 11 2 Presence of an organizational unit dealing with cost analysis 0.09 3 Frequency of cost analysis 0. 11 4 Completeness of cost analysis 0. 10 5 Reliability of the information provided for cost analysis 0.14 6 Timeliness of providing of the analytical information 0. 10 7 Depth of the cost analysis at the enterprise 0.07 8 Degree of automation of the cost analysis 0.04 9 Systematic search for cost optimization reserves 0.11 10 Operativeness of cost regulation 0.12 Total 1.0 Source: calculated by the authors based on the results of expert assessments.
The data of the Table 6 indicate that at each sewing enterprise, whose representatives acted as experts during the testing, considerable attention is paid to the reliability of the information provided. At the same time, the degree of automation of cost analysis at these enterprises is not at a sufficiently high level, although today the software market offers significant diversity of software not only for accounting, but also for solving the analytical tasks of management.
Performing analysis by help of the specified criteria at each stage of cost management should show the existing problems: technical -for the acquisition and installation of more modern analysis and control tools; organizational -regarding the allocation of responsibility centres in terms of the effectiveness of functioning of the cost management system.
It is necessary to analyze the indicators of the studied enterprises of the clothing industry according to this method.
As an example, let us consider the data on the operational activities of PJSC «Khmilnyk clothes factory "Lileia"». The company uses a combination of operational and short-term planning. According to the Table 1 and Table 2 the first local criterion has value 0.5; wherein the coefficient of the significance is equal to 0.13. Negative deviations from the planned indicators occur at the enterprise often, the second criterion is 0. Planning at the enterprise shows the average degree of efficiency, i.e. 0.5 and has significance coefficient 0.09. Due to the fact that the regulatory framework is updated periodically, the fourth criterion is equal to 0.5 and its significance is equal to 0.1. The enterprise does not apply budgeting, accordingly K = 0. The sixth local criterion is equal to zero, since the standards are revised once a year. At the enterprise, the regulatory and legal framework is updated monthly, so the corresponding criterion is equal to 0.5 and has a significance of 0.09. The expenditures on demand research and demand model development are carried out periodically, the information necessary for making a decision is not always provided on time, the eighth and eleventh local criteria acquire a value of 0.5 each (the significance coefficients are, respectively, 0.05 and 0.2). The regularity of demand for new models is carried out for each seasonal group, so the criterion corresponds to one, and its significance is 0.08. The company does not forecast environmental threats, and the appropriate criterion is zero.
The value of the complex criterion is equal to 0.41 out of a possible 1.0. Therefore, at the stage of development (decision-making) the cost management system of PJSC «Khmilnyk clothes factory "Lileia"» does not work effectively enough.
The management of the enterprise should pay more attention to the first stage of cost management.
Similarly, complex and resulting criteria were calculated for other enterprises, the activities of which were studied in the work. The results obtained are grouped in the Table 7.
ble 7 The results of the implementation of the criterion approach to the cost analysis systems of the garment industry, which were studied, scores The main conclusion, that can be made by analyzing the data in the Table 7, is in the fact that the cost management system does not work efficiently at the studied enterprises of the garment industry. Even the most successful enterprise in terms of the resulting criterion JSC «Uzhhorod sewing factory» did not achieve the maximum result (1.0).
The analysis of the resulting criteria of each of the surveyed enterprises shows that their performance is almost half the maximum result. The difference in cost management systems in the sewing factories is negligible. If according to the resulting criterion for JSC «Uzhhorod sewing factory» the better indicators at the stages of decision-making and implementation (is equal to 0.76), but at PJSC «Khmilnyk clothes factory "Lileia"» the highest indicators were achieved at the control stage (is equal to 0.78).
The analysis of the above data clearly proves that these enterprises need to focus on developing ways to improve existing cost management systems. The application of the proposed criterion approach will allow companies to determine which stage of cost management should be paid more attention.
Conclusions. The proposed criterial approach to the effectiveness of the cost analysis takes into account each stage of control and is based on the study of local criteria, the indicators of which are used to calculate the resulting criterion. The study conducted on the basis of data from enterprises in the garment industry showed the feasibility of the proposed approach to the analysis of the effectiveness of the cost management system of enterprises (on the example of sewing enterprises).
At the same time, the research carried out has shown that the problems of the effectiveness of the cost management system are relevant for domestic sewing enterprises. This is due to a number of aspects: -firstly, cost reduction along with an increase in production is one of the main sources of profit at the enterprise, but due to the specifics of sewing products, they cannot be made in large quantities; -secondly, the analysis indicates a high share of costs per 1 UAH of production volume; -thirdly, in modern conditions it is necessary to keep separate accounting and planning of variable and conditionally fixed costs, which is associated with their different role in the formation of profits due to the independence of the latter from the volume of production, which is unstable in modern conditions; -fourthly, the share of conditionally fixed expenses is high; -fifthly, not all sewing enterprises have an effective cost management mechanism. The above is a promising area for further research.