Project of Cost Management System in the Company XY

Bc. Martin Křížek, DiS.

Diplomová práce

Anotace:

The aim of the thesis is to bring an attention to a current state and issues of cost management on an academic field, focused on services; to analyse, evaluate and suggest improvements in a given project. As the competition is growing, the company’s costs are a subject of current attention. It is in the best interest of any company to be able to control consumption of their resources to deliver the desired value to their customers and create sustainable profit. The thesis is divided in two main parts; theory and practical part. The theoretical part is focused not only on cost management, cost behaviours, division of costs and description of costing methods, but it puts cost management into wide perspective together with financial, managerial accounting, knowledge management and productivity. The practical part analyses the current cost management state at the Company XY providing financial services. Alternatives in terms of costing methods are suggested. Recommendations are made based on calculations and comparison analysis of a currently used method and two suggested alternatives. The overall findings are that the currently used Contract Costing method does not provide transparent interpretation of resources consumed at complex financial activities. It is suggested to use Time-Driven Activity-Based Costing method instead, which reflects resources consumed in terms of costs assigned and costs incurred per client. It also provides valuable information on capacity usage in terms of resource potential. This structural view of resources is convenient for the purposes of decision making process of operational management as well as controlling and planning. The appropriately chosen costing method based on correct cost assumptions creates a competitive advantage and lowers risk of uncertainty.

Abstract:

The aim of the thesis is to bring an attention to a current state and issues of cost management on an academic field, focused on services; to analyse, evaluate and suggest improvements in a given project. As the competition is growing, the company’s costs are a subject of current attention. It is in the best interest of any company to be able to control consumption of their resources to deliver the desired value to their customers and create sustainable profit. The thesis is divided in two main parts; theory and practical part. The theoretical part is focused not only on cost management, cost behaviours, division of costs and description of costing methods, but it puts cost management into wide perspective together with financial, managerial accounting, knowledge management and productivity. The practical part analyses the current cost management state at the Company XY providing financial services. Alternatives in terms of costing methods are suggested. Recommendations are made based on calculations and comparison analysis of a currently used method and two suggested alternatives. The overall findings are that the currently used Contract Costing method does not provide transparent interpretation of resources consumed at complex financial activities. It is suggested to use Time-Driven Activity-Based Costing method instead, which reflects resources consumed in terms of costs assigned and costs incurred per client. It also provides valuable information on capacity usage in terms of resource potential. This structural view of resources is convenient for the purposes of decision making process of operational management as well as controlling and planning. The appropriately chosen costing method based on correct cost assumptions creates a competitive advantage and lowers risk of uncertainty.

Keywords

Financial Accounting, Managerial Accounting, Cost Management Systems, Strategic Cost Management, Contract Costing, Process Costing, Standard Costing, ABC, TDABC, Resource Consumption, Capacity Usage, Full Time Equivalent, Key Performance Indicator, Financial Services.

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 28. 8. 2017

Obhajoba závěrečné práce

• Obhajoba proběhla 4. 11. 2017
• Vedoucí: Ing. Eva Cipovová, Ph.D.
• Oponent: Mgr. Ing. Dominik Stroukal, Ph.D.

Vysoká škola finanční a správní

Magisterský studijní program / obor:
Ekonomika a management / Business Management and Corporate Finance