The oretical basis of business value management

Ladynenko Oleg
graduate of the third level of higher education of the Department of Accounting and Finance, National Technical University "Kharkiv Polytechnic Institute", Kharkiv, Ukraine, E-mail:Oleh.Ladynenko@emmb.khpi.edu.ua, ORCID ID: https://orcid.org/0009-0009-4295-405X

Cite this article:

Ladynenko O. (2024) The oretical basis of business value management. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Teoretychne pidgruntia upravlinnia vartistiu biznesu; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 7-8 (320-321), pp. 95-102.

Abstract

The purpose of the article is to deepen the theoretical basis in the development of business cost management and further development of the theory of cost in the context of clarifying the essence of system-forming concepts based on the synthesis of conceptual approaches to their interpretation. The theoretical and methodological basis of the research is the theory of cost management, institutional theory, as well as methods of generalization, analysis, and a systemic approach. The information and analytical base was formed as a result of the elaboration of legislative acts of Ukraine, statistical and analytical reviews on the issues of value-oriented management of business processes, scientific papers and publications. It is proved that from an economic point of view the concept of "company value" is based on three main theories, namely: theory of marginal utility, labor theory and market valuation. Taking into account the generalization of the positions of scientists regarding the interpretation of the concept of business value or enterprise value, common features were highlighted, namely: fixed effective financial indicators of activity, the presence of external and internal environmental factors. Based on the analysis carried out in the study, the author formed the essence of business cost management, which consists in defining an integral economic indicator, by which it is possible to determine how effective the decisions made by the management are and affect all parameters of the company's activity.

Keywords

cost, business cost, theory of cost management, competitiveness.

JEL classification: G300; G310; DOI: https://doi.org/10.32680/2409-9260-2024-7-8-320-321-95-102

UD classification: 658.15:65.011:330.13

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