Process–project model of management cost accounting in construction enterprises

Abstract

The article substantiates the organizational and methodological foundations of a process–project model of management cost accounting for construction enterprises aimed at overcoming the information gap between project costing, process-based resource consumption, and responsibility centres. Systems and process approaches, as well as methods of classification, comparison, grouping, and structural-logical modelling, are applied. A system of internal indicators is developed to ensure a consistent link between business transactions, consumed resources, business processes, construction projects, work stages, and responsibility centres. Rules for the direct attribution of costs and the causal allocation of indirect costs using appropriate cost drivers are substantiated. A “business process – construction project” matrix is proposed, enabling both the analysis of an individual project’s cost structure by process and the comparison of identical process costs across projects. An internal reporting format is developed to compare budgeted costs, flexible standards for actual output, and actual costs, while identifying the causes of variances, responsible persons, and corrective management actions. The scientific novelty lies in integrating project costing, process accounting, causal cost allocation, and responsibility control into a unified information model. The model is extended by incorporating environmental cost drivers and ESG indicators related to material circularity, resource reuse, waste management, and resource and energy efficiency. Its practical value lies in improving the accuracy of cost allocation, the timeliness of cost control, and the validity of management decisions, while providing an information basis for ESG reporting without establishing a parallel accounting system. Keywords: management accounting; construction costs; business process; construction project; responsibility center; cost factor; variance analysis; management reporting; circular economy; ESG.