Research and development of the methodology of foreign economic activity costs management at Lviv auto hub, LLC
Students Name: Chyrva Yuliia Yuriivna
Qualification Level: master (ESP)
Speciality: Management
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: англійська
Abstract: Chyrva Yu., Adamiv M. (supervisor). Research and development of the methodology of foreign economic activity costs management at Lviv auto hub, LLC. Master’s thesis. – Lviv Polytechnic National University, Lviv, 2023. Extended abstract Costs and production costs are the most critical indicators that determine the financial results of an enterprise and the efficiency of its production and business activities in general. Moreover, the effectiveness of cost management using various methodological approaches makes it possible to identify reserves for their reduction and opportunities for intensive business development, including foreign economic activity. In the context of ever-increasing competition, the importance of using an adequate methodology for managing the costs of foreign economic activity in a modern enterprise is steadily growing. Moreover, companies operate in an increasingly complex external environment (shorter product life cycles, progressive globalisation of sales markets, 9 rapid information technology and technical progress, etc.). Therefore, they must manage costs more efficiently and effectively [1-5]. Study object – Lviv auto hub, LLC. The subject of the study is the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC. The study aims to develop measures to develop a methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC. Lviv auto hub, LLC is currently engaged in importing and selling motor vehicles in the Ukrainian market. Its business is based on honesty and reliability. In addition, the company provides consultations and professional services. Its considerable experience importing cars from the US, Canada and Europe and dozens of imported vehicles guarantee a safe and successful purchase for each client. Based on the analysis of the financial condition of Lviv auto hub, LLC, we have shown that the company has no problems with its profitability, as all the calculated indicators of such profitability are positive. Nevertheless, in the dynamics, the value of such indicators continues to decrease from year to year. This decline is primarily due to the general state of business development in Ukraine, which is currently in the midst of the war and has recently experienced the full impact of COVID. Furthermore, the results showed that negative trends in the dynamics also characterise the liquidity indicators of Lviv auto hub, LLC. As for the business activity indicators, the decrease in asset turnover in the dynamics and the increase in the average maturity of accounts payable are negative. Considering the specifics of Lviv auto hub, LLC, we understand that this company directly participates in foreign economic activity, importing cars. Therefore, its representatives can inspect cars in the USA, Canada or European countries in any condition. Based on the results of our work, we have identified the following problems in the development of the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC: 10 1. Lack of a conceptual vision of developing the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC. 2. Inconsistency of the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC with the guidelines for the foreign economic development of this business entity. In this paper, we propose to develop the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC by: 1. Using the conceptual basis for developing the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC. 2. Using a phased model of the relationship between the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC and the guidelines for the foreign economic development of this business entity. By using the conceptual basis for the development of the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC, managers and analysts of this enterprise will be able to clearly understand (and choose) the most appropriate cost management tools and methods of such management, taking into account the principles and functions of cost management of the foreign economic activity. In addition, we are creating the preconditions for the identification of cost management entities, which, in turn, will determine the vector of strategic cost management of the foreign economic activity, forecast and plan such costs, organise their management, carry out their rationing (where possible and necessary), draw up budgets, account for costs, calculate the cost price and analyse it. Such actions will form the basis for the formation of motives for optimising the costs of foreign economic activity, regulating and coordinating such costs, and controlling and auditing them. All of this will form the basis for developing a methodology for managing the costs of foreign economic activity at Lviv auto hub, LLC. The second project measure will result in a reorientation of the directions of development of the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC with a focus on the guidelines for the foreign economic development of this business entity. Cost management should meet the information needs of 11 management to a greater extent in the context of work in foreign markets. Furthermore, emphasis should be placed on management efficiency, ensuring an increase in the effectiveness of the company’s export-import operations. With the help of the proposed measures, we can not only ensure the development of the methodology for managing the costs of foreign economic activity of Lviv auto hub, LLC but also achieve the appropriate value of the return on assets, which will increase by 1.17%. Keywords: assets, costs, foreign economic activity, concept, methodology, management. References 1. Hanusych, V., & Sheveria, Ya. (2023). 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