The cost accounting in pipe rolling plants

Today metallurgical plants play a significant role in the Russian economy. According to current research studies in the Russian economy there are more than 28 000 enterprises, which offer different products and services in the sphere of metallurgical production. In general terms the indicated sector can be divided into ferrous and non-ferrous metallurgy. The first type plays a more important role. The separate segment of the ferrous metallurgy market is a pipe and tube production. The pipe rolling enterprises play a key role in the development of the economy of the Ural Federal District. In accordance to the data of statistical survey more than 100 000 people work in enterprises of the abovementioned industry, which makes up about 1/3 of all working population in the manufacturing industry. Moreover, pipe rolling plants also hold a significant position in terms of sales among enterprises which are engaged in different economic activities. Today administration of the majority of pipe rolling enterprises is facing a problem of forming effective cost accounting. Based on the data of several investigations one of the factor in achieving a sustainable competitive advantage is a possibility to reduce costs associated with the production and realization of pipe rolling products. The need for effective cost management is largely associated with their role in the process of profit generation. It’s the profit which ultimately serves as a main condition of the company’s sustainable economic development facilitating the achievement of competitive advantages on the market. In this regard for the most of pipe and rolling plants the profit maintenance by an effective continuous process of cost management is quite modern phenomenon in terms of current trends of financial and economic development.