Integration of Cost Management into the Balanced Scorecard Based on Financial Reporting
DOI:
https://doi.org/10.58423/2786-6742/2026-13-317-325Keywords:
cost management, Balanced Scorecard, financial reporting, strategic management, enterprise cost policy, performance efficiency, strategic indicatorsAbstract
The article examines theoretical and methodological foundations of integrating cost management into the enterprise Balanced Scorecard system. The subject of the research is the development of a strategically oriented cost management system based on the use of financial statements and management reporting indicators. The study addresses the need to improve the effectiveness of cost management under conditions of limited information support, instability of the external environment, and the increasing role of strategic management tools in ensuring enterprise performance. The purpose of the study is to develop a methodological approach to integrating cost management into the Balanced Scorecard of an enterprise. The methodology includes a systemic approach, methods of economic analysis, comparison, generalization, and logical modeling. The analysis is based on financial statements and management reports of JSC “Ukrainian Energy Machines”. The study proposes a methodological approach to integrating cost management into the Balanced Scorecard system. This approach involves structuring cost indicators according to four perspectives: financial, customer, internal business processes, and learning and growth. A model of integrating cost management into the system of strategic performance indicators of the enterprise has been developed, which makes it possible to establish cause-and-effect relationships between resource use, costs and performance outcomes. The findings can be applied in the practical activities of enterprises in forming a strategically oriented cost management system based on financial and managerial data. The study shows that the proposed approach allows transforming financial reporting data into a system of strategic cost management indicators and improving decision-making quality. The results contribute to aligning the enterprise cost policy with its strategic development objectives and improving the efficiency of resource utilization.
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