Cost management in bamboo airways status and solution for the development

In order to survive and grow in today’s increasingly competitive market economy, each enterprise must take its best efforts to find its own effective cost management way to not only maximize operating costs, enhance the quality of services and products, but also help the managers make the best and appropriate decisions in a sound and informed manner to increase their competitiveness in the market. Cost is always one of crucial concerns to corporate managers in the governance of their business operations. Effective cost management is one of key elements that decides the success of any enterprise. To perform their cost planning and management functions well, it is essential that the managers should have the knowledge of cost information from administration division. As a result, cost information is an essential input to the managers. The topic of cost management has received an increasing interest among Vietnamese enterprises. Having the knowledge of cost information in a timely and accurate manner is one of decisive factors to the success of the enterprise. Having such a knowledge and understanding the nature of each cost will enable the managers easily derive useful information and help make informed and sound business decisions. Thus, timely developing a complete and effective cost management system is an urgent and essential task of today’s enterprises. Profit maximization is the top goal of any business in the economy. In addition to finding the markets, boosting production capacity, and improving product quality, cost and cost management are also very important to business managers. Today, in addition to the tasks of collecting, processing, reflecting, and recording economic transactions, administration department is also required to analyze financial situation and business costs so that it may promptly give advice to the board of management. This need seems to be indispensable for management purpose. In the world, cost management has evolved over a long period consisting of four stages, including costing and financial control, information planning and management, and reduction of waste resources in business

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUỐC TẾ ***************** VÕ THỊ DIỆP ANH COST MANAGEMENT IN BAMBOO AIRWAYS STATUS AND SOLUTION FOR THE DEVELOPMENT QUẢN TRỊ CHI PHÍ TẠI CÔNG TY CỔ PHẦN HÀNG KHÔNG TRE VIỆT, THỰC TRẠNG VÀ GIẢI PHÁP HOÀN THIỆN LUẬN VĂN THẠC SĨ Hà Nội - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUỐC TẾ ***************** VÕ THỊ DIỆP ANH COST MANAGEMENT IN BAMBOO AIRWAYS STATUS AND SOLUTION FOR THE DEVELOPMENT QUẢN TRỊ CHI PHÍ TẠI CƠNG TY CỔ PHẦN HÀNG KHƠNG TRE VIỆT, THỰC TRẠNG VÀ GIẢI PHÁP HOÀN THIỆN Chuyên ngành: QUẢN TRỊ TÀI CHÍNH Mã số: 8340202.01QTD LUẬN VĂN THẠC SĨ Người hướng dẫn khoa học: PGS TS Nguyễn Văn Định Hà Nội - 2020 ACKNOWLEDGEMENT I declare that this master’s thesis is my own research and the data and the material used in this thesis have clear sources and references to all the sources The result of this thesis is honest and derived from the actual situation of the organization In order to complete this master’s thesis, I owe a lot of people many thanks for their supporting First of all, I would like to express my endless thanks and gratefulness to my supervisor Assoc Prof Dr Nguyen Van Dinh His kindly support and continuous advices went through the process of completion of my thesis Without his assistance the thesis would not have been done effectively So far, I would like to thank all the lectures and staffs of International school – Vietnam National University Hanoi and International Faculty for their teaching and supporting me to achieve knowledge and experience My special thanks to all staffs and management’s branch of Bamboo Airways for their kind assistances and support in providing me data and advices to complete the research Thank you! ABSTRACT Under the global trend of economic integration, cost management is playing an extremely important role in business As a result, cost management has become a matter of special concern for any enterprise The dissertation with title: “Cost management in Bamboo Airways, status and solution for the development”, is conducted with a focus on clarifying the following matters: - The dissertation has presented, analyzed, and clarified key contents of cost management at Bamboo Airways Joint Stock Company - By analyzing facts at Bamboo Airways Joint Stock Company, the dissertation presents an overview picture of actual cost management practices at Bamboo Airways - By conducting a field survey on actual cost management at Bamboo Airways Joint Stock Company, the dissertation has identified the limitations in the organization of cost management practices This is an important foundation for developing a complete cost management plan - The dissertation discusses the necessity and practical significance of the organization of cost management at Bamboo Airways Joint Stock Company - It proposes a plan to improve cost management at Bamboo Airways Joint Stock Company from two perspectives: The State and Bamboo Airways Joint Stock Company In general, cost management and business performance are relatively wide and complex issues and Bamboo Airways Joint Stock Company has experienced certain obstacles in dealing with these issues Therefore, the author wants to learn more about current state of cost management at Bamboo Airways Joint Stock Company to help remove these obstacles TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT LIST OF FIGURES LIST OF TABLES LIST OF ABBREVIATIONS CHAPTER 1: INTRODUCTION The necessity of the research Research objectives Research Scope Research methodology 10 Structure of the thesis 10 CHAPTER 2: THEORETICAL BACKGROUND AND LITERATURE REVIEW OF COST MANAGEMENT 11 2.1 Theoretical background of cost and cost management in business 11 2.1.1 Definition of cost management in business 11 2.1.2 Contents of cost management in business 15 2.1.3 Cost management in aviation company 25 2.2 Literature Review 32 CHAPTER 3: RESEARCH METHODOLOGY 34 3.1 Secondary data collection method 34 3.2 Data processing method 34 CHAPTER 4: COST MANAGEMENT AT BAMBOO AIRWAYS JOINT STOCK COMPANY 35 4.1 General Introduction to Bamboo Airways Joint Stock Company 35 4.1.1 Overview of Bamboo Airways Joint Stock Company 35 4.1.2 Characteristics of organizational management structure 36 4.1.3 Business performance of Bamboo Airways from 2017-2019 36 4.2 Cost management at Bamboo Airways Joint Stock Company 38 4.2.1 Cost management Organization 38 4.2.2 Cost management at Bamboo Airways Joint Stock Company 40 4.3 Evaluation of cost management at Bamboo Airways Joint Stock Company 51 4.3.1 Achievements 51 4.3.2 Limitations and reasons 52 4.4 Solutions for development of cost management at Bamboo Airways Joint Stock Company 54 4.4.1 Complete the classification method of costs 54 4.4.2 Development of cost estimation 55 4.4.3 Implementation of cost management information 56 4.4.4 Improvement of analysis and provision of cost information 57 4.4.5 Improvement of cost control 61 4.4.6 Other improvement solutions 62 CHAPTER 5: CONCLUSION 68 LIST OF REFERENCES 69 LIST OF FIGURES Figure 1.1 Workflow of collect cost management information 21 Figure Company Organization chart 36 Figure Organization chart of Financial and Accounting Division 39 Figure 3 Cost structure of Bamboo Airways 41 Figure Chart of fuel prices in 2018-2019 42 Figure Chart of Maintenance repair and overhaul expense in 2019 44 Figure Chart of Ground handling Expense in 2019 45 Figure Chart of Aircraft rental expense in 2019 46 Figure Integration flow of information .50 LIST OF TABLES Table 1 Structure of operating cost .26 Table Daily flight schedule 30 Table Cost estimation method for flight 31 Table Business performance of Bamboo Airways from 2017-2019 37 Table Cost estimation for flight- Financial Department 49 Table Budget implementation report 59 Table Monthly Cost management report 60 Table 4 Cost management report by routing 60 LIST OF ABBREVIATIONS AIMS Airplane Information Management Systems AMOS Airline Maintenance and Operating Systems Company/BAMBOO Bamboo Airways Joint Stock Company (BAMBOO AIRWAYS AIRWAYS) FIN & ACC Financial and Accounting Department FO Flight Operation Division GO Ground handling service Division HR Human resource Department IT Information and Technology Department JSC Joint Stock company MAR Marketing Department MEDIA Internal and Social media Department OFFIC Office Department PLANNING Planning Department PROC Procurement Division SAP Accounting system SQA Safety Quality Assurance Department TECH Technical and Maintenance Division TRC Training Center VND Vietnam Dong CHAPTER INTRODUCTION The necessity of the research In order to survive and grow in today’s increasingly competitive market economy, each enterprise must take its best efforts to find its own effective cost management way to not only maximize operating costs, enhance the quality of services and products, but also help the managers make the best and appropriate decisions in a sound and informed manner to increase their competitiveness in the market Cost is always one of crucial concerns to corporate managers in the governance of their business operations Effective cost management is one of key elements that decides the success of any enterprise To perform their cost planning and management functions well, it is essential that the managers should have the knowledge of cost information from administration division As a result, cost information is an essential input to the managers The topic of cost management has received an increasing interest among Vietnamese enterprises Having the knowledge of cost information in a timely and accurate manner is one of decisive factors to the success of the enterprise Having such a knowledge and understanding the nature of each cost will enable the managers easily derive useful information and help make informed and sound business decisions Thus, timely developing a complete and effective cost management system is an urgent and essential task of today’s enterprises Profit maximization is the top goal of any business in the economy In addition to finding the markets, boosting production capacity, and improving product quality, cost and cost management are also very important to business managers Today, in addition to the tasks of collecting, processing, reflecting, and recording economic transactions, administration department is also required to analyze financial situation and business costs so that it may promptly give advice to the board of management This need seems to be indispensable for management purpose In the world, cost management has evolved over a long period consisting of four stages, including costing and financial control, information planning and management, and reduction of waste resources in business For non-production costs, especially general & administration expenses, accounts should only update incurred costs but not prepare any budget estimation or necessary norm for component costs Such costs as purchase of office supplies, electricity and water expenses, or telephone charges should be set on basis of reasonable norms to prevent from wasteful practices and lack of control Together with other fixed costs, the Company should prepare budget estimation for its activities to improve the control over costs and active expenditures It is easy to obtain information on fixed costs such as depreciation costs or fixed assets, salary cost, withdrawn salaries of officers, and other fixed costs of Bamboo Airways Joint Stock Company For other variable costs, they should be specifically established with norms A service enterprise should define norms based on volume of work and statistical data from previous periods 4.4.3 Implementation of cost management information Basically, the record system adopted by Bamboo Airways Joint Stock Company is rather complete and suitable to the characteristics of the enterprise and applicable accounting regulations Due to the nature of summarizing past data, cost management will rely on records of economic operations so incurred for update in the accounting software In fact, there are economic costs incurred but payment records may be provided later, which may result in delayed update in the system Then, the up-to-date nature of information will not be guaranteed Regarding the requirements on update of information of business management, in the author's opinions, operations that incur costs should be recorded in a detailed statement of additional costs for each subject of cost and daily reports should be submitted to accounting department of Bamboo Airways Joint Stock Company so that responsible employees may update information in the accounting software After designing a detailed system of cost accounts by cost function and behavior, having it updated in the accounting software for each subject and collection of costs, then the system will enable easy processing and provision of the most accurate and updated information on revenues and costs on the detailed journals of corporate costs Then, it is possible to provide corporate managers with specific, accurate, and timely information on revenue and costs of the Company at any time 56 4.4.4 Improvement of analysis and provision of cost information Improve the processes for analyzing cost management accounting information: Bamboo Airways Joint Stock Company needs to build a flexible and effective international economic information system to analyze, process, and provide timely information to the managers In order for managers to make effective business and production decisions, the organization and analysis of cost management accounting information should focus on the following issues: Firstly, regarding the subject of information analysis: The analysis of accounting information requires the involvement of all relevant departments in Bamboo Airways As a result, new accounting information is analyzed from different perspectives to meet the requirements on multi-dimensional information for managers Secondly, regarding the sources of information for analysis: For data provided from outside the system such as general data (regulations as the basis for calculation of taxes (Personal income tax rate schedule, list of tax deductions for calculation of personal income tax; value added tax rates for materials, goods; regulations on reasonable costs in determining taxable income, etc.), or data collected from other departments of Bamboo Airways (regulations on salary and bonus to employees; norms of material usage and loss; norms of labor work, etc.) This data may be recorded by accounting department Thirdly, regarding the process for collection of analysis information: The system of documents currently used by Bamboo Airways is designed by the Company itself based on sample documents issued under the enterprise accounting system To effectively manage the collection of information, the organization needs to clarify the legal nature of electronic documents in compliance with provisions of Accounting Law and reflect them in electronic, encoded form Reports on management accounting should be prepared on basis of data summarized from the journals of management accounting that are opened to meet the requirements on management accounting (combined with other sources of information such as statistic accounting, operation accounting, etc.) to explain the causes and give advice on solutions 57 The preparation of management accounting reports must ensure the following basic principles: Firstly, it must be based on information needs of corporate managers: Which information the managers require? How detailed and specific are they? Then, design an appropriate system of management accounting to provide reasonable and meaningful information to users Secondly, information as presented on the management accounting reports must be easily understandable and comparable Thirdly, management accounting reports must fully reflect actual figures and estimations for each type of economic and financial operation so that it may quickly identify any difference or abnormal fluctuation in the norms of each criteria and take suitable measures to respond to the problems in a timely manner Fourthly, management accounting reports must ensure the timeliness and reflect full details of each economic and financial operation Fifthly, the system of indicators as presented on the management accounting reports must be suitable to economic indicators under the cost estimations and must be arranged in a scientific manner to suit the nature and management capacities of the Company Sixthly, it is necessary to design the system of management accounting reports to ensure the principles of saving, effectiveness, and feasibility This has been proposed by the author in some reports in Table 4.2, Table 4.3, Table 4.4 based on these detailed statements of daily costs, the software will automatically update and summarize these onto the summary reports of cost details No I II 2.1 DESCRIPTION Dept Code OPERATING REVENUE Passenger Revenue- Domestic Passenger Revenue- International Other Revenue Total revenue OPERATING EXPENSE DIRECT OPERATING EXPENSE FLIGHT OPERATION 58 Actual month Budgeted month Variance (+/-) A B (A-B) %/ Total cost/Total Revenue C 2.2 2.3 Fuel and oil Aircraft Rental Insurance En-route charge Pilots salary Cabin crew salary Other flight operating expense MAINTENANCE REPAIR AND OVERHAUL Engineering staff cost Line maintenance Overhaul expense Spare parts Other technical expense GROUND HANDLING SERVICE (GHS) Basic ground handling charge Landing/take off Other GHS expense INDIRECT OPERATING EXPENSE 3.1 SSQA DIVISION Staff cost Other cost 3.2 SALE DIVISION Staff cost Selling expense Commission Other selling expense 3.3 III G&A DIVISION Staff cost Rental expense Depreciation and amortization expense Other G&A expense FINANCIAL INCOME/EXPENSE IV OTHER INCOME/ EXPENSE V PROFIT BEFORE TAX Table Budget implementation report Items Estimated Current month I Operating index Number of Aircraft Number of flights Number of passengers Total Block Hour (BH) Average Fuel consumption/ BH II Direct operating expense Fuel cost 59 Previous month Difference Explanation - Average cost per Aircraft - Average cost per Flight - Average cost per BH Crew expense - Average cost per Aircraft - Average cost per Flight - Average cost per BH Maintenance and overhaul - Average cost per Aircraft - Average cost per Flight - Average cost per BH Insurance expense - Average cost per Aircraft - Average cost per flight Ground handling expense - Average cost per Flight - Average cost per Aircraft Aircraft rental expense - Average cost per Flight - Average cost per Aircraft - Average cost per BH III Indirect operating expense Selling expense G&A Expense Table Monthly Cost management report Items Classification I Operating index Number of Aircraft Number of flights Number of passengers Total Block Hour (BH) Flight time (BH)-Pilot Flight time (BH)-Cabin crew II Direct operating expense Fuel cost Variable Crew expense Variable Maintenance and overhaul Variable Insurance expense Ground handling expense Aircraft rental expense III Indirect operating expense Selling expense G&A Expense Fixed Variable Fixed Allocation method Current month Specific cost Per Crews’ flight time Per Aircrafts’ flight time Per Number of flights Specific cost Per flight time Per Aircrafts’ flight time Per Aircrafts’ flight time Per Aircrafts’ flight time Table 4 Cost management report by routing 60 Domestic flights International Flight 4.4.5 Improvement of cost control To continue maintaining and promoting the control over manufacturing cots as well as remedy existing limitations, in the upcoming time, Bamboo Airways Joint Stock Company should take the following solutions: Firstly, pay more attention to the identification and classification of criteria using different methods, such as by the relationship to level of activity, variable costs and fixed costs, to consider the changes of costs by the level of activity, then provide appropriate information for the managers to make a cost estimate and control costs effectively For the managers, to control costs, it is important to identify different types of costs and especially which costs that they may reduce (variable costs) and which costs that are not (fixed costs) Secondly, it is necessary to develop and apply an appropriate and effective administration accounting model; organize the collection and summary of administration accounting information system to ensure timely and sufficient provision of information, comply with the ratings, standards, unit prices, and cost estimates for planning, checking, governing, and making business decisions Although information provided by the accounting system is important to managers, for this information to become useful in making managerial and business decisions, Accounting Department of the Company should perform a further analysis of the financial position and business performance by using financial criteria and ratios Such an analysis is not only about comparing the ratios and criteria from time to time, but also about comparing such ratios and criteria among companies in the same industry, period, and time; it is necessary to analyze and obtain insights into matters that managers should pay attention to, for example, any sudden increase of costs that accounts for a large proportion of total costs, or any extraordinary expense Thirdly, manufacturing cost control will be ineffective if Accounting Department of the Company fails to compare actual manufacturing costs and cost prices with estimated ones Therefore, the Company needs to strengthen the analysis and evaluation of differences between estimated and actual manufacturing costs to realize any deviation, analyze and seke for reasons, then make decisions to timely adjust or resolve any 61 problem For a large-scale company, it should apply software in making estimation of manufacturing costs to support in preparing budget estimation and analysis of results In summary, cost control is one of important matter in the management of corporate finance Recognizing and analyzing costs and identifying factors that have an influence on costs will help managers propose appropriate solutions to control costs, then contribute to improving business performance in general and of Bamboo Airways Joint Stock Company in particular 4.4.6 Other improvement solutions - Improve the organization and management of businesses in the company Based on its scale and conditions, as well as new economic and financial policies under new regimes, the Company should quickly improve its organization of business management to adapt to the classification of management to strengthen internal and economic accounting practices for the whole company, improve the management of employees, reasonable coordination of labor among departments, ensure enhanced and effective use of fix 62 administration of system, it is necessary to have a management accounting team to collect and process information to be provided as required for the management of Company - Managers of the Company should know to specify the requirements on information to be provided by management accounting team Also, they must know how to use and analyze information The Company should develop a system of internal indicators to ensure the consistency, and avoid any duplication or conflict between information - Train and educate management accounting teams To carry out the design and preparation of appropriate reports for different subjects of management, Bamboo Airways Joint Stock Company should pay attention to train accountants with professional knowledge of management accounting - Implement the organization of initial accounting practices, apply the system of accounting journals and accounts, and especially diversify the classification of expenses with a focus on volume-based classification Develop norms and cost estimates to complete the method of cost determination and collection - Organize to provide equipment with technical means and application of modern information technology to collect, process and provide information in a prompt manner - The characteristics of information on management accounting is forward-looking and very flexible In order to promptly serve the urgent issues in daily administration activities of the Company, it is necessary to organize the equipment and application of information technology to management and accounting tasks Especially, it is necessary to apply and maximize the capacity of computer-based accounting program This meets the requirements on a large volume of information and requires fast information processing capacity If the businesses already have accounting software to handle and provide information, this will ensure the timeliness and accuracy of management decision making process - Prepare personnel resource for cost management accounting unit For cost management accounting unit to function effectively, the Company should set up a team to perform this task As the main task of cost management accounting unit 63 is to provide information to managers, during the collection, processing, and analysis of data, cost management accounting team should identify the trends and advice to provide to the managers In addition, cost management accounting team must be able to get access to confidential information of other departments Therefore, in the process of recruiting and training cost management accounting employees, the Company should pay attention to following matters: - Regarding professional qualifications: Cost management accounting employees must be professionally qualified to perform their tasks to provide reliable and accurate information to managers; - Confidentiality: Cost management accounting employees must maintain the confidentiality of business results and secrets of the Company and they may neither disclose any information outside the Company nor use any of such information for personal interests; - Sincerity and objectiveness: Cost management accounting employees must communicate information in a sincere and objective manner They may not misrepresent or mislead information for personal benefits or collide with other departments for third party interests; - For above characteristics and requirements for cost management accounting employees, the Company should offer the policies as follows: + Training: Senior employees may coach and guide fewer senior employees and employees are encouraged to learn from each other Besides, on periodic basis, the Company should provide re-training sessions for cost management accounting employees that are enrolled in advanced classes on professional knowledge in universities + Salary and bonus benefits: The Company should offer the policy to pay salary and other benefits in an appropriate manner to suit the job and tasks of cost management accounting employees so that they may remain loyal to the Company - Relationships between accounting department and other departments and divisions Cost management accounting unit should set up close relationships with other departments and divisions in the Company to collect and communicate information in a scientific and timely manner There are two flows of information: inflow to and outflow 64 from cost management accounting unit - Requirements on inflow of information: + Information quality: Management accounting department should review and evaluate the quality of information provided from other departments in terms of the sincerity and subjectiveness before using such information for management accounting purpose; + Timeliness of information: Information must be provided in a timely and appropriate manner; + Report samples: reports must be consistent between report periods and with specified forms - Requirements on outflow of information: + Determine the reporting scope: Who will management accounting information be reported to? which information to be reported? which information to be not reported? etc + Reporting information must be suitable to the relevant recipients of information; + Timeliness: information must be reported in a timely manner so that other departments may be properly prepared for the businesses; + Easily understandable and clear presentation of forms * Application of information technology to accounting work Information plays an important role in making decisions Timely and reliable information will help the managers make appropriate decisions On the contrary, untimely, inaccurate, and unreliable information will cause difficulties in making decisions and they may lead to wrong decisions When the operating scale of the Company is further expanded, the current accounting software may only meet the requirements for financial accounting but fail to meet the requirements on management Therefore, it is necessary to work with a suitable software firm that may meet the requirements on business and management, or purchase an existing software on the market with suitable functions to meet current requirements and future expandability Corporate managers and accountants must present to software specialists about their management requirements so that they may provide the most effective software 65 Currently, Bamboo Airways Joint Stock Company hasn't established a system of management accounting in general and cost management accounting in particular In the author's opinion, developing a model of financial accounting combined with management accounting will be a suitable option for current state of Bamboo Airways Joint Stock Company for the following reasons: Firstly, the employees, accountants, and planning personnel’s of Bamboo Airways Joint Stock Company are young individuals with good professional qualifications (90% have University degrees) that have been employed for a long time by the Company and are capable of meeting the requirements on accounting practices for specific tasks Secondly, accounting costs are incurred in all business processes of Bamboo Airways Joint Stock Company So, each employee, department, and division should understand, record, and reflect specific costs that may incur, and they must be capable of completing detailed cost accounting tasks during the organization and implementation processes Thirdly, the model of combining financial accounting with cost management accounting will leverage existing strengths of financial accounting department of Bamboo Airways Joint Stock Company Based on this, the author proposes the model of cost management accounting at Bamboo Airways Joint Stock Company as follows: At Bamboo Airways Joint Stock Company, management accounting will be performed to include the components of financial accounting Accountants will perform similar operations in both management accounting and financial accounting This means that cost management accounting will be performed by cost accountants For cost management accounting specifically, the functions of Accounting Department are to collect, process, and provide information on cost management accounting practices directly to the Board of Management of Bamboo Airways Joint Stock Company through management and analysis reports to give advice to the managers in making decisions Employees that perform cost management accounting will maintain a close contact with the Head of Finance and Accounting Department of Bamboo Airways Joint Stock 66 Company to update information on volume estimation and cost norms for each business period so as to make necessary comparison and collation with actual volume and costs Cost management accounting unit must be under the leadership of the Chief Accountant, who will assign tasks to managers and perform professional directions as required by Accounting Department The functions of this unit should be collected and process initial information on costs, prepare and submit detailed reports to management accounting employees of Bamboo Airways Joint Stock Company for further analysis Based on these, this unit will be able to collect and process field information, actual information without payment transactions recorded in financial accounting, fluctuations, and difficulties in performing operations at local sites will be provided in a timely, accurate, and complete manner 67 CHAPTER CONCLUSION Under the global trend of economic integration, cost management is playing an extremely important role in business As a result, cost management has become a matter of special concern for any enterprise “Cost Management at Bamboo Airways Joint Stock Company, status and solution for development”, is conducted with a focus on clarifying the following matters: - The dissertation has presented, analyzed, and clarified key contents of cost management at Bamboo Airways Joint Stock Company - By analyzing facts at Bamboo Airways Joint Stock Company, the dissertation presents an overview picture of actual cost management practices at Bamboo Airways - By conducting a field survey on actual cost management practices at Bamboo Airways Joint Stock Company, the dissertation has identified the limitations in the organization of cost management practices This is an important foundation for developing a complete cost management plan - The dissertation discusses the necessity and practical significance of the organization of cost management at Bamboo Airways Joint Stock Company - It proposes a plan to improve cost management practices at Bamboo Airways Joint Stock Company from two perspectives: The State and Bamboo Airways Joint Stock Company However, cost management accounting is a relatively wide and complex issue, and the author has met a lot of difficulties in both terms of theories and practices, in doing this research Therefore, there are certain, unavoidable limitations I would like to welcome any comment, feedback, and direction from the instructor, scientists, and readers so as to further improve this dissertation This dissertation is completed thanks to reviewing relevant study works in the literature as published on magazines, journals, etc., as wells useful instructions given by the instructor, and support from the co-workers at Bamboo Airways Joint Stock Company 68 LIST OF REFERENCES Bamboo Airways Joint Stock Company (2019), Company profile Bamboo Airways Joint Stock Company (2017-2019), Financial statement Bamboo Airways Joint Stock Company (2019), Business plan Charles T Horngren, Srikant M Datar, Madhav V Rajan (2012), Cost accounting: A managerial Emphasis, Pearson Education Publishing House Circular No 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accounting, University of Commerce 29 Vo Van Nhi (2015), Financial Accounting, Financial Publishing House 30 V.Rajesh Kumar, R.K.Sreekantha (2018), Cost management, McGraw-Hill Education 70 ... planning of the unit; advising head of department in directing and inspecting and supervising the management and compliance with the financial and accounting regime - Researching and proposing... management is the process of analyzing necessary information related to financial information for business management This includes financial information (revenue and costs), non-financial information... for management purpose In the world, cost management has evolved over a long period consisting of four stages, including costing and financial control, information planning and management, and