Quản trị chi phí tại công ty cổ phần hàng không tre việt, thực trạng và giải pháp hoàn thiện​

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 Structure of the thesis CHAPTER 2: THEORETICAL BACKGROUND AND LITERATURE REVIEW OF COST MANAGEMENT 2.1 Theoretical background of cost and cost management in business 2.1.1 Definition of cost management in business 2.1.2 Contents of cost management in business 2.1.3 Cost management in aviation company 2.2 Literature Review CHAPTER 3: RESEARCH METHODOLOGY 3.1 Secondary data collection method 3.2 Data processing method CHAPTER 4: COST MANAGEMENT AT BAMBOO AIRWAYS JOINT STOCK COMPANY 4.1 General Introduction to Bamboo Airways Joint Stock Company 4.1.1 Overview of Bamboo Airways Joint Stock Company 4.1.2 Characteristics of organizational management structure 4.1.3 Business performance of Bamboo Airways from 2017-2019 4.2 Cost management at Bamboo Airways Joint Stock Company 4.2.1 Cost management Organization 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 Table Daily flight schedule Table Cost estimation method for Table Business performance of Bamboo Airways from 2017-2019 Table Cost estimation for flight- Financial De Table Budget implementation report Table 3Monthly Cost management r Table 4Cost management report by AIMS AMOS Company/BAMBOO AIRWAYS FIN & ACC FO GO HR IT JSC MAR MEDIA OFFIC PLANNING PROC SAP SQA TECH TRC VND 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 - 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 BI Indirect operating expense Selling expense G&A Expense Table Monthly Cost management report Items 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 Crew expense Maintenance and overhaul Insurance expense Ground handling expense Aircraft rental expense III Indirect operating expense Selling expense G&A Expense Table 4 Cost management report by routing 60 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 fixed assets and application of technologies to business Improving the organization of business management system will be an important content in the business This is closely related to information system that the information on management accounting provides - Realize the role of management accounting, especially for construction engineering companies in the market mechanism In the market mechanism, if there is a lack of directional information for business decision making process, then such decisions may lead to mistakes The goal of management accounting is to provide direction information for company to make their decisions - Organization of the accounting system: due to the new management accounting model for businesses, the organization of the accounting system at Bamboo Airways Joint Stock Company currently focuses on designing and collecting information In term of financial accounting, Bamboo Airways Joint Stock Company hasn't set up any separate management accounting system To obtain accounting information for use in the 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 53/2006/TT-BTC of June 12, 2006 guiding the application of cost management in enterprises, promulgated by the Ministry of Finance, Statistical Publishing House, Hanoi Dao Van Tai, Vo Van Nhi, Tran Anh Hoa (2013), Cost management applied to Vietnamese enterprises, Financial Publishing House Dang Thi Hoa (2006), Cost management curriculum, Hanoi University of Commerce, Statistical Publishing House, Hanoi Dang Van Thanh, Doan Xuan Tien (2014), Enterprise Cost Management, Finance Publishing House Doan Ngoc Que, Le Dinh Truc, Dao Tat Thang (2018), Management Accounting, Economics Publishing House, Ho Chi Minh 10 Hoang Bich Diep (2017), Improving production cost management at Thang Long No.4 Construction Joint Stock Company, Master thesis in Accounting, University of Labour and Social Affairs 11 Huynh Loi, Nguyen Khac Tam, Vo Van Nhi (2011), Cost Management, Statistical Publishing House 12 Le The Anh (2017), Building an international economic model for cost in transport enterprises in Vietnam, Doctoral thesis, Central Institute of Economic Management; 13 Le Thi Minh Hue (2014), Completing cost management accounting model in Thanh Hoa sugar enterprises, Journal of Forecast Economy; 14 Nguyen Hai Dang (2009), Improving cost management at book companies in Hanoi, Master's thesis in economics, University of Commerce 15 Maryanne M Moven and Don R Hansen, Cost management: Accounting and Control, Fifth Edition (2005), South-Western College Pub 69 16 Nguyen Nang Phuc (2017), Corporate Cost Management, Financial Publishing House, Hanoi 17 Nguyen Phu Giang (2015), Cost management and business analysis, Finance Publishing House, Hanoi; 18 Nguyen Tan Binh (2013), Cost Management, Vietnam National University Press, Ho Chi Minh City; 19 Nguyen Thi Mai Anh (2014), Improving the cost management accounting in the plastic corporations listed on Vietnam stock market, Doctoral thesis in accounting, University of National Economics 20 Ministry of Finance (2014), System of documents guiding the implementation of Accounting Law and Statistics Law Finance Publishing House, Hanoi 21 Ministry of Finance (2016), Accounting Law and guiding documents, Finance Publishing House 22 Ministry of Finance (2019), Vietnam Accounting Standards System - Guidance on implementing 26 accounting standards, Finance Publishing House, Hanoi 23 Ministry of Finance (2016), Accounting Law, Hong Duc Publishing House 24 Ministry of Finance (2013), Things to know about financial management in capital construction investment, Finance Publishing House, Hanoi 25 Pham Van Duoc (2014), Guidance on organization of cost management in enterprises, Statistical Publishing House; 26 Pham Van Duoc (2015), Cost Management, Statistical Publishing House 27 Rigas Doganis (2005), Flying off course-The Economics of International Airline, Taylor and Francis Publishing House 28 Trinh Thi Thu Huong (2017), Cost management at Investment and Urban Development Investment Joint Stock Company, Master thesis in 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 ... 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 Chuyên ngành: QUẢN TRỊ TÀI CHÍNH Mã số: 8340202.01QTD LUẬN... 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... non-financial information (productivity, quality) and other factors of the business Cost management helps businesses focus its capacities on developing its strengths and identifying important business