engleski

The introduction of modern cost management methods in the public sector

Recently the need for efficient and effective public management is more and more highlighted due to continues increase of public costs followed by insufficient budgetary resources for its financing. For long term sustainability of public activities and programs, public sector has to decrease costs and improve quality of its services. In order to fulfill mentioned claims public managers have to enhance existing cost management systems by introducing cost methods that are scientifically and practically well developed in business sector and could be applied in public sector. So, in this paper emphasize is put on implementation of modern cost management methods in the public sector with specially focus on benefits of introduction Activity-Based Costing and Target Costing in the public sector entities. Thereby, the main result of this paper is highlighting importance of introducing modern cost management methods in public sector and presenting possible areas of their implementation by public entities.

public sector; ABC method; target costing

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