Abstract: The paper describes the proprietary methodology of distributing administrative expenses in the network retail businesses within the process approach to management, which has been developed to improve the quality of trade expenses administration. To this end, the author suggests using the original base unit (cost driver) in the course of distribution of the subject expenses to improve the accuracy of calculating the trade process efficiency. The author gives reasons to the necessity of applying a comprehensive approach in its selection. This implies use, as the base unit, of a coefficient representing shop turnover per 1m2 of sales area. The author has made a coefficient rating to formalize the relationship between the management results and economic factors of the trade businesses risk. This approach takes into account the commodity prime cost, and the quality and economic efficiency of the management processes in selling subdivisions of a network business.
Keywords: processes, cost management, quality, basic unit, the turnover per unit of retail space, the constant conversion factor, evaluation criteria, sales division, risk factors, the distribution ratio, commodity groups
Recieved: 10.04.2016 Accepted: 29.08.2016 UDC: 332.05