Cost determinants in a basic sanitation service provider in the municipality of Uberlândia/MG

Abstract

Within the context of Strategic Cost Management, the concept of Cost Determinants emerged. This represents an instrument capable of identifying the causes of cost elements within organizations. Applying this concept to the reality of basic sanitation entities in Brazil, whose peculiarities do not impede the implementation of this theme, the analysis of cost determinants can aid in the management of these entities and, consequently, in improving the quality of services reaching the population. Therefore, the objective of this work is to identify which cost determinants stand out in the basic sanitation sector. The research is based on the main costs of these activities in a service provider in the municipality of Uberlândia/MG, available from 2013 to 2022 on the SNIS platform. A quantitative methodology was used, with data exploration, intuition of concepts, and document analysis. As a result, it was observed that the Management Model, Scale, Location, Relationships in the Value Chain, and Institutional Factors represent the most prominent determinants. The effects of these determinants are those that most impact the cost structure in the basic sanitation entity analyzed. The research contributes to the academic context of Strategic Cost Management, to the practical context of operational and economic management, and to the social context of human dignity. The main limitation of the research is restricted to the analysis of a single service provider, which may not represent the reality of services when provided in a regionalized manner.