Costs and controllability of petrochemical industry operations in international oil crises: An application in Azerbaijan petrochemical sector

Thanks to the many different changes experienced around the world, it has always kept businesses in the process of competition. In particular, the changes experienced in the context of globolization have made it necessary for businesses operating in various sectors to innovate in their activities such as technology, communication, transportation, procurement, investment, sales. No matter how much it affects the income levels, it also affects the cost levels and the controllability levels of the costs involved. Developments are necessary for businesses operating in every sector as well as for petroleum enterprises operating in the petrochemical sector. It also affects the financial performance levels of the petroleum enterprises. From another point of view, another factor affecting the costs of the petroleum enterprises, the audit studies related to the costs, and in general, the financial performance, is the unexpected developments in the petrochemical sector. The current accounting methods to determine the costs of petroleum enterprises operating in the petrochemical sector, to determine the expenses that constitute the total cost, to enable the control of the costs, to affect the current financial performance of the enterprise, and to minimize the costs that are in question within the framework of the activity periods. For this reason, today petroleum enterprises have determined various strategic policies in order to minimize their current total costs. In general, the main purpose of our study consists of determining the total costs of an oil company operating in the petrochemical sector in Azerbaijan, determining the expense items that make up the costs, and researching the total annual and monthly costs during the activity year. Data were collected and the study was carried out based on these data. As a result, the main purpose of the study consists of determining the total annual and monthly costs, inspired by the annual data of the oil company.