Potapenko Julia

Faculty of economy

Speciality: Economy of the enterprise

Theme of master's work:

Management of expenses at the enterprise

Scientific adviser: Krapivnitskaya Svetlana

With the transition to market relations has increased the autonomy of enterprises, as well as their economic and legal liability. The vastly increased importance of financial resilience "of business entities, as well as increase their competitiveness. Ability to effectively manage the enterprise becomes a prerequisite for survival in the competitive struggle. Maximization of profit and efficiency of production is the main objective of the company in market conditions, conditions of self-sufficiency and self-sustaining businesses. Achieving high performance enterprise is impossible without an effective cost management in the production and marketing [1; c. 56].

In recent years there has been a steady increase in production costs due to the cost of rising raw materials, fuel, energy, and a rise in interest rates for credit, growth in spending on advertising, representative costs, etc [3; c. 18].

The emergence of market relations requires improving the management of production costs, taking into account the peculiarities of the transition period to a market economy and international experience. This will allow the company to maximize profits and minimize costs, ensure cost effective operations [12; c. 36].

The main objective of the thesis - to examine the practice of cost management for the production and marketing and to develop proposals for improvement.

The strategic objectives of the development of the recommendations were: to ensure the optimal level of production costs, maximizing profits, improving the competitiveness of the investigated companies.

The cost - in monetary terms describe the amount of resources that are used for specific purposes and are transformed in production costs.

It should also distinguish between the notion of costs and expenses. Costs include the costs a certain period of time, such as business and management costs. Period costs should be fully included in the realized during this period the products, they are not запасомісткіми costs and expect them any benefits beyond this period is not necessary. Thus, if the cost of production factors in the stocks of work-related to the assets of the company, the costs discourage the period when calculating the profit on ordinary activities income [9; c. 64].

In economic theory and practice with the concept of cost is widely used notion of cost. To avoid confusion, it was advisable to stop here. There are several interpretation of differences between the concepts of "costs" and "expenses". According to one of them - it can be called conditional language - the word "costs" should be used to denote the sum of costs of any production or function, which provides: The cost of production, turnover costs, which consist of a separate material and labor costs. Accordingly, another - costs more broad concept than cost, because it contains the loss rashldy to social needs. The first version of the definition of these terms seems to us more than the best, so in the future, we will consider them identical and interchangeable.

Costs of production are classified in groups of costs, the formation costs and the relationship between their parts. No classification of costs is not possible to meet the challenges of managing their enterprise. The complexity and diversity of the processes of forming a section of their costs on a number of grounds.

The planning of the analysis of production costs, all costs are grouped by economic elements of cost (estimate) and for the calculation [7; c. 95].

In turn, production costs, which, in the stages of the costs of production and the degree of readiness for production implementation are:technology; production; total cost of the finished product; total cost of sales.

Office costs - is a process of targeted spending on their types, locations and media for ongoing monitoring of costs and incentives to reduce. It is an important function of the economic machinery of any enterprise.

The system of cost management is a functional and organizational aspects. It includes organizational subsystems: the search and identification of savings, rationing resource planning expenses for their species, accounting and cost analysis; stimulate savings and reduce costs. These subsystems managed by the relevant units of the company depending on its size (departments, offices, individual performers) [6; c. 85].

Management costs at the fulfillment of all the functions inherent in the management of any object, that is, the development of (adoption) and the implementation of decisions, as well as monitor their implementation. The management costs are realized through the elements of the management cycle: forecasting and planning, organizing, coordinating and managing, and fostering the implementation, reporting and analysis.

The management costs on primary production, ie to achieve a certain production, economic, technological or other outcome of the first step is to make the costs.

Therefore, the purpose of cost management is to achieve the intended results of the enterprise the most economic way.

Forecasting and planning costs are divided into long-term (under long-term planning) and current (at the stage of short-term planning).

The objective of long-term planning is the preparation of information on expected costs in the development of new markets, the organization of development and production of new products (services), increasing the capacity of the enterprise. This may be the cost of marketing research, capital investment (research and evaluation design work).

In domestic practice, control costs for planning, accounting and cost management for the production of products classified according to different criteria: by type of production, type of product, the cost of a local, on the composition and economic content. For practical use in the management of building cost to use the classification of elements and objects of expenditure [4; c. 33].

In the transition to a market economy, the classification of costs in the domestic enterprises will be simplified and closer to the foreign practice. In foreign practice widely adopted by subsection cost of production on a continuous variable, and the gross limit. Do the costs include only variable costs [11; C. 23].

System management costs of production and sales - is a complex process, which means in its essence the management of all sub-divisions of the enterprise, as part of the weight of covers about background processes. In domestic practice, under the management costs of production refers to the orderly formation of the cost of production of all products and the cost of individual products, monitoring tasks to reduce the cost of production, identification and reduction of reserves. The main elements of cost management is forecasting and planning, regulation costs, accounting and Calculation, analysis and monitoring costs. All of them are functioning and close relationships.

Enterprise Management is a process to ensure its activities to achieve those goals. The goal of a fully functioning enterprise is getting the maximum profit at the lowest cost for the formation of the next source of economic development. Financial results of companies, in turn, depends largely on the strategies chosen to manage costs. Proposed in this paper the concept of course, based on examining the relationship of costs, output and profits of the company enables managers to plan and predict the activities of the company [12; C. 64].