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Abstract

Contents

Introduction

In the course of business, any enterprise incurs certain costs, without the implementation of which it is impossible to achieve the goals and tasks facing it. When producing products, the enterprise spends various resources that are available at its disposal (material, labor, etc.), and because of how efficiently it does, the results of its activities as a whole depend. This problem is especially acute in a market economy, where it determines the competitive position of the enterprise. Cost management is used to address issues such as: valuation of profitability factors, selection of necessary orders, planning of future activities, estimation of production reserves and their calculation, distribution and minimization of costs, etc.

1. Theme urgency

In the current economic conditions, any business entity has to orient itself both to sustainable and stable functioning and to development in the conditions of a modern innovative economy. Achieving a sustainable advantage over competitors today is only possible with a flexible and rational cost management system, which emphasizes the relevance of this study.

2. Goal and tasks of the research

The purpose of the study is to develop theoretical and methodological provisions, develop recommendations for improving the mechanism of cost management.

In accordance with the goal, the following tasks are formulated:

The object of research : is the process of managing costs in the enterprise.

The subject of the research : is theoretical foundations and economic approaches to enterprise costs management.

The problem of cost management is considered in the works of Schonberger R.J., Fandel G., Drury K., Nagel K. Among domestic researchers it is worthwhile to mention A.F. Aksenenko, I.A. Basmanova, V.B. Ivashkevich, S.F. Pokropivnogo, Ya. V. Sokolov, V. I. Stoyan, and others.

The scientific significance of the research lies in the development of theoretical foundations and the development of methodological recommendations for improving the enterprise cost management system.

Methods of research The theoretical and methodological basis of the master's work was the scientific works and methodological developments of both domestic and foreign scientists in the field of cost management of the enterprise. To solve the tasks set in the work, the following methods were used: induction and deduction (in the definition of "cost management"), analysis and classification; approaches: information (analysis of information sources), system (consideration of cost management as an integrated system), process approach. The information base of the research is the general provisions of scientific works of domestic and foreign scientists in the framework of the topic, statistical information, materials of scientific conferences, periodicals and the Internet.

Approbation of the results of work: The main scientific and practical provisions of the work were presented at international scientific and practical conferences: "Strategy of sustainable development in the anti-crisis management of economic systems" in 2016, "Resource-saving. Efficiency. Development "in 2016 - 2017 years.

3. Methodical bases of cost management

Modern trends in the field of cost research are characterized by the active introduction of new methods of cost management. In this situation, various methods can be applied that relate to both strategic and operational management. Their choice is due, primarily, to management objectives and the availability of conditions for use.

For the formation of an integrated system for managing costs and results at various stages of the product life cycle, it is most appropriate to develop approaches to integration and joint application of advanced management accounting systems - standard-costing, target-costing and kaizen-costing.

In the management of enterprise costs, various methods can be applied that relate to both strategic and operational management. Their choice is due, primarily, to management objectives and the availability of conditions for use.

Modern methods of cost management include:

  1. Standard-costing
  2. Direct-costing
  3. Method of production management according to the JIT system
  4. Functional-value analysis (FSA)
  5. Strategic Cost Analysis (SCA)
  6. Work Cost Accounting (ABC)
  7. The concept of managing life cycle costs (LCC)
  8. Absorption Costing
  9. Target costing
  10. Kaizen - costing
  11. CVP analysis (break-even analysis)
  12. Benchmarking
  13. Cost-killing method
  14. Method VCC

A great effect in optimizing the costs of an organization can be achieved by applying the Life Cycle Costing (LCC) method - the concept of managing life cycle costs. This approach was first used in the US in the framework of state projects in the defense industry. The cost of a complete product life cycle - from design to production phase-off - was the most important indicator for government agencies, since the project was financed based on the full cost of the contract or program, rather than the cost of a particular product. New production technologies have provoked the movement of LCC methods into the private economy sector. The main reasons for this transition are: a sharp reduction in the life cycle of products; increase in preparation and start-up costs; almost complete definition of financial indicators (costs and revenues) at the design stage.

Its essence lies in the fact that costs are determined not for the activity of the enterprise for a number of periods, but for the production and sale of a specific product throughout its life cycle and in the future is compared with the corresponding revenues. Planned costs are determined for each stage of the product's life cycle (without dividing or dividing by periods). To identify the results of the development and introduction of a new product to the market, the costs for the life cycle stages are accumulated by the cumulative total.

Under the total cost of resources for the life cycle of products is understood the costs associated with the consumption of all types of resources in value terms for the period from the beginning of R & D until the end of operation and disposal.

The amount of costs at individual stages of the life cycle depends on the nature of the product, its technical complexity and novelty. A fundamentally new, technically complex and science-intensive product requires a large expenditure on research and development, sometimes many times higher than costs in all other stages of the life cycle.

4. Improvement of enterprise cost management mechanism

In the third section "Improvement of enterprise cost management mechanism" it is planned to develop recommendations for improving the cost management system based on a specific economic and mathematical model and to substantiate the effect of a set of proposed activities.

Conclusion

The development of competition in the market and a decrease in the rate of profit affects the prospects for the operation of the enterprise, taking into account the established mechanism for managing costs. The probability of successful development increases when the company is able to competently manage costs, especially during periods of cyclical decline in market conditions.

In managing costs of large enterprises, various methods can be applied. Their choice is due, primarily, to management objectives and the availability of conditions for use. The most common methods of cost management are: LCC-method, standard- costing, direct-costing, ABC. The considered methods of cost management, relating to both strategic and operational management, are quite diverse in content, different in their objectives and application features. These methods are a means of preventing the emergence of inefficient solutions already at the stage of designing and manufacturing products.

The introduction of a method in the enterprise (depending on the problem that has arisen) allows solving priority tasks, assessing in advance possible losses, minimizing costs and maximizing profits.

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