Concepts of costs, their economic content, factors of the effect on costs

Abstract

The topic being researched is relevant, because in the current market conditions, improving the competitiveness and efficient activity of domestic enterprises compels them to find effective methods of managing their business activities. The article examines the concepts of costs, their economic content, determines the factors of influence on the costs of the enterprise in Ukraine. A number of cost classifications proposed by different authors are investigated and their peculiarity is determined. The main ways to optimize the costs of enterprises. Author's classification of costs is suggested. The main directions of cost optimization of Ukrainian enterprises are given. Adequate research will help solve a number of cost-cutting problems for dairy businesses and other sectors of the national economy. The purpose of the paper is the substantiation of measures to improve cost management in the enterprise in order to increase its effective activity. Costs and optimization of their level per unit of production is an important factor in improving the efficiency of the enterprise, while at the same time improving its competitiveness. Managers and managers are increasingly paying attention to the efficiency of resource use, their rational allocation in order to reduce the costs of production and economic activity, which, as a reserve for increasing the profitability of such activities is the key to financial stability and development of the enterprise Thus, considering the different classifications of factors that affect costs, it is important to emphasize that there is a synergistic effect. This is due to the fact that by influencing the competitiveness of products, factors change each other. High competitiveness of the enterprise is a guarantee of high profit in market conditions. In doing so, the company aims to achieve a level of competitiveness that will help it to function effectively over a long period. Management of the factors provided provides for the use of a number of measures for the systematic improvement of products, the constant search for new channels of sales, new customer groups, ways to improve service, advertising and more.