Cost structuring in order to reduce expenses of enterprises

Abstract

The efficiency of current costs of production resources is the basis of enterprise profitability and competitiveness. This requires annual planning and implementation of specific innovative measures to ensure economical and rational use of all production resources for all structural items and cost elements. The current costs of production resources include costs for: features of technology, organization of construction production, control of production processes, quality assurance of construction work (СW), construction management, sales of construction products. By the nature of participation in the production process, the current costs of production resources are grouped into direct and indirect costs. Of particular note are the costs of basic materials, which by share are the largest among direct (immediate) current production costs, as well as the efficient use of energy resources. In addition, author provides analysis of all components of direct costs, including the cost of basic and auxiliary materials, energy resources, wage costs, operation of machinery and equipment. Innovations and measures of economical and rational consumption of basic materials and energy resources in construction are formed in the following list: material resources - search for rhythmic suppliers, optimization of stocks, ensuring regulatory minimum tolerances, use of serviceable equipment and devices, strict control and self-control of costs, high quality for the first time, training with workers, visual check of sizes and tolerances, strict accounting and compensation for losses. Similarly, the structuring of the two main parts of indirect costs, i.e. general production and administrative, is performed. Such a detailed costs structuring allows for greater specification in the planning and implementation of innovative measures to reduce expenses and increase the level of firm profitability and competitiveness.