Enterprise Costs: Essence and Management Features in Modern Conditions

Abstract

Purpose: The objective of the article is the study of theoretical provisions and the development of practical recommendations for improving the company's cost management methodology. Design / Methodology / Approach: The following methods were used in the research process: methods of induction and deduction, the method of comparison, the method of generalization – to reveal and clarify the economic essence of costs; system approach – to build a system of cost management of the enterprise; statistical research methods – to assess the structure and dynamics of enterprise costs; graphic – for a visual presentation of research results. Findings: The article examines the economic essence of enterprise costs through the prism of national and international accounting standards. The composition and structure of the company's costs were diagnosed and the factors that influenced their change were analyzed. The theoretical and methodological aspects of enterprise cost management are justified. Originality / Value: The scientific novelty of the obtained results lies in the identification and disclosure of directions for improving the company’s cost management methodology. It has been proven that cost management of an enterprise is a complex and dynamic process that involves achieving a high economic result of its operation. Practical Meaning: The practical significance lies in certain places and the role of costs in achieving production efficiency. It has been established that in order to form an effective cost management system for an enterprise, it is necessary to develop a management strategy, record and analyze costs in terms of their volume, dynamics, structure and responsibility centers, as well as identify trends in the level, volume and structure of costs per unit of output. Further Research: For the correct choice of the cost optimization method, it is necessary to take into account external and internal factors, the determination and assessment of the impact of which on the company’s costs are areas of further research.