IDENTIFICATION OF TRANSACTION COST MANAGEMENT FUNCTIONS

Abstract

The basis of information support in the field of economic relations is an accounting system adequate to modern needs. However, such an accounting system as the basis of information support and accounting as one of the functions of management does not create sufficient prerequisites to ensure the effectiveness of the management process, including transaction cost management. Motivation in the process of managing transaction costs involves the use of moral and material incentives for employees of the entity, namely monetary rewards, recognition of achievements, promotion, providing conditions for the manifestation of creative potential in order to prevent deviant behaviour, the consequences of which are the search for economic benefits from the resources of the business units. In addition, the function of motivation should extend to the business partners of the entity and consider their interests, goals and business reputation. The indicated information should form sufficient grounds for the motivational component of business negotiations and create conditions for obtaining the desired result. Effective transaction cost management is a prerequisite for the competitiveness of products, goods, works, services, and the business unit that produces, sells and aims to ensure a lasting plateau of financial stability. This dependence exists since transaction costs both create conditions for further growth of profits generated by the entity and can reduce it under opportunistic behaviour. Optimization of transaction costs can be achieved not only through their accounting, control, analysis, but also the performance of other management functions, the list of which, as evidenced by the study of recent publications, is not definitively defined. This paper proves that transaction cost management is a mandatory component of the dynamic management process of the entity, which should be harmonized with the overall management process and meet its main goal – to achieve high economic performance