Cost management as a guarantee of effective operation of the enterprise

Results of financial and economic activitiesenterprises determine, in the first place, costs, and it does not matter what activities the company does, what organizational and legal form it has. It is the amount of costs that is the determining element in the analysis and calculation of the key performance indicators. Therefore, it is important that the management of costs in the business entity is a single and maximally coordinated process.

He assumes control overthe emergence of costs at the stage of planning financial and economic activities. In addition, business processes must be structured to manage costs in the enterprise. This allows you to enter control into the system. It should be noted that it will determine the organizational structure of the entire enterprise.

Not always in the company needs a systemcost management. It will be effective only if it can have a real impact on the company's performance, that is, when the goods, products and services of the enterprise are profitable.

Management of costs, among other things,should take into account the nature of costs. They can be both external and internal. Specialists in the field of cost management advise, first of all, to reduce external costs (raw materials, materials, interest on loans, etc.), since they are much less flexible than internal ones (wages and general economic expenses). In addition to the above classification, costs, depending on the volume of output, are conditional-permanent, conditional-variable and mixed. Usually, for cost management, a method is used, such as calculating, which can be performed either by elements or by costing items. Management of costs in the enterprise can be carried out using a variety of methods of strategic and operational management. Everything depends on the management objectives and, of course, on the availability of the conditions necessary for their application. The control method is an algorithm of actions.

It has become quite popular to manage costs withusing ABC-analysis. Its essence consists in the following: costing on functional kinds of activity of the enterprise, for example, on manufacture, marketing, sale, etc. are exposed. Thanks to this, you can see not only the cost of goods, but also what level of costs are accounted for by certain business processes.

It should be noted that an important place in the managementFactor analysis should be cost-intensive. It allows you to determine the main cost-creating factors, as well as the extent to which they affect the total cost and dependency. This makes it possible to manage the costs of quality assurance in the long run, as well as directly impact the total costs of the organization.

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