Godz Y. V., PhD Goncharova Y. S.

Oles Honchar Dnipropetrovsk National University, Ukraine

COSTS MANAGEMENT: ANALYSIS OF INFLUENCE ON ENTERPRISE PERFORMANCE

Statement of the problem.  In modern conditions of the development of market relations in the Ukrainian economy the different aspects of enterprise activity-based management have changed fundamentally. Enterprise performance depends to a large extent on the level of economic independence, which is determined by its competitive ability, operation efficiency and stable positions on the market. Thus all enterprises should develop and implement the management decisions, which would stimulate maximum profit earning. In market economy the principle of profit maximization can be implemented on conditions that use of available resources of enterprise is proportional and well thought-out. For this purpose it is necessary to define clearly the structure of costs and to trace their time-history that will allow to work out the complex of the events for costs reduction and profit increase.

Analysis of the latest researches and publications.  Some aspects of cost management are explored by the renowned Ukrainian economists such as F. Butinets, S. Golov, T. Karpova, Y. Velikiy, G. Partin, A. Cherep and other.

Basic material.  Enterprise Cost Management envisages implementation of all functions of management, i.e. functions must be realized through the elements of administrative process: prognostication and planning, setting of norms, organization, calculation, stimulation, motivation, account and analysis, and also adjusting and the control of costs.

Implementation of all functions of management means replacing the managing subsystem (management subject) on the managed subsystem (management object). The subjects of cost management are leaders, managers, specialists, accountants of enterprise: they participate in execution separate functions or custom costs controls. Management objects are costs on production, realization of products (works).

Thus the cost management system can be defined as the complex of elements, methods and mechanisms that operates within the confines of functional duties and form certain integrity and by means of which the processes of supply and use of resources are generalized, clearly put aims are succeeded, and tactical and strategic plans are realized. Thus the aim of cost management system is the managerial control and prognostication of costs, choice of effective ways of enterprise development, acceptance of operative administrative decisions.

There are such requirements to formation of cost management system: system approach to cost management; orientation on the strategic aims of enterprise development; the complex character of administrative decisions; unity of methods on different levels of cost management; introduction of effective methods of the cost cutting etc.

Conclusion.  Thus cost management of enterprise consists in the directed adjusting of cost formation process to increase the eventual result of activity. There is the direct correlation: the lower is a level of costs on the unit of product manufacturing, the higher is efficiency of enterprise activity. Therefore one of the foreground directions to increase the efficiency of enterprise performance is creation and realization of effective cost management system in modern conditions that must reduce the size of separate costs components and set effective ratio between these components.

The list of references:

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2. Череп А. В. Управління витратами суб’єктів господарювання. Ч. 1: монографія / А. В. Череп. –2-ге вид., стереотип. – Х.: ІНЖЕК, 2007. – 368 с.