Kvasnytska Raisa, Doctor of Economics, Professor, Professor of Department of Finance, Banking and Insurance, Khmelnytskyi National University, Khmelnitskyi, Ukraine

ORCID ID: 0000-0002-0443-9390
e-mail: kvasnytskar@khmnu.edu.ua

Theoretical Basis of Cost Management of Enterprise

Abstract. Introduction. The main factor in ensuring the competitive advantages of the effective functioning of any enterprise, its stable economic development, is the improvement of the efficiency and optimization of the enterprise’s costs. Therefore, in order to achieve a high economic and financial result of activity, enterprises of various industries and spheres of operation need effective cost management. Cost management is aimed at the constant search and identification of resource saving reserves, stimulation of resource conservation and cost reduction in order to obtain the effect of commercial calculation based on the results of the enterprise’s activities.

Purpose. Research of scientific approaches of various scientists to the definition of the concept of «cost management», determination of cost management functions and systematization of cost management principles at the enterprise.

Results. Substantiates the author’s position regarding the essence of this concept of «cost management», which should be considered as an integral system of organizational and functional support and a methodological toolkit of influencing the process of spending, which includes managerial actions , the purpose of which is for the enterprise to obtain a high positive financial result of its activity. It was determined, that cost management at the enterprise involves the performance of general functions inherent in the management of any object and specific functions. It is justified, that consideration of the principles of cost management should be carried out through a thorough coverage of their substantive basis with the disclosure of the opportunities that the enterprise receives in cost management, subject to compliance with one or another principle. The main principles of cost management of the enterprise are summarized, which include the following principles: system-complex approach to cost management; intersubject feedback; resource reservation; continuity of cost management for the production and sale of a specific product; economic validity and reliability of information about costs; the adequacy of the results of management actions regarding costs; independence.

Conclusions. The author’s position on the essence of cost management is outlined in the article, the general and specific functions of cost management are detailed, and the principles of the cost management process at the enterprise are detailed. It is ensuring maximum compliance of the specified principles at the enterprise that enables the effectiveness of cost management, which is part of the general management system of the enterprise and reflects the efficiency of economic activity.

Keywords: costs, enterprise cost management, cost management functions, principles of cost management.

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