FORMATION OF COSTS AT THE ENTERPRISES OF CONSTRUCTION MATERIALS

This article is devoted to the analysis of the process of formation of costs at industrial enterprises. Particular emphasis was made on the analysis of the process of cost formation in the enterprises that operate in the industry of building materials production. The article covered the concept of cost management process of an industrial enterprise and defined the importance of this process. In addition, the article was devoted to finding, analyzing and defining traditional methods of cost formation in industrial enterprises. Among the traditional methods were identified such basic ones as standard-cost method, Job order cost system, process cost system and method based on production area. In addition to traditional methods, modern methods of managing the process of cost formation at producing enterprises have been identified. The article defines such modern costing methods as ABC method, direct-costing, standard-cost, target-costing and kaizen-costing methods. The purpose of the article was also to determine the feasibility of using each of the methods, both modern and traditional, in enterprises, depending on the specifics of the industry in which they operate. Also, the writing of the article was focused on identifying the characteristics of the industry of building materials production, as well as the impact of these features on the method of cost formation in the enterprises of the industry. One of the goals of this article was to identify the most cost-effective methods of cost management in the industry of construction materials and to show the ability of its combination in order to achieve better results, taking into account the specific features of the industry. At the end of the article there were offered some recommendations of more efficient usage of cost formation methods at enterprises operating in the field of construction materials production in Ukraine.