FORMATION OF THE COST MANAGEMENT SYSTEM OF A TRADING COMPANY

The activities of commercial enterprises in an economic imbalance requires the creation of an effective cost management system to make effective management decisions to optimize them. Terminological approaches to the definition of «cost management», which includes process and system approaches, are investigated. The interpretation of the economic category is given, so by cost management we mean a system of related functional, organizational and motivational elements, methods and mechanisms that form an integrity of management actions aimed at optimizing the level of company costs. It is determined that the activities of a trading company include external and internal environments, which together influence the adoption and implementation of management decisions to reduce costs. The cost management system of a trading company is proposed and the purpose, objects, subjects, tasks, functions and structural elements of the system are outlined. The developed cost management system will allow to systematize internal and external information flows in a set of functional subsystems and make effective management decisions to optimize the costs of the trading company. It is noted that an effective cost management system affects the formation of the financial result of the business structure and the distribution of net profit. Measures to optimize the costs of a commercial enterprise are proposed. It is expedient to create a reserve system to cover the costs of a commercial enterprise, which is aimed at: financing mandatory payments and covering costs; covering unforeseen costs and losses; in order to evenly distribute costs between periods. It is investigated that all reserves according to the method of reflection in the financial statements are divided into open and hidden. Reserves for optimization of enterprise costs are determined.