COST EFFICIENCY ANALYSIS

A study of the economic category «costs» was conducted. It is noted that all existing approaches to the definition of the essence of this category in the professional literature are grouped as follows: resource-production, financial-monetary, economic, accounting, managerial, marketing, analytical regulatory and legal. It is emphasized that there are not only certain differences, but also interdependencies between different approaches to defining the essence of «costs». This primarily concerns the resource-production and financial-monetary approaches. Thus, within both approaches, «costs» are considered as a monetary expression of resources. But at the same time, within the framework of the financial and monetary approach, not only the process of production of products, but also the processes of implementation, management, and organization are investigated. It is emphasized that when considering «costs» as an object of analysis in the cost management system, it is important to highlight the following: costs are the cost of economic resources used in the process of production and sale of products; expenses are a factor in the formation of profit. The author selected technical and labor resources from the entire set of resources. This is justified by the fact that they are an active part of the company's potential, which primarily forms the quantitative and qualitative characteristics of the final results of the activity. As a criterion indicator in the process of cost effectiveness analysis, the inverse ratio to the volume of production and sale of products, the level of profit, is accepted. A 9-factor model of the analysis of the efficiency of production costs based on the «output/cost» ratio is proposed. Unlike others, the model allows taking into account the impact of changes in the efficiency of using two resources at once: labor and technical. The model allows you to simultaneously take into account the following factors: the number of workers, the working time fund, labor productivity, the cost of fixed assets (including their active part), as well as the efficiency of their use. The proposed model, depending on the purpose of the analysis, can be expanded and modified into a «profit/cost» ratio by including the following factors in it: the ratio of sold and manufactured products; the share of high-quality products in the total volume of sales, profitability of turnover, specific weight of net profit.