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Accounting and Analytical Provision of the Process of Cost Management and Its Optimization

Journal: Scientific Bulletin of Mukachevo State University. Series “Economics” (Vol.4, No. 2)

Publication Date:

Authors : ; ;

Page : 153-157

Keywords : costs; cost; cost management; economic-mathematical modeling; simplex-method;

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The economic efficiency of the activity depends on the level of security of the enterprise by all kinds of resources and their rational use. The relevance of the research on the chosen subject, its theoretical and practical significance is related to the growing role of cost and cost management as an instrument that increases the competitiveness of domestic producers in the conditions of economic globalization. The basis of the successful development of the enterprise is an analysis of production costs, which is carried out in order to control the use of resources in the economic activities of the enterprise and the search for ways to reduce the cost of production and increase profits. The purpose of this article is to systematize the theoretical provisions on optimization of production costs and to find the most effective way of using existing resources of the enterprise. The article focuses on the existing definitions of "cost management". Despite the fact that much attention has been paid to the costs in the writings of scientists, the problems of their management have not been fully addressed to date. Cost-management approaches developed at the enterprise make it possible to determine the main direction of the use of available resources to achieve promising outcomes. Improvement of cost management system is aimed at the constant search and identification of reserves of resource savings, costing, planning, stimulating resource conservation and reducing costs in order to increase the efficiency of financial and economic activity of the enterprise. Also, the search of the optimal size of production costs of the enterprise by means of economic-mathematical modeling has been carried out in the article in order to reduce the production cost. On the basis of the received accounting information on the results of the company's activity, a linear model has been developed that allows maximizing profits through the most efficient use of labor, material and financial resources, as well as production capacities of an agricultural enterprise. The calculation of the optimal volume of production costs for the main types of crop production has been calculated. The practical significance of the results obtained is to enable the identification and use of internal reserves of an enterprise to increase the efficiency of production and profitability. Prospects for further research are to analyze the factors that affect the costs of agribusiness and find ways to reduce them.

Last modified: 2021-08-19 19:04:44