Management costs as a guarantee of the effective functioning of the enterprise

Results of financial-economic activity of the company is primarily determined by the cost, no matter what the activity is engaged in the company, which has a legal form.That is the amount of cost is a determining element in the analysis and calculation of key performance indicators.It is therefore important to control costs in a business entity is a unified and coordinated process as much as possible.It presupposes the existence of control over the appearance of the costs at the stage of the planning of financial and economic activity.Furthermore, to control costs at the plant should be structured business processes.This allows the management system.It should be noted that it will determine the organizational structure of the enterprise.

is not always necessary for the enterprise cost management system.It will be effective only if able to have a real impact on the performance of the company, that is, when the goods, products and services businesses will be profitable.

management costs, among other things, should take into account the nature of the costs.They can be both external and internal.Experts in the field of cost management advise, first of all, is to reduce the external costs (raw materials, interest on loans, etc.), since they are much less flexible than domestic (salaries and general expenses).In addition to the above classification, the cost, depending on the production volume, are conventionally constant, semi-variable, and mixed.Typically, cost management used a method such as calculation of which can be performed on the elements and objects of calculation.Cost management in the enterprise can be accomplished through a variety of methods of strategic and operational management.It all depends on the purpose of management and, of course, the availability of the necessary conditions for their use.Under the method of management is understood sequence of actions.Pretty cost management has become popular with the ABC analysis.Its essence is as follows: calculation of the costs are subject to a functional activity of the enterprise, for example, for the production, marketing, sales, etc.This makes visible not only the cost of goods, but also what level of costs falls on those or other business processes.

should be noted that an important role in the management of costs should take the factor analysis.It allows you to identify the main cost driver, as well as their impact on the total amount of costs and the relationship between them.This makes it possible to produce cost management to ensure quality in the long term, and have a direct impact on the amount of the total costs of the organization.