Management of costs at the enterprise as an effective method of maintaining competitiveness

The essence of the economic development of an enterprise is, in essence, the definition of costs for the result of production and their comparison. The results of the enterprise's production can be diverse and include the production and economic (financial) results of achievements in the areas of technical and social development. Comparison of costs and performance results allows you to evaluate the complex performance indicators of the enterprise.
Under the current tough conditions dictated by the market economy of today, the main goal of the enterprise's activity should be to achieve maximum profit. The remaining goals are subordinated to this main task, since the presence of profit serves as a basis and means for the further successful growth of other indicators.

The total economic result of production in we define as the difference between the income from sales of products (work, services) and the costs of their production and marketing, you can not underestimate the management of costs in the enterprise.
Managing costs in an enterprise is a means of achieving a high economic result. All this can not be reduced only to a reduction in costs, but must be extended to all available controls.

Recently, domestic science, cost management at the enterprise has advanced, using the achievements of countries developed economically with a market economy.
Cost management at the enterprise pays special attention to such sections of the internal economies of the enterprise as accounting and financial analysis. All this is undoubtedly important, but it will not be enough to effectively conduct business in a market economy.

One of the most pressing problems in most Russian enterprises is an unreasonable and almost uncontrollable increase in costs. To successfully solve these problems, enterprises need a clearly formulated cost management program.
The system of cost management in the enterprise is, first, the ability to save resources, and secondly, to maximize the return on them.

The system of cost management at the enterprise as an academic discipline, as well as the basis of practical activity of the chief managers and working specialists of the organization is based on the basics of the enterprise's economy, technology and production organization , planning and accounting, management of working personnel, quality management of the output, And other fields of knowledge.
Cost management methods at the enterprise are a synthetic area of knowledge, where terminology and methods taken from other disciplines can be used. Here sometimes completely different methods of work of the enterprise can be connected, their interconnectedness and influence on the most important thing is revealed - the final result of the work of enterprises is profit.
Cost management includes a whole range of activities aimed at overall reduction and cost control.

In general, the whole process of creating a cost management system at an enterprise should be broken down into main stages.

1. Establish a clear link between cost management systems and budget management.

2.Perspektivnoe determination of directions of cost reduction.

3.Development of the plan of measures to reduce costs.

4. Implementation of the developed schemes to reduce the cost of articles in the enterprise.

Thus, competent management of expenses at the enterprise allows not only to achieve an increase in the profitability of production, thus contributing to the preservation of competitiveness, but also optimizes the process of work in the course of implementation.