The mechanism of rational cost management of "Visazh-Zakhid" LLC
Students Name: Khimiak Marian Ihorovych
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: Master’s qualification work offers to consider such an always relevant topic as cost optimization. By paying enough attention to cost accounting and analysis, it is possible to have enough analytical information with which to regulate the production process more effectively and better evaluate its effectiveness. It follows from the above that at the present stage of development of the enterprise economy, costs are an important aspect of its economic sustainability, competitiveness, and production efficiency. Maintaining the optimal level of costs is the main condition for its survival and development. The object of study of the master’s qualification work is the Limited Liability Company "Visage-West". The purpose of the work is to study the process of cost management of Limited Liability Company "Visage-West". In accordance with the purpose of the study, the following tasks are set: (1) to study the theoretical foundations and methodological approaches and indicators to assess the performance of enterprises; (2) to conduct a general analysis of the financial condition of the Limited Liability Company "Visage-West", namely to study the structure and dynamics of income and expenses, financial results, performance indicators; (3) to conduct a SWOT analysis of the enterprise; (4) to forecast the dynamics of the cost of sales and profit from operating activities of the enterprise for the future. The work consists of three sections: theoretical and analytical, research and prognostic and recommendation parts. The first section considers the concept of cost management, analyzes the feasibility and relevance of cost optimization for the Limited Liability Company "Visage-West", analyzes the efficiency of this enterprise for 2019-2021. For this purpose, an analysis of its structure and dynamics of assets, capital and liabilities, income, expenses and financial results, profitability indicators and other indicators characterizing the financial condition of the enterprise was carried out. In the second section, the SWOT-analysis of Limited Liability Company "Visage-West" was conducted to determine the strategic directions of financial and economic further development, forecasting the cost of sales and profit from operating activities of the enterprise for the next 2 years, which made it possible to look at the possible impact on the production profitability of the enterprise, modeling the impact of components on the overall efficiency of the enterprise by factor analysis using the logarithmic method. In the third section, the possibilities of optimizing the costs of Limited Liability Company "Visage-West" by reducing various components of administrative and sales costs are investigated. Administrative costs were reduced by reducing travel and other administrative costs, sales costs were changed by optimizing logistics costs and reducing the number of leased warehouses and related costs. The proposed solutions will increase the company’s revenues and have a positive impact on profitability. Keywords: enterprise asset and liability management, enterprise efficiency, cost management, costs, profit, profitability. References: 1. Alekseev I.V., Moroz A.S., Romaniv E.M., Khoma I.B. Financial analysis: technique of calculations and modeling of economic situations: Study guide. - Lviv: Beskyd Bit Publishing House, 2003. 152 p. 2. Khoma I.B. Economic and mathematical methods of analysis of enterprises’ activity: textbook / I.B. Khoma, V.V. Turko. - 2nd ed. - Lviv: Lviv Polytechnic Publishing House, 2012. 328 p. 3. Frolenko R.V. Integrated system of strategic cost management of industrial enterprises / Innovative economy. All-Ukrainian scientific and production journal. - 2010 - №15 - P. 22 - 26. 4. Popov O. Cost management / Popov O. // Economic Encyclopedia: In 3 volumes. Vol. 3 - K. : Publishing center "Academy", 2002. - 952 p. 5. Bilousov I.I. Methods of production cost accounting and costing / I.I. Bilousov // Accounting and audit. - 2006. - № 9. - P. 3-5. 6. Kondrashova T.M. Improvement of the cost management system at the enterprises of Ukraine by means of costing / T.M. Kondrashova, G.V. Korshunevska // Ekonomika Kryma. - 2011. - № 2 (35). - С. 282-287. 7. Chubka O.M. Theoretical aspects of the study of financial stability of the enterprise and ways to improve it / O.M. Rudnytska, O.M. Chubka // Institute for Regional Studies. - Lviv, 2009. - Issue 4 (78). - P. 335-343.