Enterprise cost management
Students Name: Parkhomuk Anastasiia Oleksandrivna
Qualification Level: magister
Speciality: Business Economics
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: Svirzhevska A., Zahoretska O.Ya. (Supervisor). Enterprise cost management. Master’s qualification work. - Lviv Polytechnic National University, Lviv, 2022. Cost management is an important function of the economic mechanism of every enterprise, as the effectiveness of the organization’s functioning, its competitiveness, and development prospects depend significantly on their level. Market conditions increase the requirements for business efficiency, profit maximization, which can be achieved in two ways: either by increasing revenues by increasing product prices, or by optimizing costs. The process of cost management of the enterprise should not be one-time or short-term, but should be carried out continuously and systematically. As world experience shows, the majority of companies were able to achieve success in business thanks to the implementation of the cost management system. In order to obtain the greatest possible profit (ensure technical and socio-economic development), the enterprise must try to reduce production costs (cost) as much as possible. For this, it is necessary to constantly monitor the ratio between income and expenses related to the production of products. It is this ratio that is decisive for making managerial decisions about what products to produce, how and what services to provide. The first section of the work contains a review of the scientific and methodical literature that studies the definition of the issue. The second section of the work presents an analysis of the financial and economic status of the enterprise over the past three years. A detailed analysis of the cost of production and its individual types was carried out. In the third section, a study of the state and prospects for the development of car repair plants was carried out. In the fourth chapter, reserves for reducing the cost of production with the calculation of the economic effect of their implementation are considered. Recommendations are provided regarding reserves for reducing the cost of production at the enterprise. At the end of the work, relevant conclusions are drawn. The purpose of the master’s qualification work is to improve the cost management of the enterprise when forming the cost of production and to develop theoretical and applied principles for its reduction using the example of Zhmerensky Wagon Repair Plant "Express" LLC. To achieve the goal, the following tasks were solved: - theoretical aspects of modern cost management approaches are analyzed; - the analysis of the main indicators of the enterprise’s activity was carried out - a study of the current state and development prospects of car repair plants was carried out - suggestions for reducing the company’s costs were developed The object of the study is the process of cost management in the formation of the production cost of Zhmerensky wagon repair plant "Express" LLC. The subject of research is the theoretical and methodological and applied principles of cost management in the formation of the cost of production. This enterprise was chosen because its activities and problems are typical for machine-building enterprises in Ukraine. The value of the obtained results of this work lies in the economic substantiation of ways to increase the efficiency of cost management of enterprises. The work consists of an introduction, four chapters that contain paragraphs, conclusions and a list of used sources. The main content of the work is laid out on 84 pages. Key words - cost management, cost, evaluation, analysis, management costing articles. List of used literary sources. 1. Kozik, V. V. and others. (2017). Enterprise economics: a study guide. Lviv: Prostir - M, 406 p. 2. Grigor N.M., Klymenko M.I., Petrova R.S., Methodical recommendations on the formation of the cost of production (works, services) in industry. Kyiv State Institute of Economics of the Chemical Industry, K. — 2021. — 168 p. 3. Economic analysis: Education. guide./ M.I. Horbatyuk; under the editorship of Acad. NASU, prof. M.G. Chumachenko — K.: KNEU, 2019. — 540 p.