The essence of the economic development of the enterprise is, in essence, the determination of costs for the result of production and their comparison. The production results of the enterprise can be diverse and include production and economic (financial) results of achievements in the fields of technical and social development. Comparison of costs and results of operations allows us to evaluate the integrated performance indicators of the functioning of the enterprise.
Under the current harsh conditions dictated by the economy of the market today, the main goal of the enterprise should be to achieve maximum profit. The remaining goals are subordinate to this main task, since the presence of profit serves as the basis and means for the further successful growth of other indicators.
We define the aggregate economic result of production as the difference between the income from sales of products (work, services) and the costs of their production and marketing, and we must not underestimate the management of costs at the enterprise.
Cost management at the enterprise is a means of achieving high economic results by production. All this cannot be reduced only to lower costs, but it is necessary to extend to all available controls.
Recently, the domestic science of enterprise cost management has moved forward, using the achievements of economically developed countries with market economies.
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 for effective business in a market economy.
One of the most pressing problems in most Russian enterprises is an unreasonable and almost uncontrolled increase in costs. To successfully solve these problems, enterprises need a clearly defined cost management program.
The cost management system at the enterprise is, firstly, the ability to save resources, and secondly, to fully maximize the return on them.
The cost management system at the enterprise as a discipline, as well as the basis for the practical activities of the chief managers and working specialists of the organization is based on the fundamentals of the enterprise economy, technology and organization of production, planning and accounting, management of working personnel, quality management of products, general analysis of the enterprise and to other areas of knowledge.
Cost management methods in an enterprise are a synthetic field of knowledge where terminology and methods taken from other disciplines can be used. Here sometimes completely different methods of enterprise operation can be combined here, their interconnectedness and influence on the most important thing - the final result of the enterprise’s work — profit, is revealed.
Cost management includes a whole range of activities aimed at overall cost reduction and control.
In general, the entire process of creating a cost management system in an enterprise should be divided into main stages.
1. Establishing a clear link between cost management and budget management systems.
2. Promising identification of areas of cost reduction.
3. Development of a plan of measures to reduce costs.
4. Implementation of developed schemes to reduce cost items at the enterprise.
Thus, the competent cost management at the enterprise allows not only to achieve increased profitability of production, thus contributing to the preservation of competitiveness, but also optimizes the actual work process during implementation.