Defining the Essence of Costs and their Management Processes

N. I. YarkovaDonbas National Academy of Civil Engeneering and ArchitectureI. G. SmeltersDonbas National Academy of Civil Engeneering and Architecture
Abstract: The current state of the domestic economic system is not quite in a favorable state, which entails a desire to increase the competitiveness of enterprises in the domestic and foreign markets. To this end, the management staff pays special attention to the cost management processes in order to optimize them. To create an effective cost management system, modern foreign and domestic economic concepts are analyzed, among which the following are highlighted: the concept of cost-forming factors, the concept of value added, the concept of value chain, the concept of opportunity costs, the concept of transaction costs, the ABC concept, the concept of strategic positioning, and their brief theoretical characteristics are given. It has been determined, that the formation and improvement of the mechanism of cost management is of individual nature and depends on the industry, production and other characteristics of the enterprise.

Keywords: costs, expenses, cost management, economic concepts.

Pages: 229-234.

PDF

For citation: Yarkova, N. I.; Smelters, I. G. Defining the Essence of Costs and their Management Processes. – Text : electronic. – In: Economics of Civil Engineering and Municipal Economy. – 2021. – Vol. 17, N 4. – Р. 229-234. – URL: https://donnasa.ru/publish_house/journals/esgh/2021-4/09_yarkova_smelters.pdf (date of access: 21.11.2024). – ISSN 1993-3509.


Issue Cover
Vol. 17, N 4 (2021)
Journal: Economics of Civil Engineering and Municipal Economy
Publish house: Donbas National Academy of Civil Engineering and Architecture