DIAGNOSIS OF THE MODERN METHODS EFFECTIVENESS OF COST MANAGEMENT IN ENTERPRISES

Abstract

The article finds out that one of the important economic problems causing global economic crises is mismanagement, which has manifested itself in both the real and financial sectors of the economy. Among the most important elements of such inefficient cost management there were identified the following factors: a large difference between the possible income in the case of successful actions of the head and the amount of losses in the case of erroneous decisions which have led to losses. The basic principles of cost management have been defined and it has been proved that their observance is sufficient to ensure the competitiveness of the enterprise and gain a leading position in the market. The basic concepts of cost management have beenanalysed, their advantages and disadvantages have been revealed and the offers on optimization of cost management for the purpose of the enterprises’ competitiveness increase in the conditions of globalization have been developed. It was in studies revealing that that mastering the Kaizen cost management approach allows all employees involved in production costs to contribute to reducing and managing these costs. It has been established that the main advantage of kaizen-costing is that it provides a constant reduction of costs and keeps them at a given level, and the main disadvantage consists in the need to motivate employees and corporate culture, supporting the involvement of staff in the organization. It has been proved that the improvement process can be successful only if the production conditions are favourable, and in this regard it is necessary to meet certain management requirements, in particular: to form a strategy and tactics of the enterprise; develop a leadership style that supports openness, trust and cooperation; maintain consistency of goals; develop an incentive system that will stimulate cooperation; implement existing staff training programs; strike a balance between short-term and long-term goals.