REDUCING PRODUCTION COSTS – THE FACTOR OF ECONOMIC SAFETY OF THE ENTERPRISE
Journal Title: Сталий розвиток економіки - Year 2018, Vol 40, Issue 3
Abstract
Purpose. The aim of the article is the analysis of the influence of elements of the cost of production on the sales price and the financial result, which underlies the economic security of the enterprise. Methodology of research. The method of theoretical generalization and comparison became the basis for studying the influence of elements of the cost of production on the price of sales and the financial result that underlies the economic security of the enterprise. Logical method, methods of induction and deduction, grouping and generalization were the basis for considering the concepts of “costs”, “cost management”, etc. The method of factor deterministic analysis is used in assessing the factors of influence on the level of economic security of the enterprise. The method of economical and mathematical modeling is used in constructing a factor model of the influence of factors on the formation of the cost of production. The monographic method describes the results of the study. Findings. The essence of production costs is outlined. It is emphasized on the necessity of factor analysis of the cost of production as one of the tools of the mechanism for management of expenses of business entities. The influence of elements of the product cost price on the sales price and the financial result, which underlies the economic security of the enterprise, is analyzed. The structure of expenses in the cost price of products is considered. The dynamics of indicators of net income of cost and profit of the enterprise is studied. The level of economic security of the enterprise by the partial indicators is established. The indicators of profit, cost and profitability of the enterprise are determined on condition of reduction of the production cost. Originality. The necessity to create a unified, rational, clear and uninterrupted functioning of the cost management system, which guarantees the proper level of economic security of the enterprise, is substantiated. Practical value. The main provisions of this study in the form of proposals and methodological recommendations can be used in assessing the level of economic security of the enterprise.
Authors and Affiliations
Mykhailo Zhadan, Andrii Bazhanov
Keywords
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