ENTERPRISE EXPENSES AND THEIR MANAGEMENT

Abstract

The article reveals the meaning of expenses and their management as an economic category that leads to the efficiency of the enterprise's economic activity, namely: to the expansion of production, increase of equity capital, which means an increase in the solvency of the enterprise. The purpose of this work is the study and analysis of theoretical approaches to the terms "costs", "cost management". Investigating the concepts of "expenses" and "expense management", the idea arises that costs are the value of using all types of resources (material, financial, labor, information) to achieve the enterprise's goal. The article noted that costs, either positively or negatively, affect the process of management decision-making regarding management at the enterprise. In this regard, it is necessary to deal in theory and practice with such an important problem as cost management, which is one of the components of the management system. The article examines expenses by their qualification groups, which are necessary for specialists to make decisions regarding the effective management of a business entity. Also, such concepts as "costs" and "expenditures" were studied because these concepts are distinguished in the economic literature according to the principle – costs refer to the structure of resources, and expenses – to operational activities and require funds for their payment. Part of the expenses related to the financial and investment activities of the enterprise are included in the cost price in accordance with the legislation. Therefore, the distribution of resources according to the areas of activity is an integral part of management. In economic literature, scientists interpret approaches to cost management in various aspects (integrative, dynamic, structural, situational, systemic approaches). Thus, cost management is a multifaceted, complex, purposeful process of cost formation, which ensures the achievement of the strategic goal of the enterprise's economic activity. Cost management methods, as "management tools" (models, methods and concepts), which are necessary for solving the economic activity of the enterprise, are also considered.