APPROACHES TO THE FORMATION OF THE COST MANAGEMENT SYSTEM AT THE ENTERPRISE

Abstract

In the conditions of constant changes in the world economy, modernization of technologies and the growth of competition, effective cost management becomes a key element of the company's strategy. The article examines various approaches and methodologies of cost management at the enterprise. The purpose of this study is to carefully study and analyze various approaches to the formation of the cost management system at the enterprise in order to identify the optimal strategies for achieving the efficiency and sustainability of financial management. It found that using traditional methods such as budgeting and cost tracking, businesses can provide a structured approach to financial planning. Innovative approaches are also analyzed, in particular, the use of modern information systems to automate accounting and cost analysis, which provides operational information and helps avoid errors. It was determined that a strategic approach to cost management is necessary to achieve the long-term goals of the enterprise and to integrate effective cost management into the overall business strategy. Lean and Six Sigma approaches, target cost management, as well as cost significance management through a combination of different strategies and methodologies are discussed in detail. It has been proven that effective cost management is not a static, but a dynamic process, and businesses can achieve success by using flexibility and combinatorics of different approaches depending on their specific needs and conditions. The approaches considered in the work, regardless of their specifics, have a common goal - to ensure the stability and success of the enterprise through careful management of financial resources. Given the diversity of cost drivers and the ever-changing economy, it's important to recognize that there is no one-size-fits-all approach. Flexibility and adaptability in cost management allow enterprises to effectively adapt to changes and remain competitive in unpredictable business conditions. Thus, today's businesses must strive to improve their cost management systems, given the vast array of tools and strategies at their disposal.