MANAGEMENT OF ENTERPRISE COSTS IN THE SYSTEM OF MINIMIZING THE RISKS OF ECONOMIC ACTIVITIES

Abstract

The article examines the cost management system as an important condition for the effective use of enterprise resources in terms of such components as organization, resource planning, budgeting, cost estimation and control. It was noted that the goal of cost management is not their minimization, which can cause a reduction in production, but more efficient use of the company's resources, their saving and maximization of returns at all stages of the production process. The value of the fundamental hierarchical data structure WBS (Work Breakdown Structure) to ensure such a result is substantiated. Approaches to the interpretation of the categories «costs» and «expenses» as an object of management of the studied system are considered. It was revealed that despite the lack of a single, approved approach to their essence and interrelation, the majority of theoreticians and practitioners identify «expenses» as material-in-kind, and «costs» as a value indicator. The importance of cost management in the context of minimizing the risk of overspending, which is the most common in economic activity and represents the probability of exceeding the production budget, is substantiated. Such a risk is due to the uncertainty of the external environment of the enterprise's functioning and may arise due to incorrect planning of costs, scope of work, etc. The article describes the algorithm for minimizing this risk as a series of sequential procedures, the main ones of which are the identification of areas of potential cost growth, the inclusion of unforeseen costs in the budget of the production project, and the development of a detailed risk management plan, which involves identifying, evaluating, mitigating potential risks and establishing them threshold values. Such a set of measures is aimed at cost optimization, and its effectiveness increases if the rate of growth of production and profit is faster than the rate of increase in costs. It is noted that one of the main conditions for the successful functioning of the enterprise's cost management system is the use of correct information at all its levels in the process of substantiating regulatory and planned costs, which will contribute to reducing the risk of overspending.