COST MANAGEMENT IN THE CONTEXT OF THE DIGITAL ECONOMY: CONTEMPORARY MODELS AND OPTIMIZATION TOOLS

Abstract

The purpose of this article is to investigate the transformation of enterprise cost management systems under the influence of the digital economy and to substantiate the need for adapting classical cost models to the challenges of digitalization. The relevance of the research lies in the increasing complexity of cost structures and the necessity for enterprises to integrate digital technologies to maintain financial sustainability and competitiveness. A comparative analysis is conducted among the four primary models: Activity-Based Costing (ABC), Target Costing, Lean Management, and Total Cost of Ownership (TCO). Each model is assessed against criteria such as flexibility, accuracy, strategic relevance, and adaptability to digital technologies. The limitations of their traditional forms are highlighted, demonstrating the necessity for integration with digital innovations. The research substantiates the effectiveness of implementing modern digital tools such as Enterprise Resource Planning (ERP) systems, Business Intelligence (BI) platforms, Robotic Process Automation (RPA), blockchain technologies, cloud computing services, and Artificial Intelligence (AI) algorithms into classical cost management approaches. The integration of ERP systems into ABC enhances real-time cost tracking by activity centers; BI tools strengthen Target Costing methodologies through predictive analytics; RPA optimizes administrative processes within Lean Management; blockchain solutions improve transparency and reduce transaction costs within TCO frameworks; and AI algorithms allow for dynamic forecasting, anomaly detection, and optimization of cost-related decisions. Based on the conducted analysis, a conceptual framework is proposed for the development of an integrated, adaptive, and analytically oriented cost management system. This framework combines the strengths of classical models with the technological advancements of the digital economy, enabling enterprises to maintain financial efficiency and strategic agility. The article concludes that digital transformation requires a paradigm shift in cost management practices. Enterprises must move beyond static cost accounting to adopt dynamic, data-driven, and flexible models capable of responding to the rapid technological and market changes.