ECONOMIC ESSENCE OF PRODUCTION COSTS AND THEIR ROLE IN THE SYSTEM OF MANAGEMENT OF AGRICULTURAL ENTERPRISES

Abstract

The article is devoted to the study of the generalization of the theoretical foundations of determining the essence of production costs, the impact of the formation of production costs on economic efficiency in the production of agricultural products. The versatility of the concept of production costs as a system of influencing the purposefulness of the management of the formation of costs, their types, places, the implementation of constant control over their level. Approaches to the classification of production costs are revealed, the conditions of formation of production costs are analyzed, the factors that have an impact on the value of production costs are determined, external and internal factors of formation of costs in agriculture are singled out. The components of costs that characterize the conditions and efficiency of agricultural production are analyzed, as well as substantiated approaches to their reduction as an integral part of increasing production efficiency. The transformation of the agro-industrial complex now into a highly efficient competitive sector of the state's economy is a question of the country's ability to integrate agricultural producers into the world agricultural market. To ensure the improvement of economic efficiency of agricultural production, improving the quality of agricultural products, the main aspects in achieving these issues are the efficient use of production resources, the organization of production cost management. All this strengthens the requirements for economic management, the choice of the most rational options for the structure of production, its location, specialization and concentration. In a market economy, the main goal of the agro-industrial complex now is to constantly increase production, which means, above all, increasing production while reducing the cost of production of its unit. Therefore, it is necessary to determine the optimal structure and specialization of production of the enterprise that is to find the optimal rational solutions of planning and economic tasks from many possible options of solutions.