MANAGEMENT OF OPERATING COSTS OF THE EXTRACTIVE ENTERPRISE: ACCOUNTING AND ANALYTICAL ASPECT

Abstract

The article is devoted to topical issues of management of operating costs of the extractive enterprise. The necessity of research of the reasons of unproductive operating expenses for maintenance of qualitative characteristics of results of manufacture and reception of expected profit is proved. Analysis of the structure of operating costs will determine the productive and unproductive operating costs, an element that significantly affects the financial result from operating activities. Scientists have studied the classification of operating costs, focused on optimizing the amount of material costs and labor costs and indicated among the priority goals of operating costs management is finding ways to reduce material and labor intensity based on accounting automation. Despite the significant contribution of scientists to the development of methods of accounting for operating costs, additional research is needed to reduce the productivity of operating costs on the example of mining companies for their components to maintain the desired amount of profit and product quality requirements. A statistical analysis of the structure of production costs of mining enterprises and quarrying in 2012-2019, which allowed to establish the dominant component – material costs and costs of services used in production. The structure of operating costs and cost of sales was studied on the example of five enterprises of the extractive industry and quarry development. The lack of a unified approach to cost formation has been clarified, as there are both material and salary costs. It is established that the main unproductive costs of other operating activities are the costs of forming reserves for doubtful debts, impairment losses and damage to assets. Operating cost management involves assessing the impact of operating costs on the financial result from operating activities, analysis of the causes of negative financial results in order to identify components of unproductive costs to further reduce them in subsequent reporting periods and achieve the optimal ratio between operating costs: cost, administrative and marketing expenses and other operating expenses.