Keywords
cost structure
types of expenses
reserves
business
competition
investment
How to Cite
Abstract
The article discusses cost-effective models and methods (classical and modern), as well as approaches. We know that any business activity is aimed at making a profit, increasing capital. But to add value, you must first invest in something, and it is these investments that limit the potential efficiency of a business. And in today’s highly competitive environment, businesses that are able to run their business most efficiently will survive and thrive. One of the main criteria of business efficiency is the profit received. Cost reduction is the most important resource to optimize profits, reduce product costs and consequently increase the competitiveness and financial stability of the enterprise. This is why cost management is so important. In addition are described the procedures for improving the cost management system, justifying the choice of cost management priorities, cost reduction measures and identifying problems in their implementation.
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