Analysis of production cost as an important link of effective management of industrial enterprises

Abstract

The most important element of cost management system is the analysis, the main aim of which is information security, a comprehensive assessment of the achieved results and the rationale for management decisions on their further rationalization. This goal is accomplished by solving analytical tasks, grouped in three blocks of the research: strategic analysis of the current (operational) analysis of retrospective (final) analysis. Selection of key performance indicators depends on the chosen strategy of the company and method of forming the competitive advantages of its products to the market. At the same time this can be used as an absolute value and relative to the amount of the invested costs. To improve the operational and the final control of expenses for manufacture of the enterprises of machine building industry there has been developed system of relative analytical indicators, which allows you to more fully assess the effectiveness of management not only by production costs, but also costs of the period. The main advantages of the proposed system of relative indicators are their systematization and cohesion of the group of indicators that complement each other.