COST MANAGEMENT OF AN ECONOMIC ENTITY IN A MODERN BUSINESS CONDITIONS

DOI: 10.36871/ek.up.p.r.2021.02.02.007
UDC 657; 622

Authors

D. S. SHLYCHKOV,
Candidate of Economic Sciences, Associate Professor, Associate Professor of the Audit and Corporate Reporting Department, Financial University under the Government of Russia, Moscow, Russia

Abstract

The costs of the organization are the assets of the organization, including material values, labor re-sources, which transfer their value to finished products, work, services. In modern economic conditions of economic activity of an economic entity, the simple assignment of costs to the cost of production has lost its significance. This is due to the fact that it is necessary to satisfy the request of the end consumer through a price offer for the product, as well as the request of the state through the payment of taxes to the treasury. Consequently, management is required to implement measures to manage the costs of an economic entity. This article discusses the question of what methods can be used to implement cost management, and in addition, it presents a basic conceptual model for managing production processes of an economic entity and a model of a production cost management system using the example of the coal industry.

Keywords

costs, economic entity, mining industry, coal industry, business processes, IT, organization costs, value chain.