SEARCH AND IDENTIFICATION OF RESERVES FOR REDUCING COSTS IN INDUSTRIAL ENTERPRISES

Keywords: prime cost, production costs, ways, reserves, factors, cost reduction sources, indicators.

Abstract

The purpose of the article is to review theoretical and to search for practical reserves for reducing costs at the industrial enterprises. Industrial enterprises lead the main sector of the Ukrainian economy, but competition from Chinese manufacturers caused by the lowest market prices does not allow further development of this sector. Therefore, the Ukrainian industrial complex experiences difficult economic times. The article deals with the problems of cost formation as the main factor in the enterprise functioning and production efficiency and the main works of scientists who have studied this problem are disclosed in the artice. The issues of classification and different grouping of production costs of the enterprise to identify reserves and ways of the cost reduction are investigated in the article. The main reserves for the production costs reduction are considered. The main indicators of the reserves for the production cost reduction and their impact on financial and economic activity of PJSC “Zaporizhzhia Abrasive Plant” in 2014-2018 have been analyzed. The focus is made on the certainty and the application in practice of the more significant reserves to reduce the cost of industrial products, which will influence the competitiveness of this type of the goods and result in its being break-even on the market, or even better – its being cost-effective at all stages of the production cycle. Cost reduction is the main and first task of a manager of any enterprise. In the article the suggestions are made to reduce the prime cost of industrial products, namely due to the following: automation and modernization of the existing equipment; improvement of production technology for efficient use of resources; production of innovative products in order to increase production and sales volumes due to the reduced fixed costs; the use of economical production; labor productivity increase etc.

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Published
2020-07-09
How to Cite
Dubynina , S. M. (2020). SEARCH AND IDENTIFICATION OF RESERVES FOR REDUCING COSTS IN INDUSTRIAL ENTERPRISES. Bulletin of Zaporizhzhia National University. Economic Sciences, (2 (46), 15-21. Retrieved from http://journalsofznu.zp.ua/index.php/economics/article/view/357