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A cost management mechanism of meat processing enterprises

Author(s) Stetsyuk S.S., Postgraduate, ,
Category Economics
year 2013 issue Випуск №83. Частина 2
pages 253-261 index UDK 338.435
Abstract The basis of the formation of profits and control of measures of economic efficiency of enterprises is the ability to carry out rational and reasonable business expenses. One of the directions of realization of this strategy will be the creation of enterprises and the introduction of an adequate system of control spending. The management process includes planning, motivation, coordination, management, monitoring, which being in constant continuous communication with each other, provide its recurrence. Depending on the stage of the life cycle of the economic management subject and on its objectives (growth, stabilization, survival), leadership forms a chain of tasks, execution of which and time adjustment should lead to the expected results. Also, one of the directions of process optimization of cost management of the enterprise is their structuring of functional centers, the so-called "centers of responsibility." There are three main types of such centers, "cost center", "revenue center " and "profit center." Unfortunately, in practice, reduce of costs may not always be the key to increasing profits, and sometimes even prevents it. Even in the case of an effective functioning of the "cost centers", the effectiveness of the activities may be reduced due to imperfect production processes and implementation. Therefore, a major thing in management of expenses must be not their reduction but their optimization. The motivation that stimulates the representatives of the "responsibility centers" to the effective management of costs is necessary too. Timely control, the results of which form the basis for the next term expenditure estimations of the activities of such centers is also important as well as the distribution of remuneration, or, conversely, punishment of responsible people. Thus, complex combination of management methods and influence in the implementation of economic activity of meat processing enterprises in the overall result should lead to a positive and in the dynamics growing final result.
Key words meat processing enterprises, profit, cost management, motivation, strategy of enterprise.
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