THE COST REDUCTION - THE MAIN CONDITION FOR SUSTAINABLE DEVELOPMENT OF INDUSTRIAL ENTERPRISES

Valentina Vybornova; Svetlana Vybornova; Liudmila Romanovich; Marina Romanovich

doi:10.5937/jaes12-7166

Valentina Vybornova Dr Valentina Vybornova Belgorod State Technological University named after V.G. Shukhov
Svetlana Vybornova Dr Svetlana Vybornova Belgorod State Technological University named after V.G. Shukhov
Liudmila Romanovich Dr Liudmila Romanovich Belgorod State Technological University named after V.G. Shukhov
Marina Romanovich Marina Romanovich Belgorod State Technological University named after V.G. Shukhov.

DOI: https://doi.org/10.5937/jaes12-7166

Keywords: Cost structure, Cost of production, Profits, Earnings, Management, Company,

Abstract

The deep and widespread changes in industry which are leads scientific-and-technological advance and systemic changes implemented in the course of from the global financial crisis, economic instability in the country and the world confront enterprise management tasks firm survival in difficult market conditions. As practice shows, the cornerstone of survivals- is a stationary state of company. The cornerstone is consider to entity 's ability of the enterprise to pay obligations in full and on time , and be capable of self-financing of the projects planned for the development of the enterprise. Huge reserve to increase the financial stability of the enterprise carries the job of managing the cost of production. The cost reduction gives financial safety margin which can be used for development of the enterprise and to strengthen its market position.