MANAGEMENT OF PRODUCTION COSTS OF BUSINESS ENTITIES

The current economic situation in Ukraine and in the world is characterized by dynamism, a high level of competition and the presence of military risks. Changing the location of enterprises, external and internal migration of labor, disruption of sustainable logistics, etc. change the nature and structure of production costs. Therefore, the problem of cost management of production entities remains relevant and requires constant monitoring and prompt resolution. Despite the solid foundation of knowledge on solving the problem of cost management of business entities, certain issues of their classification, assessment and minimization require further research. In particular, this concernschoosing the optimal cost management method depending on the factors influencing business activities. The purpose of the articleis a study of the theoretical and practical principles of cost management, existing cost management methods depending on the goals and conditions of doing business. Control and effective management of production costs are key to achieving competitiveness of a business entity in the market, since cost optimization contributes to reducing the cost of production and increasing profitability. Correct distribution of costs and their classification allow for more accurate planning and forecasting of financial results. Reducing production costs, especially variable ones, as well as implementing efficient production processes help enterprises increase their economic efficiency and stability in the market. As a result, effective management of production costs allows not only to improve financial performance, but also to ensure sustainable development of the enterprise in a competitive environment. Each enterprise, depending on the organizational structure, production size, available production and support personnel, and market position, can choose the optimal method of cost management, guided by its own capabilities and goals. InDepending on the combination of criteria that characterize the business entity (organizational structure, enterprise size, level of training of labor resources, market position, life cycle stage), a combination of several methods should be used for effective cost management.