DIRECTIONS OF ENTERPRISES’ OPERATING COSTS RATIONALIZATION

Abstract

The directions for rationalizing the enterprise’s operational expenditures the implementation of which will exert a positive influence over the financial results of the enterprise’s operational activities are presented in the article. Moreover, the researcher describes the methods for organising the manufacturing costs, the ways of motivating people for more efficient work, and the alternative approaches to sparing resources. Optimizing the structure of the operational expenditures, increasing the spending on wages, and involving employees to the distribution of income, the owner will strengthen the workers’ motivation and raise the productivity of work. Basing on the foreign enterprises’ experience, the researcher submitted the following methods for organizing the enterprises’ expenditures: the method of costing according to the phases of the life cycle of the products, the essence of which lies in defining the spending for each phase of the life cycle; the method of target-costing which determines the decline in the cost price during the whole productivity cycle due to the implementation of productive and scientific researches; the method of kaizen-costing which implies a permanent improvement in the quality of the processes with the help of all employees at the whole enterprise to decrease the unproductive expenditures; the method of benchmarking the spending which permits to benefit from the experience of the successful companies and sometimes enables to achieve much higher results.