Analysis and Expenditure Management at the Industrial Enterprises

Abstract

Живець а.м. к.е.н., доцент, доцент кафедри природничо-наукової підготовки Одеський національний політехнічний університет Шепель т.в. к.е.н., доцент, доцент кафедри економіки, управління та адміністрування Херсонський політехнічний коледж Одеського національного політехнічного університету наконечна в.і. викладач кафедри економіки, управління та адміністрування Херсонський політехнічний коледж Одеського національного політехнічного університету This article deals with the analysis of issues connected with overhead cost management at the machine-building enterprises, in particular planning and budgeting of the functional and core business units, that is particularly urgent with the development of market economy. The mechanism of expenditure management at the machine-building enterprises, which had been forming in unstable market environment, contains a considerable number of omissions and defects, which, for the most part, can be determined as a non-compliance of the system of expenditure management at the enterprise with the new social and economic conditions. Investment in the development of own functional and core business units do not have a meaningful effect on the expected increase of production efficiency any more. The partial modernization of the old system of expenditure and business management at all enterprises displays its inefficiency. In the opinion of the author, it is a sign of a systemic crisis in the production management in general, and not only in the expenditure management at the enterprise. Market conditions and globalization of world economy require application of corresponding internal economic mechanism at the enterprise. The enterprise should be integrated into regional, industry and international production networks. The specified omissions and defects require development of new economic mechanism of expenditure management that would be able to operate effectively under new market conditions with consideration to specific features of a highly competitive market environment. The author states that market competition and changes in the form of incorporation of enterprises become the determinal factors for the development of expenditure management methods. The main results of the study of this issue are showed through the example of the group of machine-building enterprises of Kherson region. A targeted allocation of resources is offered for the implementation of the first and the most important initiatives providing achievement of the main planned goals of the enterprise, which will significantly reduce all expenditure of the enterprise, including the expenditure of functional and core business units.