Analysis and Cost Estimation Algorithm as a Tool for Industrial Enterprise Management

An effective cost management system at industrial enterprises determines the level of their competitiveness, contributes to the formation and development of new markets for innovative products, which is relevant in the context of modern economic instability. At present, when the whole world faces the limitations of business activity caused by COVID19, not only small and medium-sized, but also large enterprises are experiencing problems associated with the organization and implementation of production and marketing of products, works, services. Gaps in many production chains lead primarily to increased production and marketing costs. Therefore, the formation of the algorithm for their estimation will allow the manufacturer to identify and evaluate possible changes in production costs and develop measures to optimize them. The starting point of cost management is the analysis of financial, production and administrative processes at the enterprise. Performance indicators depend on the level of costs at the enterprise. Features of the production structure of the industrial enterprise, the nature, type and scale of production have a significant impact on the magnitude, structure of costs and the procedure for their accounting.