Topical questions of organizing an effective cost management system in a competitive environment

 Aim. To substantiate the necessity of building a cost management system in a competitive environment and to identify the key issues that ensure its effective functioning.Tasks. To set out the basic approaches to the concept of “cost management system”, to study the essence of the system through its elements and establish the relationship between them; to determine which methods of the system are most preferable for the successful performance of each function; to formulate recommendations for effective organization of the cost management system in modern conditions.Methods. In the process of research general scientific methods are used; generalization of the results is carried out at the expense of the tabular and graphic form of presentation; four groups of methods of the account of expenses and management of their level - traditional and modern, methods of strategic management of expenses and methods of the concept of economical manufacture are allocated. In each group examples of methods are resulted, their brief characteristic is given.Results. The key measures within the system of costs management, the successful implementation of which is ensured by performing the functions of the system, have been shown; the contents of the functions has been revealed, as well as the relationship between them has been established; the possibility of effective use of the methods within each function of the system has been determined. It was revealed that the inefficient performance of one function has a negative impact on the performance of other functions. To eliminate this limitation, it has been suggested to allocate financial responsibility centers that act as a key tool to motivate employees to build an effective cost management system and achieve target performance indicators.Conclusions. The system of cost management serves as a component of the management system of the organization as a whole, is inseparably connected with accounting and is directed to optimization of the total cost level at simultaneous increase of efficiency of financial and economic activity. The system approach to cost management is characterized by the possibility of using various tools and methods of costing, cost accounting and management of their level. Inconsistent application of methods and tools with the system functions, as well as with its goals and objectives indicates the poor quality of the organization of cost management, which affects the management system as a whole.