Approaches to managing enterprise costs under resource constraints

Abstract

Given that our state is in a state of martial law, which entails macroeconomic instability and logistical and energy challenges, the issue of ensuring the ability of enterprises to effectively manage costs by adapting their activities to the requirements of the present day is of exceptional relevance. The creation of an effective cost management system is considered a guarantee of ensuring a high level of competitiveness and profitability of enterprises. Particular attention should be paid to small businesses, which, on the one hand, show a high level of flexibility and adaptation, and on the other hand, experience a lack of resources and high risks. Purpose. The purpose of the study is to systematize approaches to managing enterprise costs in conditions of resource constraints. Methods. The research methodology is based on a critical analysis of scientific literature, the method of analysis and synthesis, induction and deduction, comparison, abstraction and generalization. Results. The conducted research allows us to assert that for the most part, the basis of the usual approaches to cost management is standardized methods of accounting, budgeting and control, which, despite the fact that they are designed to provide a certain stability, repeatedly neglect changes in the market environment, technological progress and high requirements for the strategy of further development. Therefore, the use of innovative approaches (automation of financial management, implementation of analytics of large data sets, use of artificial intelligence to forecast costs and revenues, digitalization of business processes) is becoming increasingly relevant. At the same time, the effectiveness of management decisions in the field of cost management is significantly influenced by the characteristics of the enterprise itself, its affiliation to a particular industry, technological development, etc. In addition, the implementation of modern approaches and methods of cost management requires additional capital investments, personnel training and changes to corporate culture, which, in turn, can lead to the emergence of certain risks and challenges. Conclusions. Taking into account the dynamic development of the market environment and systematic changes in the business sphere, effective cost management at the enterprise plays an important role. Studying existing approaches to cost management, we can conclude that flexibility and a combination of several approaches are important components of effective cost management. Conventional methods (budgeting and cost monitoring) are necessary components of control, as they provide an integrated approach to financial management. The general goal of all considered approaches in the work is to ensure the stability of the enterprise's development through effective management of financial resources. Given the systematic changes in the economy, it should be noted that currently there is no universal approach. Therefore, the adaptability of the cost management system allows the enterprise to maintain the proper level of competitiveness in modern dynamic business conditions. Therefore, modern enterprises must make a lot of efforts to improve the cost management system. Prospects for further research should include the development of a new system of indicators of the efficiency of the enterprise in conditions of resource constraints, directions for the active implementation of digital technologies, as well as mechanisms for the influence of resource constraints on the cost structure.