Volume 12 article 299 pages: 261 - 264

Published: Feb 28, 2017

DOI: 10.5937/jaes12-7166

THE COST REDUCTION - THE MAIN CONDITION FOR SUSTAINABLE DEVELOPMENT OF INDUSTRIAL ENTERPRISES

Valentina Vybornova
Valentina Vybornova
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∙ Svetlana Vybornova
Svetlana Vybornova
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Abstract

The deep and widespread changes in industry which are leads scientific-and-technological advance and systemic changes implemented in the course of from the global financial crisis, economic in- stability in the country and the world confront enterprise management tasks firm survival in difficult market conditions. As practice shows, the cornerstone of survivals- is a stationary state of company. The cornerstone is consider to entity 's ability of the enterprise to pay obligations in full and on time , and be capable of self-financing of the projects planned for the development of the enterprise. Huge reserve to increase the financial stability of the enterprise carries the job of managing the cost of production. The cost reduction gives financial safety margin which can be used for development of the enterprise and to strengthen its market position.

Keywords

Company Management Earnings Profits Costs of production Costs Cost structure Sustainable development path and reserves to reduce production costs

Acknowledgements

The authors extend acknowledgements to the rector of BSTU, prof. Sergei Nikolaevich Glagolev for their assistance in organizing the study and publication of the results. Work has been per- formed in the framework of Strategic Development Program at BSTU for 2012-2016.

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