CLASSIFICATION OF EXPENDITURES ON INNOVATION ACTIVITIES OF INDUSTRIAL ENTERPRISES

Abstract

Modern trends in economic development, such as globalisation of markets, intensification of competition, changes in consumer demand, shortening of life cycles of goods and technologies, increasing requirements for their quality, and rising costs of used resources, require leaders and managers to find effective methods of managing the company's activities. Ensuring the competitiveness of enterprises in such conditions is impossible without the introduction of the latest management concepts, which requires changes and development of functional management, one of which is the management of costs based on the definition of new criteria for their classification. Classification of costs for management purposes should meet the main requirement – it should be based on characteristics that allow differentiation of costs for their management in various aspects. It creates conditions for determining the level of costs according to the scope of their management, organisation of planning, accounting, control and analysis. The purpose of the article is to consider the accounting, analytical and management tasks of cost classification in industrial enterprises and its improvement. Methodology. The methodological basis of the thesis is a set of methods and principles of scientific knowledge, general and special methods and techniques used in research. The theoretical basis of the study is the scientific work of domestic and foreign scientists on issues of cost management, organisation of information systems, management accounting of costs, methods of cost management. The legal basis of the study consisted of the current legislative and regulatory documents regulating the formation of costs of enterprises in Ukraine. The information base included official statistical data, reporting and accounting information of enterprises, Internet resources and publications, as well as the results of own research. In order to achieve the set goal, the methods of system approach (to study and characterise the theoretical basis of cost classification) and structural-logical analysis (to determine the criteria for classification of costs of an industrial enterprise) were used when writing the article. Practical implications. The obtained results and the developed recommendations constitute a methodological basis for the improvement of the management of costs for the innovative activity of industrial enterprises based on the definition of new criteria for their classification. The most practical results are: the study of the similarities and differences in the approaches to cost classification of industrial enterprises, the definition of the objectives of cost classification, the consideration of cost classification by cost items, the need to distinguish additional features of cost classification. Value/originality. The classification of costs for the innovative activity of an industrial enterprise has been improved and extended with additional criterion features (possibility of management, accounting and reporting, the principle of accepted obligations, the place of formation, according to the stability factor), due to the need to determine the relationship between the size of the enterprise 's costs and the possibilities of exercising managerial influence on them by managers of different levels, which makes it possible to optimise the composition and structure of costs, which are reflected in various methods of cost management and are the basis for their choice of coordination.