ENTERPRISE COST MANAGEMENT IN THE CONTEXT OF MINIMIZATION OF TRANSACTION COSTS LEVEL
Abstract
The article deals with the history of transaction costs and the evolution of scientific approaches to the interpretation of their nature. The evolution of scientific approaches to transaction costs is discussed in the article. The analysis of transaction costs at foreign enterprises showed their considerable share. The main reasons that complicate the process of control and minimization of transaction costs are stated: they are not regulated by current legislation; are not accounted for and are not separately presented in the financial statements of the enterprise. The classification of transaction costs of the enterprise is clearly presented. Continuing scientific research, it was noted that the level of transaction costs at domestic enterprises was increasing, which was caused by the increase of transactions for conducting business in the modern business environment. The reasons for the high level of transaction costs at modern domestic enterprises are revealed and the tendencies for their growth are indicated. The reasons that complicate the process of controlling and minimizing transaction costs are outlined. Transaction costs are broken down by section of each classification group. Examples of hidden transaction costs are provided. It is noted that not all transaction cost groups are related to product creation stages. The relationship between the value chain and the transaction costs of the enterprise is shown. Examples of the impact of transaction costs on the production process are given. It is concluded that the management of the enterprise should be aimed at minimizing transaction costs at each stage of product creation. The relationship between the value chain and the transaction costs of the enterprise is shown. Examples of the impact of transaction costs on the production process are given. It is concluded that the management of the enterprise should be aimed at minimizing transaction costs at each stage of product creation. Directions for reducing the level of transaction costs at the enterprise by reducing transactions, improving the quality and duration of contracts, establishing an effective dispute settlement mechanism, applying vertical integration with the largest reliable suppliers, constant monitoring of own information base on counterparties, application of unification and standardization and optimizing the volume of information being analyzed. It is stated that the reduction of transaction costs through the implementation of the proposed measures will positively affect the level of costs of the enterprise, will contribute to the growth of profitability, which will increase the competitive position of the company in the market.
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