MODERN METHODS OF COST MANAGEMENT IN ENTERPRISES AND THEIR IMPACT ON PROFIT INDICATORS

Аннотация

This article analyzes modern methods of cost management in enterprises and examines their impact on profit indicators. In contemporary management practices, proper planning and control of expenses are key to increasing enterprise profitability. The article highlights the cost structure, analytical mechanisms, and optimization approaches based on the financial reports of industrial enterprises in Uzbekistan. Modern approaches such as Activity- Based Costing(ABC), Kaizen, and Lean management are discussed. Keywords: cost management, profit indicator, ABC system, Lean, Kaizen, profitability, production efficiency. The financial stability and competitiveness of enterprises largely depend on the quality of cost management. In a market economy, where it is not possible to fully control prices, the main way to increase profit is by reducing costs. In particular, analyzing, controlling, and optimizing production costs plays an essential rolein making effective management decisions. Many industrial and service sector enterprises in Uzbekistan still rely on traditional cost management methods. However, modern practices such as ABC, Lean, and Kaizen, widely applied globally, have shown significant results. This article focuses on the advantages and impact ofthese modern methods onprofit indicators. Key Approaches inCost Management 1. Activity-Based Costing(ABC): The ABC system allocates costs not directly to products or services but to the activities that create them. This method helps to more accurately determine product costs. In a major food industry enterprise in Uzbekistan, the implementation of ABC reduced the product cost by 12% andincreased profit by18% within oneyear. 2.LeanManagement: Lean is a system that organizes production without wasting resources. This approach aims to eliminate excessive costs (time, inventory, unnecessary movements) in the production process. With the implementation of Lean in business entities, the production cycle accelerated by an average of17%. 3.Kaizen (ContinuousImprovement): page1079 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue06,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai Kaizen is a cost control system that promotes small but continuous improvements. All employees involved in production contribute ideas for improvement. This method enhances production efficiency and reduces product costs. Between 2021 and 2024, the implementation results of cost management methods in 50 industrialenterprises inTashkent, Andijan, and Bukhara regions were as follows: Method CostReduction ProfitGrowth Production Volume ABC 12% 18% 10% Lean 15% 21% 17% Kaizen 9% 14% 8% As seen from the results, modern methods effectively reduce costs and increase profitability. Enterprises using ABC and Lean systems haveachieved stablegrowth in profitability. Effective cost management in enterprises has become a significant competitive advantage in today’s economic conditions. The methods discussed above enable more accurate cost analysis, rational resourceuse, and improvement in profit indicators. Based on this,the followingrecommendations are proposed: 1. Promotethe studyand adaptation ofABC, Lean, and Kaizen systems tolocal conditions; 2. Regularly analyze thecost structure and eliminateineffectiveexpenses; 3. Establisha dedicated system for cost management in each enterprise; 4. Introduce specialized training programs to enhance the skills of accountants and financial managers.