ANALYSIS OF PRODUCTION COSTS AND THEIR EFFECTIVE USE

It is not a secret that the basis of the market economy is self-interest, and these interests of firms and companies are clearly manifested in the achievement of profit during the period of activity. One of the factors that increase the profit is the effective use of these costs. If we look at the dictionary meaning of the word cost, costs are the reduction of economic resources that occur by reducing assets or incurring liabilities arising from business activities in order to increase profits. In this definition, it is necessary to emphasize the phrase "in order to increase profit". After all, all expenses of economic entities may not justify themselves, that is, may not bring profit. Only costs that have made a profit can be included among the costs of firms and companies that have been used effectively.