Cost Management to Realize the Innovative Potential of Food Production and Ensure Economic Security
- 10.2991/aebmr.k.200730.045How to use a DOI?
- cost management, innovative potential, economic security, value added
Reducing the cost of production makes it possible to sell at lower prices, which is one of the main factors in the growth of sales. In turn, the increase in sales determines the positive dynamics of the volume of production, which entails a decrease in specific fixed and variable costs. The costs increase if the resources are used inefficiently. It is necessary to raise prices, which will negatively affect sales volumes. To get beyond the conditionally closed circle indicated above, it is necessary to ensure exponential development, which in the short term leads to deterioration of financial results compared to the linear development model, but strategically creates opportunities for a significant increase in production and financial results. For this purpose, the composition and cost structure of food industry enterprises should ensure the creation and use of innovative potential in the direction of technological, organizational, marketing and environmental innovations. Resource-saving technologies, lean manufacturing, the production of eco-products, the active promotion of Russian competitive products in foreign markets are relevant innovations, but there are also ways to ensure food security and, based on this, they increase the economic security of enterprises, regions, and the country. It is important to strive to increase indicators of profit and profitability along with an increase in value added by reducing the material consumption of production while increasing the share of depreciation of fixed assets and intangible assets, as well as wages in the cost of food production. The seasonality of food production and short storage time are the reason for the increase in the cost of using logistics infrastructure facilities. Management of a food production enterprise requires a comparative analysis of the costs of outsourcing or storing and lending stocks. The current cost structure for innovation is unbalanced. The acquisition of machinery and equipment without appropriate investments in technology and personnel does not provide the desired market effect.
- © 2020, the Authors. Published by Atlantis Press.
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Cite this article
TY - CONF AU - V.A. Hvostikova AU - I.F. Elfimova AU - V.N. Rodionova AU - G.A. Lavrenova AU - I.A. Shishkin AU - S.N. Karuna PY - 2020 DA - 2020/08/01 TI - Cost Management to Realize the Innovative Potential of Food Production and Ensure Economic Security BT - Proceedings of the Russian Conference on Digital Economy and Knowledge Management (RuDEcK 2020) PB - Atlantis Press SP - 243 EP - 248 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200730.045 DO - 10.2991/aebmr.k.200730.045 ID - Hvostikova2020 ER -