Cost Management to Realize the Innovative Potential of Food Production and Ensure Economic Security

DOI

10.2991/aebmr.k.200730.045How to use a DOI?

Keywords

cost management, innovative potential, economic security, value added

Abstract

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.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  -