FACTOR ANALYSIS OF COST STRUCTURE AS A MANAGEMENT TOOL FOR PRICE COMPETITIVENESS

Abstract

The article explores theoretical and methodological approaches to factor analysis of cost structure as a tool for managing the price competitiveness of an enterprise in conditions of increasing market uncertainty and competition. In modern economic environments, price remains one of the most important instruments of competitive struggle, while the ability to adjust it without reducing profitability directly depends on the level and structure of production costs. Therefore, cost is considered not only as an accounting indicator but also as a key management category that determines margins, financial stability, and overall market performance of the enterprise. The study substantiates that the structure of costs has significant analytical value, as it reveals the internal composition of expenses and identifies dominant cost components that form the main burden on product price. Special attention is paid to material, labor, energy, and overhead costs, which determine the lower price boundary and influence the degree of pricing flexibility. It is argued that without a comprehensive analysis of cost structure, enterprises are unable to adequately respond to changes in the external environment, justify pricing decisions, or maintain stable competitive positions. The importance of factor analysis is emphasized, as it allows moving from a descriptive assessment of cost changes to identifying causal relationships between cost drivers and the resulting indicators. The application of structural, dynamic, index, and deterministic factor methods enables the identification and quantitative evaluation of the influence of key factors on cost dynamics. The practical significance of the research lies in integrating analytical results into managerial decision-making processes. Factor analysis supports the identification of cost reduction reserves, optimization of cost structure, maintenance of profitability, and strengthening of competitive advantages. The study confirms that effective cost management is a necessary condition for ensuring price competitiveness and sustainable development of the enterprise.