Abstract
The abundance and complexity of business processes in the dairy industry require individual differentiation of costs of each of them and implementation of optimal management tools. It is especially important to distinguish milk production and transportation, as the costs of planning, organizing and delivery of products are the components of the cost of production. The methodology used will be a determining factor in the financial performance of the enterprise, which needs to make a choice between using traditional or functional costing by activity. Although the issue of financing has been investigated in various areas, the problem of improving the operational efficiency of logistics services through it still requires in-depth research. The aim is - to examine the possibilities of optimizing production structures through budgeting due to the high proportion of logistics processes in dairy sector. Methods - the study used analysis, comparative characterization, profitability assessment, which characterize the performance of logistics cost management. Results - it is established that the coordination and control of costs, including logistics costs is the implementation of a set of measures aimed at minimizing costs and rational use of available resources, ensuring the interconnection between structural units. The budget of production payments is fundamental in the system of budgetary regulation, which should be developed on the basis of the manufacturer-approved regulatory framework for each cost item. Conclusions - at various levels of economic activity, strengthening requirements to ensure sustainable development total logistics costs have an upward trend. The volume and productivity level of logistics service indicates a reduction in the life cycle time of most dairy products, which causes the streamlining of logistics flows. The increase in logistics costs is significantly influenced by the use of innovative technologies, modern high-efficiency machinery and equipment in the logistics cycle.