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Fundamental Cost Aspects of Effectiveness of Development of Ukrainian Food Companies


  • Lisnichenko Yelena A.

    () (Donetsk National University of Economy and Trade named after M. Tugan-Baranovsky)


The article assesses effectiveness of development of food industry in Ukraine on the basis of application of the fundamental cost approach. Logic of economic assessment is based on comparison of the results of formation of capital of food companies and profitability of functioning of their assets. Effectiveness of capital formation is analysed from the point of view of the structure of sources of formation of assets of food companies and calculation of its weighed average cost (WACC). Profit flows are generated in the process of productive use of the capital (assets) and sufficiency of these flows is determined by the potential of formation of fundamental cost of the studied companies. The article conducts analysis of effectiveness of the use of main and circulating capital and assessment of investment and innovation activity of food companies and identifies main factors and problems that influence the low level of return on capital, which, in its turn, destroys internal cost of food industry companies.

Suggested Citation

  • Lisnichenko Yelena A., 2013. "Fundamental Cost Aspects of Effectiveness of Development of Ukrainian Food Companies," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 5, pages 165-172.
  • Handle: RePEc:idp:bizinf:y:2013:i:5:p:165_172

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    References listed on IDEAS

    1. Michael R Czinkota & Gary Knight & Peter W Liesch & John Steen, 2010. "Terrorism and international business: A research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(5), pages 826-843, June.
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