EVOLUTION OF COSTS IN THE ACTIVITY OF A TRANSPORT COMPANY OPERATING WITHIN THE EUROPEAN UNION
EVOLUTION OF COSTS IN THE ACTIVITY OF A TRANSPORT COMPANY OPERATING WITHIN THE EUROPEAN UNION

Summary/Abstract: A transport company operating on the European market is primarily guided by theprinciple of rationality, i.e. it minimizes costs in order to increase financial results and strivesto increase the efficiency of the services provided, while maintaining the current level ofcosts. What is more, competition forces transport companies to look for alternatives tooptimize their operating costs. Thus, effective management in a transport company isconditioned by both strategic and tactical skills of managers. As a result, planning a businessstrategy should be preceded by a thorough analysis of the current economic condition of anenterprise, which also translates into determining the causes and factors that have a significantimpact on the assessment and selection of the best enterprise management concepts.In addition, it is important to note that in the age of such great competition, every company ismaking every effort to achieve maximum turnover and, ultimately, the greatest revenue.As a result, managers are looking for ways to optimize costs so they do not have a negativeimpact on customer service levels. Thus, the cost optimization potential is when theoptimization efforts are properly prepared and carried out, then the cost reduction can besignificant. The research conducted by the authors illustrates the complexity of cost issues andexposes the critical aspects of the matters that form the decision base for the management oftransport enterprises. The research methodology was implemented on the basis of financialstatements for 2014-2015. This made it possible to classify the costs and changes existing inthe analyzed transport company occurring under the impact of both internal and externalfactors.

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