The subject of research is the theoretical and methodological foundations of the process of managing the costs of the enterprise, especially the formation of efficiency indicators and their impact on the work of the enterprise in conditions of increased competition. The purpose of the study is to develop and form a methodology for managing the costs of the enterprise, as well as analysis of the enterprise taking into account the impact of current market conditions of goods and services. Research methods. The article uses general and special methods of research of economic processes, analysis of market conditions and functions and synthesis of processes aimed at improving the enterprise. Results of work. As a result of writing the article, it was found that one of the main components of enterprise cost management are performance indicators of the enterprise. The choice of cost management techniques and its implementation are the main part of the content of activities to improve the efficiency of the enterprise. In the management system, the strategy is considered as a long–term qualitatively certain direction of enterprise development, relating to the scope, means and forms of its activities, the system of relations within the enterprise, as well as the company’s position in the market of goods and services. If its goals determine what the company aspires to, what it seeks to get as a result of its activities, the cost management system answers the question of how, by what actions the company will be able to achieve its goals in a transformative economy that changes in a competitive economy. environment. This understanding of the cost management system eliminates certainty in the behavior of the enterprise, because such a system increases the efficiency of the enterprise, leaves freedom of choice in a competitive environment. Field of application of results. Economics and management of the national economy at the macroeconomic and microeconomic levels, enterprise management, management, strategic management. Conclusions. As a result of the study, taking into account many additional factors and features of enterprises, we can conclude that the main factors influencing the efficiency of the enterprise are costs and cost management techniques. Enterprise cost management is a powerful tool to influence the company’s activities. In a market economy, the efficiency of the enterprise and the situation form an important component of the system of self–regulation. In general, the mechanism of cost management of the enterprise can be divided into two interacting parts. The first is related to the types, structure, magnitude and dynamics of changes in production costs. The second is related to the ways and rules of forming new and changing existing methods of managing production costs.