APPLICATION FORMALIZED METHOD OF ECONOMIC ANALYSIS WHEN CALCULATING STANDARD VARIABLE COSTS

Abstract

The functioning of an enterprise in modern conditions of increased competition requires the most efficient use of resources. Successful business management should be based on the use of modern methods in the field of audit and analysis. The development of economic analysis over many years has been in the direction of developing various indicators of an enterprise’s economic activity. The use of economic analysis in the context of integrating its methods with other disciplines in managing enterprise costs allows for increased resource efficiency. In particular, the use of deterministic factor analysis methods when determining deviations of variable production costs from the standard makes it possible to determine the strength of their influence on marginal revenue. The modern approach to costing in the manufacturing process is based on two options: 1) simple direct-costing, which involves using only data on variable production costs; 2) advanced direct-costing, which involves including all variable costs in the manufacturing process in the costs of products. In the general system of indicators that characterize the effectiveness of economic activity, the leading place is occupied by the cost of production. In the process of analyzing production costs, a number of issues arise: determining the actual cost to identify reserves for its reduction; analyzing the level of actual resource costs and their control; comparing actual resource costs with standard values in order to identify deviations and determine their causes; providing the management of the subsidiary and structural divisions with reliable information for making optimal management decisions. The authors propose to use deterministic factor analysis methods when analyzing variable costs in the cost structure of products, which makes it possible to identify factors that most significantly affect the performance indicator. This approach allows you to form a systematic view of the process of calculating and analyzing variable costs in the production of products and allows you to form operating profit management models.