To manage the organization, it is necessary to have information on its activities, including information on costs in a changing environment, as it helps to assess the competitiveness of their products, to create reserves to increase profits.
It should strictly observe the basic principles of economic analysis are as follows:
- principles of economic analysis must be based on a scientific basis, to carry the dialectical nature and at the same time adequately take into account existing laws of economic development and modern methods of research and evaluation;
- all kinds and principles of economic analysis should be formed on the basis of the public interest, that is, from the point of view of their compliance with the policy of the state in economic and social spheres;
- principles of economic analysis must comply with international standards in this particular area of activity;
- analytical work should ensure consistency in the examination of each object, a study of its elements in their mutual communication with each other;
- analysis should be carried out on the basis of its most important goal of getting as much as possible more objective and accurate information on the object under study;
- analytical activities should be dynamic, constantly evolve based on modern requirements;
- analysis should provide access to an external audit to verify the quality and reliability of results;
- analytical activities should build a complex to provide a comprehensive look at all aspects of economic activity of the enterprise;
- analysis necessary to make an active and effective to be able to in a timely manner and to keep the decision makers on the status of the company;
- principles of economic analysis should be based on a democratic basis, but the analysis should be carried out expeditiously and systematically, on the basis of clear and easy to understand the algorithm;
- own analytical activities should be an effective and low-cost;
- analysis should provide the ability to formulate an objective forecast variants of development of the enterprise in terms of possible changes in the business environment.
example, for better forecasting of changes in the cost of conventionally divided into variables and constants.It is important to take into account that variable costs, the analysis of the behavior of the cost vary with different degrees of business activity, as fixed costs remain the same.Note, however, that this condition is relative.To schedule can define two types: mandatory, that can not be reduced without significant changes in the activity of the enterprise, and discretionary, which if necessary can be modified, becausedepend on the decisions and management can be reduced.There are also miscellaneous costs, which include features like variable and fixed costs.The most effective method of showing itself, which reflects the change in the specific form of the costs when you change the dynamics of the activity.As a rule, the methods used in practice: graphic, boundary conditions, and correlation and regression analysis.
the graphical method can determine the dependence of the change of certain costs when changing the output.The graph clearly able to display the entire dynamic behavior of costs.It is fast, but approximate method.It should not be used if according to this method are taken significant financial decisions.
method of boundary conditions is also based on the construction schedule.It consists in calculating the slope of the line that will display the value of variable costs.It has a significant drawback - uses only 2 pairs of data from the highest and lowest values.Therefore, more accurate methods are the ones that use all available data.
Thus, the principles of economic analysis suggests that in this specific case the selection of the most accurate and appropriate method of analysis allows to make effective management decisions related to control production costs.This will improve the profitability of production and competitiveness of the enterprise.
