What are commodity products

The planning of production and accounting products have always been the focus of managers, accountants, financiers and other professionals who are involved in the real economy.Marketable products - is an enterprise of products that are in stock and ready for delivery to the consumer.Accounting for it produced both in volume and in value terms.In this case, the volume of commodity products include semi-finished products and which are also available on the market.

If we take the example of car factory, it is obvious to everyone that it is commercial products of the cars.These machines can be of various grades.In turn, each brand has a number of options for configuration.For example, the entire line of models of the Volga Automobile Plant is equipped with a heater.Buyer of their needs can choose the car, complete with radio and navigation.Similarly, the interior of the vehicle can be sheathed with different materials at cost.

These examples show that for the production of vehicle use different materials and components.Of course, radio purchased from third-party suppliers.What is a radio factory in Russia or abroad engaged in the production of these complex products.Thus, we can conclude that it is a commodity output set of components for the car.It is not hard to guess that the proportion of the cost of completing elements of significant value.

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To understand a subtlety in the economic indicators, it is necessary to know that when analyzing and calculating the results of the company for a certain period used indicators such as gross and marketable products.For some reason, many students and young economists, these figures seem to be the same.Although in fact they have fundamental differences.For managers who are involved in financial management, they are completely different information, which, in turn, serves as a basis for management decisions.

at the automobile plant, which is taken as an example, it can really be a situation when said radio purchased by a wide margin.Commodity production - ready vehicles - steadily sold to consumers.This machine purchased without these most stereos.This can happen for various reasons.One of them - their old design.All the major companies offer their cars, manned by players on optical disks.In our example, the radio yesterday that play only on cassette tape.

And it turns out that the hardware products purchased for the future will be a useless burden to gather dust in a warehouse.First of all, this fact characterizes the low professional level of logistics specialists.Of course, we should not put them in a decision on the guilt of purchasing large quantities of these same components.Most likely, the contracting parties have offered very favorable terms.Recorder were bought at a price significantly below market.Now, for a long time while in the warehouse, they are a fact of their presence increase the gross output.

must say that indicators such as gross output, is formed by a simple formula.Gross production - a commodity production plus stocks in warehouses.And to this is added the volume of work in progress.When the main experts analyze the business results for the period - this can be a quarter or a year - they are sure to pay attention to the structure of the gross output.Inventories of components, which are not implemented in the main production, should be kept to a minimum.In what way it is done - a separate issue.