The cost of the product is an indicator that reflects all economic activity of the company. So to take into account the cost of production and calculation, analyzing of the cost of the product are one of the main tasks of FMA The main indicators which show companies activities and evaluation criteria are profit and profitability. The factor affecting to the profit is cost

 serves to control and to take into account expenditures;  The basis of formation the value of product and determination of profit and profitability of the company;  necessary element in decision – making of investment and management;  Represents usage of resources, new techniques and technologies, managing the production and efficiency by improving organization system

Stages of analyzing Analysis of implement ation of the cost plan A comparativ e analysis of the cost Determine the reserves to reduce costs of the product Factor analysis of the cost of product The analysis of the dynamics of the cost of the product

Evaluation of the implementation of the plan to reduce the cost The analysis of the level of the cost of the product Reasons in changing of the cost of the product Determine cost plan for future Study the tendency of changing og the cost Purpose of analyzing

Business plan information of business entities 1 Information from 5-S report about “Companies expenses” 2 Information from 1-T “Employment report” 3 Information from accounting report which consist of production expenses and other additional information 4

 The main indicator among indicators showing the costs of the product is expenses for a sum product. This indicator calculated as below: expenses for a sum product(tiyin)

indicatorPast year Reporting year In planIn real 1234 Production costs of product(work, service) thousand sum Wholesale price for comparable products, thousand sum expenses for a sum product ( tiyin )58,0862,5177,37

Expenses of a sum product Expenses for a per unit product Expenses of direct materials Expenses for direct labour Other expenses Material prices Some material prices Structure changes in materials Expenses for transportation Product price Changes in quality of the product Changes in demand for the product Changes in tax rates

 Increase the volume of product by using the full capacity of the production;  Increase labor productivity, use raw materials, electric energy, fuel, equipment respecting economic regime, elimination of ineffective expenses, reduce production expenses avoiding culling

=

- the planned and real cost of the unit of product; 3 1 – real expenditures of producing product 3 q – additional expenditures connected with increasing the volume of product VBP 1, P VBP – real produced products and reserve of increasing the production - reserve to reduce substance epenses

Firm produced A type product at 13300unit, and the reserve to increase it 1500 unit; Firm spent sums to produce it,reserve to reduce substance epenses is 2130 sums, additonal expenses to produce additional product are 4890 sums, then Reserve to decrease the cost of per unit product will be -0.3 =

 P 3П – economy from operating costs  TE 1,TE 0 – capacity of product before and after using measures of reducing capacity of labor  OT na – planned hourly wage  VBP p - planned volume of product

 P 3M- Material cost savings reserve  YP 1,YP 0 - the cost of materials for product unit before and after using innovative measures  Ц p - the planned material price