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Considerable reserves are put in decrease in expenses on preparation and development of new types of production and new technological processes, in reduction of expenses of the starting period on again put into operation shops and objects. Calculation of the sum of change of expenses is perfromed on a formula

The factors of decrease in prime cost and reserves revealed as a result of the analysis need to be summarized in final conclusions, to define total influence of all factors on decrease in the total value of expenses of t of costs of a unit of production.

Improvement of use of natural resources. Here it is considered: change of structure and quality of raw materials; change of efficiency of fields, volumes of a preparatory work at production, ways of production of natural raw materials; change of other environment. These factors reflect influence of natural (natural) conditions on the size of variable expenses. The analysis of their influence on decrease in product cost is carried out on the basis of branch techniques of the extracting industries.

Expenses of the live and substantiated work in the course of production make costs of production. In the conditions of the commodity-money relations and economic isolation of the enterprise distinctions between public costs of production and costs of the enterprise inevitably remain. Public costs of production are the set of the live and substantiated work finding expression in production cost. Costs of the enterprise consist of all sum of expenses of the enterprise on production and its realization. These costs expressed in a monetary form are called as prime cost and are part of cost of a product. The cost of raw materials, materials, fuel, the electric power and other objects of the labor, depreciation charges, a salary of the production personnel and other cash expenditures include in it. Decrease in product cost means economy of the substantiated and live work and is the most important factor of increase of production efficiency, growth of accumulation.

Improvement of the organization of production and work. Decrease in prime cost can result from change in the organization of production, forms and methods of work at production specialization development; improvement of production management and reduction of costs of it; improvement of use of fixed assets; logistics improvement; sokrashcheniyatransportny expenses; the other factors increasing the level of the organization of production.

In general product cost consists of material inputs, costs of payment of a salary to workers and complex items of expenditure. The increase or reduction of expenses on each element causes either rise in price, or decrease in product cost. Therefore in the analysis to check expenses of raw materials, materials, fuel and the electric power, costs of a salary, shop, manufacturing and other expenses.

Branch and other factors. Treat them: input and development of new shops, production facilities and productions, preparation and development of production in the operating associations and at the enterprises; other factors. It is necessary to analyse reserves of decrease in prime cost as a result of elimination outdated and input of new shops and productions on higher technical basis, with the best economic indicators.

For the analysis of level of prime cost at various enterprises or its dynamics for the different periods of time of costs of production have to be led to one volume. Prime cost of a unit of production (accounting) shows costs of the enterprise of production and realization of a concrete type of production counting on one physical unit. Accounting of prime cost is widely used in pricing, cost accounting, planning and the comparative analysis.

Decrease in prime cost can happen at creation of automated control systems, use of the COMPUTER, improvement and modernization of the existing equipment and technology. Expenses and as a result of complex use of raw materials, use of economic substitutes, full use of waste in production decrease. The big reserve conceals in itself and improvement of production, decrease in its material capacity and labor input, weight reduction of cars and the equipment, reduction of overall dimensions, etc.