Determination of the optimal volume of production. Determination of the optimal volume of production of a perfectly competitive firm

The optimal volume of production is understood as such a volume that ensures the fulfillment of concluded contracts and obligations for the production of products (performance of work) on time with a minimum of costs and the highest possible efficiency.

The most common methods for determining the optimal production volume include:

method of comparing gross indicators;

limit comparison method.

The following assumptions apply when using these methods:

The enterprise produces and sells only one product;

The purpose of the enterprise is to maximize profits in the period under review;

Only the price and volume of production are optimized (it is assumed that all other parameters of the enterprise's activity remain unchanged);

The volume of production in the period under review is equal to the volume of sales.

The above assumptions may seem rather “rigid”, however, if we take into account that it is the price of the product and the volume of its production and sale, as a rule, that have the greatest impact on the economy of the enterprise, the use of these methods greatly increases the likelihood that right decisions.

Let us consider the essence of the proposed methods using the example of a hypothetical enterprise operating in the free competition market (the initial data are given in Table 3.3).

Table 3.3.

The volume of sales of products and the costs of its production

The method of compiling gross indicators involves calculating the profit of an enterprise with various volumes of production and sales. The calculation sequence is as follows:

the value of the volume of production is determined, at which zero profit is achieved;

the volume of production with maximum profit is determined (Table 3.4).

Table 3.4.

The volume of sales of products with maximum profit

In our example, zero profit is achieved with a volume of production and sales in the range of 30-40 thousand pieces. products, which corresponds to the value of gross revenue and costs, respectively, in the intervals of 1440-1920 and 1690-1810 thousand rubles. On fig. 3.1 is a graphic representation of this method.

L the BB line shows the change in gross revenue, and the VI curve shows the corresponding gross costs. Rice. 3.1 shows that sales of products in the amount of up to 37 thousand pieces. for the enterprise is unprofitable, since the curve of gross costs is located above the line of gross revenue. At the point where production is 37 thousand units, profit is zero, and gross revenue is approximately 1850 thousand rubles. With an increase in production volumes after 37 thousand pieces. gross revenue begins to exceed costs and profit (AC) appears, the maximum value of which is 1140 thousand rubles. achieved with a volume of production and sales of products in 90 thousand pieces. This is what is in this case optimum production volume.

A sign of production optimization is the achievement of the most profitable output at the lowest possible cost. The result of an optimal production process depends on the influence of external and internal factors.

The optimal volume of output is achieved as a result of the relationship between the technological and managerial tasks built on analysis and mathematical approach.

Ensuring the ultimate goal of the manufacturer - making a profit requires an analysis of:

The consumer market in the context of categories and product characteristics.
Composition of permanent and variable costs.
The impact of a change in the cost structure on optimal release products.
The minimum allowable price of products at the break-even point.
Determining the relationship of factors influencing the volume of output.

Conducting research is focused on a specific type of product unit, which allows you to obtain accurate analysis data.

Balance of consumer demand and supply

Dynamics of change market demand on products affects the strategy of the company for the production of goods. decreases:

Enterprises independently determine the composition of costs and fix the structure in the accounting policy. For operational analysis, costing is performed by item.

The impact of the composition of costs on the pricing mechanism

At a constant selling price of products, a decrease in unit costs leads to an increase in part of the profit. One form of optimization is to change the balance between fixed and variable costs. An increase in output leads to an increase in variable costs. permanent species costs remain unchanged. Regulating quantitative composition shares, an optimal balance of costs is achieved.

The structure of constants and variable costs differs when calculating the parameters:

Planned release, in which the value of each component is clearly defined. Actual data are used for the calculation.
An additional release based on market demand.

With additional release, a reduction in the price of products is achieved. The share of fixed costs in the additional batch of products is absent (covered by the planned release) and the resulting difference goes into the category of profit. As a result, a reserve of the minimum allowable price is provided, which allows for competitive discounts and seasonal sales of goods.

Determining the level of break-even production

The optimal level of output is located within the boundaries of the minimum allowable and maximum possible output. To plan the quantity of output, it is important to determine the minimum level - the lower break-even limit.

The calculation of the break-even point (TB) is carried out by assigning indicators of variables, fixed costs on the volume of output (quantity of goods) and the price of a unit of production. The critical point is calculated graphically.

Defining a critical release level allows you to:

Maintain the minimum allowable output during a period unfavorable for the sale of products. The need may arise in conditions of seasonality or high competitive offer market.
identify weaknesses and possible problems quantity output. The indicator makes it possible to vary the parameters of costs and volume.
Exclude from production products with unprofitable indicators.

An exact indicator and the use of calculated data can only be used if the data remain unchanged in a certain unit of time. If you change the structure of manufactured goods, the sales price or the amount of costs, you will need to make a new calculation.

The objective of the production process is to obtain the maximum return on capacity and human resources. Technical and economic indicators are influenced by external and internal factors. Non-manufacturing causes arise when:

Changes in commodity and consumer market;
increase in transport costs.

Internal factors are based on:

The technical level of equipment of the enterprise;
providing warehousing materials and finished products;
system of management and organization of work.

To determine the optimal level of production, it is not enough to determine the total break-even volume of revenue and costs. In practice, an important indicator is optimal size parties. Costs are taken into account:

Required for the implementation of the order;
necessary for the safety of stocks and products.

For example, you can determine the impact of capacity utilization on variable costs. The value of the share of costs decreases in the total value with a more complete use of capacities and increases with a decrease in productivity, which, in turn, affects . In turn, the increase in output will require the use of large areas for stock storage.

The search for relationships between indicators allows you to work out the degree of influence on the optimal output. A frequent option for searching for the interaction of factors is a combination of labor automation and capital investment. The selection of options is carried out for the same type of units of goods. Comparative analysis carried out in a quantitative or valuation.

For ease of perception, analysts use materials in the form of tables or diagrams. Most visual way achieved using graphs and curved lines - isoquant. The graphical method allows you to obtain information about the possible substitution when the original data changes.

The practical benefit of obtaining information on substitution allows us to consider, for example, the possibility of increasing automation and mechanization of labor in comparison with the use of costs handmade. In a common version, the method is used in the selection of raw materials or materials as a share of variable costs in the cost of finished products.

Basis for determining the optimal level of production output

The strategy of the enterprise to achieve the optimal level of production is reduced to the relationship of factors influencing the process. With the help of summary data of assessment and analysis, the following is achieved:

Determining the volume of output at which financial stability arises. The indicator is based on the calculation of the break-even point.
Obtaining data on the feasibility of producing a number of types of products. The assortment policy is determined on the basis of the ratio of average costs to the cost of producing a unit of output.
Search for internal and external factors that affect pricing.
Definition of entrepreneurial risk as a result of the study of conjectural demand.

The combination of factors allows you to get the optimal level of production of assortment units and the enterprise as a whole.

The value of the optimal level of production determines the profit and enterprises. Obtaining data on optimization is achieved by calculation, in which indicators of the volume of revenue, costs, demand, and other interrelated parameters are compared. By analyzing external and internal factors of influence, maximum output is achieved at minimum cost.

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1. Determination of the optimal volume of production and sales of products by comparing gross indicators.

The company, as a rule, seeks to maximize profits.

Ceteris paribus, the greatest influence on profit maximization is exerted by the volume of production (sales) of products and the price of the goods produced. Having passed the production volume corresponding to the breakeven point, the enterprise will subsequently receive a certain profit with an increase in production volume. The optimization method is the method of comparing gross indicators.

Its use involves a number of assumptions:

1) the company produces and sells only one product;

2) the purpose of the enterprise is to maximize profits in the period under review;

3) only the price and volume of production are optimized.

The essence of this method, when the manufacturer has no influence on the formation of prices, is to determine the amount of goods that he can offer to buyers at the prevailing market price.

The method of comparing gross indicators involves the calculation of profit for various values ​​of the volume of production and sales of products by subtracting the amount of gross costs from gross revenue.

Gross costs are determined by multiplying the cost of a unit of production by its quantity. Gross revenue is calculated by multiplying the price by the same quantity.

2. Determining the optimal volume of production and sales of products by comparing marginal indicators.

Along with determining the optimal volume of production and sales of products by comparing gross indicators for the same purposes, the method of comparing marginal indicators is used.

When optimizing production volumes using this method, the concepts of "marginal revenue", "marginal cost" and "marginal profit" are used.

marginal revenue- the average value of the decrease (increase) in revenue per unit of goods as a result of a change in the volume of production and sales of products by more than one unit. It is defined as the quotient of dividing the difference between subsequent and previous revenue by the corresponding difference in sales volumes in physical terms.

marginal cost- the average value of the cost of growth (reduction) per unit of output, which arose as a result of a change in the volume of production (sales) of products by more than one unit. They are determined by the ratio of the difference between subsequent and previous gross costs to the difference between the corresponding volumes of output.

marginal profit- the average value of the increase (decrease) in profit per unit of output, which arose as a result of a change in production volumes by more than one unit.

marginal profit is the difference between marginal revenue and marginal cost.

The starting point of the marginal comparison method is that an increase in output is cost-effective as long as marginal revenue exceeds marginal cost.

In order to produce the volume of production, it is necessary to know the indicators of labor productivity of workers. Labor productivity characterizes the performance of an employee in a broad sense - this is the ability of a particular employee to produce products or provide services.

Labor productivity can be individual (for one worker, measured by the amount of material goods produced by one worker per unit time) and social (determined by the costs of not only living, but also materialized labor).

Labor efficiency indicators are used for various purposes - planning, comparison, standardization, etc. Therefore, they may have different shape measurement, which is determined by the purpose and purpose of determining the indicator.

Natural indicators characterize the production of products in kind per unit of working time and are expressed in kind, for example, tons, kilograms, liters, meters, etc.

They are absolute and have limited application. They are mainly used when comparing the performance indicators of brigades, links, workers, as well as in determining the production standards and the level of their implementation.

To analyze the actual costs of working time, to determine the intensity of labor, a natural indicator of labor intensity of work performance is used (an indicator inversely proportional to production output), which is defined as the ratio of the total amount of working time spent on the entire volume of work to the number of work performed (norm of time).

However, cost indicators of labor productivity are characterized by greater efficiency, expediency and ease of use. They have become more widespread in industrial enterprises, have great versatility.

Their application makes it possible to take into account and compare various types of work by bringing them to a single meter (cost).

Labor indicators characterize the ratio of standard costs to the actual costs of working time. Such indicators are used to determine the efficiency of using the labor of workers in comparison with the norms. It is convenient to use such indicators when setting labor standards and determining optimal labor standards for employees.

Depending on the purpose of planning, apply various methods measurement of labor productivity. After all, labor productivity big influence on the level of competitiveness of the enterprise and its financial result.

Any planning cannot do without taking into account the productivity of labor, both individual and social. Production planning is inseparable from the rationing of workers' labor and from accounting for their compliance with labor standards.

In practice, with general accounting, the main distribution was gained by the cost indicators of accounting, since they are general and universal for the purposes of production planning. The enterprise should strive to increase labor productivity as a guarantee of future prosperity.

Economic and production activities at any enterprise are associated with the consumption of raw materials, materials, fuel, energy, with the payment of wages, the deduction of payments for social and pension insurance of employees, the calculation of depreciation, as well as with a number of others. necessary costs. Through the circulation process, these costs are constantly reimbursed from the company's proceeds from the sale of products (works, services), which ensures the continuity of the production process. The cost of acquiring the factors of production used is called production costs. Expenses costs

The economic understanding of costs is based on the problem of limited resources and the possibility of their alternative use. The use of resources in this production process excludes the possibility of their use for another purpose. For example, wood used in the construction industry cannot be used in the production of furniture, matches and other goods. The choice of certain resources for the production of any product means the impossibility of producing some alternative product. economic, or imputed, the cost of any resource chosen for use in the production process is equal to its value at the best of all possible uses.

From the point of view of an individual company economic costs - ϶ᴛᴏ those costs that the firm must bear in favor of the resource supplier in order to divert these resources from their use in alternative industries. It must be remembered that such costs can be as external, so internal.

external, or explicit, costs called costs in cash, which the company makes in favor of suppliers of labor services, fuel, raw materials, auxiliary materials, transport and other services. Under ϶ᴛᴏm, resource providers will not be the owners of the firm.

With all this, the company can use both ϲʙᴏ and its own resources. In this case, costs are also inevitable. Costs for own and self-used resource are unpaid, or internal (implicit) costs. The firm considers them as the equivalent of those cash payments that would be received for a self-used resource with its most optimal use. These costs include normal profit- the minimum fee required to support someone's activities in this area of ​​\u200b\u200bbusiness.

From the point of view of the accounting approach production costs should include all real, actual costs incurred in cash. These may be the wages of workers; rent for buildings, structures, machine tools, equipment; payment of transport costs; payment for services of banks, insurance companies, etc.

From positions economic approach production costs are considered to be not only the actual costs incurred in cash, but also the costs not paid by the company, the costs associated with the missed opportunity for the most optimal use of their resources. According to this approach, in production costs it is extremely important to take into account all costs - both external and internal, including the latter and normal profit.

There are a significant number of classifications of production costs. We will consider the most significant classifications.

From the standpoint of an individual entrepreneur (firm) there are:

• individual costs, which are the costs of a particular business entity;
• social costs - the costs incurred for the production of a certain volume of some product, from the standpoint of the entire national economy, there are social costs.

Distinguish:

• production costs;
• handling costs.

Production costs- ϶ᴛᴏ costs directly related to the production of goods or services.

Distribution costs- costs associated with the sale of manufactured products. It should be noted that they are divided into additional and net costs appeals. The former include the costs of bringing the manufactured products to the direct consumer (storage, packaging, packaging, transportation of products), which increase the final cost of the goods; the second - the costs associated with changing the form of value in the process of buying and selling, converting it from commodity to monetary (wages of sales workers, advertising costs, etc.), which do not form a new value and are deducted from the value of the goods.

Different types of resources transfer their value to finished products in different ways. In ϲᴏᴏᴛʙᴇᴛϲᴛʙ and given in theory and practice, they consider:

• fixed costs of production;
• variable production costs.

TO fixed costs production ᴏᴛʜᴏϲᴙt costs, the value of which does not change with changes in production volumes. It is worth noting that they must be paid even if the enterprise does not produce products (deductions for depreciation, rental of buildings and equipment, insurance premiums, payment of higher management personnel etc.)

Under variables understand the costs, the total value of which is directly dependent on the volume of production and sales, as well as on their structure in the production and sale of several types of products. These are the costs of raw materials and materials, fuel, energy, transport services, most of labor resources etc.

By the nature of participation in the creation of products (works, services), there are:

• the main costs directly related to the manufacturing process of products, in particular, the costs of raw materials, basic materials and components, fuel and energy, the wages of production workers, etc.;
• overhead costs, i.e. costs for managing and servicing production (shop, general factory, non-production, losses from marriage)

According to the method of reference to production costs are divided into:

• straight lines, which can be directly attributed to this species products (works, services);
• indirect, associated with the production of many products, traditionally ϶ᴛᴏ all other costs of the enterprise.

To calculate the sum of all expenses of the enterprise, they are brought to a single indicator, representing for ϶ᴛᴏgo in monetary terms. This indicator will be the cost. In the regulation on the composition of costs for the production and sale of products (works, services) included in the cost of products (works, services), and on the procedure for the formation financial results taken into account when taxing profits, production cost(works, services) is a valuation of products (works, services) used in the production process natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale.

The following types of costs are distinguished by the volume of costs taken into account:

• technological, which includes the costs of the implementation of the technological process for the production of products;
• workshop cost, which consists of the costs of manufacturing products within the workshop, in particular, direct material costs for the production of products, depreciation of workshop equipment, wages of the main production workers of the workshop, social contributions, expenses for the maintenance and operation of workshop equipment, general workshop expenses;
• production cost (finished product cost), except for shop cost consists of general factory expenses (administrative, managerial and general business expenses) and auxiliary production costs;
• full cost, or cost of sold (shipped) products, is an indicator that combines the production cost of products (works, services) and the costs of its implementation (commercial costs, non-production costs)

Apart from the above, there are planned and actual cost. The planned cost price is set at the beginning of the planned year based on the planned expenditure rates and other planned indicators for a specific period. The actual cost is determined at the end of the reporting period based on the data accounting on actual production costs. The planned cost and the actual cost are calculated according to a single methodology and according to the same cost items, which is extremely important for comparing and analyzing cost indicators.

Systematic cost reduction is the main means of increasing the profitability of the company. In conditions market economy when financial support for unprofitable enterprises will not be the rule, but the exception, as was the case with the administrative-command system, the study of problems of reducing production costs, the development of recommendations in this area is one of the important issues all economic theory.

Estimate and costing

Generally accepted will be the grouping of costs by types of costs, including classifications by economic elements and costing items.

The grouping of costs by economic elements demonstrates their distribution according to economic content and is used in the preparation of cost estimates for the production of products for the enterprise as a whole. The estimate is needed for:

• cost savings by item; drawing up material balances;
• normalization of working capital;
• development of financial plans.

This classification of costs contains five main groups of costs:

• material costs;
• labor costs;
• deductions for social needs;
• depreciation of fixed assets;
• other costs (taxes, fees, etc.)

It should be noted that the structure of costs, grouped by economic elements, is not the same for different industries.

The classification of costs by economic elements allows you to determine the cost structure, which can largely determine the policy for saving production costs.

The second classification of costs (according to cost items) is used in the preparation of estimates (calculation of the unit cost of production), which allow to determine what the unit of each type of product costs the enterprise, the cost of certain types of work and services. The grouping of costs by costing items demonstrates their composition depending on the direction of costs (for example, for production or its maintenance) and the place of their occurrence (main, auxiliary production, etc.) The need for this classification is due to the fact that the calculation of the cost of the above cost elements does not allow to take into account where and in connection with what the costs were incurred, as well as their nature. With all this, the definition of costs by costing as a way of grouping them relative to a specific unit of production allows you to track each component of the cost of products (works, services) at any level.

Calculation happens:

• planned, which is compiled for the planned period on the basis of progressive norms of labor costs and means of production;
• reporting, which is calculated on the basis of accounting data and shows the actual level of costs;
• normative, which is based on current standards that characterize the level of costs achieved.

As a rule, the following costing items are distinguished:

• raw materials and supplies; fuel and energy;
• main and additional wage production workers;
• social security contributions;
• expenses for the preparation and start-up of production;
• expenses for the maintenance and operation of equipment;
• shop expenses;
• general factory expenses;
• other production expenses;
• non-production (commercial) expenses, etc.

The fundamental difference between grouping costs by items

calculation from the grouping by economic elements is the presence in it of complex articles that combine elements that are heterogeneous in terms of their economic content, according to the principle of purpose (main costs and expenses for maintenance and management), the way they are distributed between individual types of products (direct and indirect) and depending on the change in the volume of production (constant and variable)

There are four main methods of product costing:

• simple;
• normative;
• custom;
• across.

Downtime is used in enterprises that produce homogeneous products that do not have semi-finished products and work in progress.

At these enterprises, all production costs for the reporting period are the cost of all manufactured products. The cost of a unit of production is calculated by dividing the amount production costs on the number of units of production.

The standard is used in enterprises with mass and serial production. A prerequisite its application will be the preparation of a normative calculation according to the norms in force at the beginning of the month and the subsequent systematic identification in the current order of deviations from these norms (savings and overspending) at the end of the month.

The order-based accounting method is used at enterprises of individual and small-scale production, where production costs are accounted for by individual orders for a product or work. Here, the actual cost is determined at the end of the completed order. The entire amount of costs will be its cost.

The cross-cutting method is used at enterprises where raw materials and materials in the production process go through a number of limits, stages (brick, textile), or where from the same raw materials in one technological process of production different kinds products. With the perepredelnoy method, the cost of all products is first determined, and then the cost of its unit.

Note that the theory of the optimal volume of output. It is pertinent to note that the definition of marginal cost of production

The optimal volume of production is ϶ᴛᴏ such a volume that ensures the fulfillment of concluded contracts and obligations for the production of products on time with a minimum of costs and the highest possible efficiency.

The optimal production volume can be determined by two methods:

• the method of comparing gross indicators;
• the method of comparison of limit indicators.

When using these methods, the following assumptions apply:

• the company produces and sells only one product;
• the purpose of the enterprise will be to maximize profits in the period under review;
• only the price and volume of production are optimized, since it is assumed that all other parameters of the enterprise's activity remain unchanged;
• the volume of production in the period under review is equal to the volume of sales.

At the same time, despite the strict framework of the above assumptions, the use of these methods greatly increases the likelihood of making the right decisions.

Let's study the example of determining the optimal volume of production using the above methods.

In table. 3 shows the initial data for determining the optimal volume of production.

Table 3

The application of the method of comparing gross indicators to determine the optimal volume of production involves the following sequence of actions:

• the value of the volume of production is determined, at which zero profit is achieved;
• the volume of production with maximum profit is established.

Let's study the volume of sales of products (Table 4)

Table 4

The volume of sales of products with maximum profit

Based on the data in the table, we can draw the following conclusions:

• zero profit is achieved with the volume of production and sales in the range from 30 to 40 thousand pieces. products;
• the maximum amount of profit (1140 thousand rubles) is obtained with a volume of production and sales of 90 thousand pieces, which will be the optimal volume of production in this case.

The method of comparing marginal indicators allows you to establish to what extent it is cost-effective to increase production and sales. It is based on a comparison of marginal cost and marginal revenue. With ϶ᴛᴏm, the rule applies: if the value of marginal revenue per unit of output exceeds the value of marginal cost per unit of output, then an increase in production and sales will be profitable.

Before moving on to determining the optimal volume of production using the method of comparing marginal indicators, one should consider such a concept as marginal costs. When forming the production plan of an enterprise, it is important to establish the nature of the increase in production volumes when adding additional production variable factors to the already available fixed resources, and how, in this case, the total costs of production and sales will be formed. The answer to this question is the law of diminishing returns. Its essence essentially lies in the fact that, starting from a certain moment, the successive addition of units of a variable resource (for example, labor) to an unchanged fixed resource (for example, fixed assets) gives a decreasing additional, or marginal, product per each subsequent unit of the variable resource. Let's study this statement with an example (Table 5)

Table 5

The table shows that the more additional workers are involved, the more products are produced. At the same time, each time the attraction of one more additional worker gives an unequal increase in the increase in output. By the way, this increase represents the marginal product of the labor of one worker. It is calculated by simply subtracting the level of production in question from the subsequent increase in output. In our example, marginal product per additional worker increased to a third worker and then began to fall. This change in the growth of marginal product is explained by the decrease in the growth of average labor productivity per worker. This is due to the fact that with an increase in the number of employees, fixed assets remain unchanged.

Based on the situation under consideration, one should not make hasty conclusions about the cessation of the production of additional products, since a decrease in the value of the increase in production volumes for each one employee involved does not yet indicate that the production of additional units of output is unprofitable. It all depends on whether profit increases when hiring another employee. For example, if the price of products in the market is unchanged, then the company will receive income as a result of the fact that it has more products to sell, provided that the amount of additional costs associated with hiring an additional worker will be less price goods.

From the above example, we can assume that the cost of a unit of production produced by attracting additional work force decreases to a certain point, and then starts to rise again. The fall or rise in the cost of each additional unit of output is called marginal cost.

The concept of marginal cost is of great practical importance, since it shows the costs that an enterprise will have to incur in the event of an increase in production by one unit. At the same time, at the same time, this concept shows the costs that the enterprise will “save” in the event of a reduction in production by this last unit. Based on the foregoing, we come to the conclusion that the costs of production under market relations should be considered not simply as the costs incurred for the acquisition of everything necessary for the production of products and their manufacture, but also as the establishment of the best opportunity for their use, i.e. in other words, it is extremely important to form such costs that give the best result.

Let us return to the determination of the optimal volume of production by the method of comparing marginal indicators. The calculation of the optimal volume of production is presented in table. 6.

Table 6 Calculation of the optimal volume of production by comparing marginal indicators

In our case, the marginal revenue per unit of output will be the market price of the unit. Marginal cost is the difference between the next total cost and the previous total cost (see gross comparison method) divided by the output. Marginal profit is found as the difference between marginal revenue and marginal cost.

Based on the above, we come to the conclusion that based on the data in the table, we can draw the following conclusions:

• expansion of production volumes efficiently (profitably) up to 90 thousand units;
• any increase in production volumes over 90 thousand units. production at a constant price will lead to a decrease in gross profit, since the amount of additional costs will exceed the amount of additional income per unit of output.

Directions for reducing production costs

Before considering the main directions of cost savings, it should be noted that the activities of the enterprise to achieve cost savings, as a rule, in most cases require labor, capital and finance. Cost-saving spending is only effective when growth useful effect outweigh the cost of savings. Naturally, another option is also possible, when a decrease in the cost of manufacturing a product does not change its useful properties, but allows to reduce the price in competition. We note the fact that in modern conditions typical will not be the preservation of consumer qualities, but savings on costs per unit of useful effect or other characteristics important to the consumer.

The following main directions for reducing production costs in all spheres of the national economy can be distinguished:

• use of achievements of scientific and technological progress;
• improvement of the organization of production and labor;
• state regulation of economic processes.

The implementation of the achievements of the NTP is as follows:

• more complete use of production capacities, raw materials and materials (reduction of production costs due to optimization of purchased raw materials, compliance with savings modes: economical use raw materials, materials, electricity, fuel);
• creation of new efficient machines, equipment, new technological processes, development of low- and waste-free, resource-saving technologies.

The creation of low-waste and resource-saving technologies in industry in our country has been carried out by research organizations for about 20 years. It should be noted a certain progress in their work in the early 1990s, when it was of a program-targeted nature. With the transition to market relations and in connection with the current difficult financial situation of research organizations and industrial enterprises, the introduction of the developed technologies slowed down and stopped. The transformation of traditional technologies into low-waste and resource-saving ones will make it possible to move from open production systems (obtaining the target product requires significant resources and is accompanied by the formation of a large amount of waste) to semi-open, and then to systems closed type with the complete processing of all resources and waste disposal.

As for the improvement of the organization of production and labor, the process, along with cost savings due to the reduction of losses, in almost all cases provides an increase in labor productivity, i.e., savings in the cost of living labor. At the current stage economic development the economy of living labor in comparison with the economy of social labor gives more significant results, as evidenced by research economic growth based on the use of the production function.

Under the planned management of the economy under the conditions of the command-administrative system, the technical, technological, and economic side of the production process was described in detail, but the human factor was practically not considered. The transition to a market economy has transformed many economic categories in particular human resource management. A new technological revolution associated with the use of complex technical and economic systems is fundamentally changing the position of man in production. It is worth noting that he is increasingly being squeezed out of direct participation in the technological process, being both an object and a subject of regulation. From ϶ᴛᴏ his role in the final result of the work immeasurably increases. Calculations by specialists have shown that further growth in labor productivity depends on 40% of the improvement of technology and 60% on the activation of the human factor.

In a market economy, it becomes necessary to correctly determine the conditions for encouraging personnel, to create such conditions under which it is unprofitable for an employee to work inefficiently and without initiative, not to mention conscious work to the detriment of the enterprise. American sociologist E. Mayo believed that social needs underlie the motivation of any activity of people. The Mayo experiment conducted in 1924-1936 is widely known. at the Western Electric plant in Hawthorne, Illinois, who showed that informal relationships in the production process are more important than favorable conditions labor or encouraging high labor productivity with material incentives. Moral stimulation in modern conditions should be based on the rule, which was formulated by D. Carnegie: "Inspire your interlocutor with the consciousness of his significance and do ϶ᴛᴏ sincerely." Modern researchers argue that social significance for a person is important in itself. And if it is supplemented by the ability to create, to perform the actions people need, determined by their own choice, then the reserve for increasing labor productivity without material costs is clearly visible. This type of incentive is especially important for the category of workers for whom their work is a vocation.

But, as you know, people are driven by interests, both moral and material. It should not be forgotten that during the transition to market relations, the main requirement for the organization of wages at the enterprise will be to ensure the necessary growth of wages while reducing its costs per unit of output and guaranteeing an increase in the wages of each employee as the efficiency of the enterprise grows.

The main significance of the state in a market economy is the creation of conditions for the development of private entrepreneurship and the regulation of its activities. Material published on http: // site
Do not forget that an important task will be to intensify state intervention in the economy at all levels, due to the need for its presence as an effective guarantor of economic rights and obligations.

Plays a significant role in reducing production costs government programs in the field of scientific and technical progress and state standards. The most striking example of state intervention in the ϶ᴛᴏth area can be considered numerous public and private scientific and technical programs, the creation of which is due to a significant increase in the cost of the fuel and energy component of costs (caused by the oil crisis of the 1970s in the United States and other developed countries, whose national economies consume large volumes of oil), thanks to them it was possible to largely offset the increase in oil prices.

1. production costs called the cost of acquiring the factors of production used. Expenses– ϶ᴛᴏ spending resources in their physical, in kind, a costs- valuation of the costs incurred.

2. Production cost(works, services) is a valuation of natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale, used in the production process of products (works, services).

3. The generally accepted grouping of costs by types of costs will be their classification by economic elements and costing items.

4. Optimal production volume϶ᴛᴏ such a volume that ensures the fulfillment of concluded contracts and obligations for the production of products on time with a minimum of costs and the highest possible efficiency.

5. marginal cost- the costs that the enterprise will have to incur in the event of an increase in production by one unit, or the costs that the enterprise will "save" in the event of a decrease in production by this last unit.

6. The main directions for reducing production costs in all spheres of the national economy will be: the use of the achievements of scientific and technical progress; improvement of the organization of production and labor; state regulation of economic processes.

The goal of the firm is profit maximization. Profit(P) is the difference between the revenue (TR) and the firm's total costs (TC):

Since, in the function of revenue (TR = P × Q), the market price is not under the control of a perfectly competitive firm, the task of the latter is to determine the output at which its profit will be maximized.

Firm maximizes profit at an output where its marginal revenue equals its marginal cost:

wherein production volume is optimal

According to the profit maximization rule, a firm that produces products in volumes at which MR=MC receives the maximum profit possible at given prices, i.e. optimal production volume is the volume at which marginal cost (MC) and marginal revenue (MR) are equal.

The equality of MR and MC is profit maximization condition for any firm regardless of the market structure in which it operates (perfect or imperfect competition).

Equality MR=MC as a condition for profit maximization can be justified logically. Each additional unit of output brings some additional income (marginal revenue), but also requires additional costs (marginal cost). As long as marginal revenue exceeds marginal cost, an extra unit of output increases profits.

Accordingly, at the moment when marginal cost becomes equal to marginal revenue, profit reaches maximum. Further rise output at which marginal cost exceeds marginal revenue will result in lower profits.

In its decisions, the company seeks to achieve the best results - to get the maximum profit with minimal cost. In this case, the firm is said to be in a state equilibrium .

Firm equilibrium condition is the equality of marginal cost, marginal revenue and factor price:

The point at which the market price crosses the marginal cost curve defines the equilibrium position.

To the left of point E (Fig. 2) MC > MR, it is profitable for the company to increase production, because on each unit of output, it receives more than it spends. Having produced less than at point E, the firm incurs losses from underproduction.

Figure 2. Firm equilibrium in production

To the right of point E MC > MR. For each additional unit of output, the firm incurs losses, because its costs exceed its income. It is unprofitable to increase production to the right of point E. Hence, optimum production volume is Q 0 .

Thus, at the volume of production Q 0 , the firm achieves maximum profit.

Hence. To achieve maximum profit, the firm must produce this volume of output. where marginal revenue equals marginal cost.

The equality of marginal revenue and marginal cost characterizes the equilibrium of the firm in any market structures and is used to maximize profits. minimizing losses and obtaining zero economic profit.

Conclusions on question 3

The volume of production at which marginal revenue is equal to marginal cost (optimum output) ensures maximum profit. If the actual volume of output is below the optimum, then the firm should expand production - profit will increase; If output is greater than optimal, then the firm should reduce production to increase profits.

Conclusion

Lecture conclusions:

1. The ultimate goal and main result of the company's activities is profit. The degree of profitability of a company depends on many factors: the rational use of resources, the efficiency of the technology used, the organization of production and labor, the validity of decisions made, etc. Solving the problem of increasing profitability, the company is guided by the rule of least cost and the rule of profit maximization, using a comparison of such quantities as marginal cost, marginal revenue and resource prices.