Gross output is the cost of the overall result of the enterprise’s production activities for a certain period of time. Gross output differs from marketable output by the amount of change in work in progress balances at the beginning and end of the planning period.
Changes in work in progress balances are taken into account only at enterprises with a long (at least two months) production cycle and at enterprises where work in progress is large in volume and can change sharply over time. In mechanical engineering, changes in the remains of tools and devices are also taken into account.
Gross output (GP) is calculated using the factory method in two ways.
Firstly, how is the difference between gross and intra-factory turnover:
VP = V O -V N,
where В о – gross turnover; Vn – intra-factory turnover.
Gross turnover – this is the cost of the entire volume of products produced over a certain period by all workshops of the enterprise, regardless of whether these products were used within the enterprise for further processing or were sold externally.
Intra-factory turnover – This is the cost of products produced by some and consumed by other workshops during the same period of time.
Secondly, gross output is determined) as the sum of marketable output (TP) and the difference in the balances of work in progress (tools, fixtures) at the beginning and end of the planning period:
VP = TP + (N n - N k),
where N n and N k is the value of work in progress balances at the beginning and end of a given period.
Work in progress – unfinished products: blanks, parts, semi-finished products located at workplaces, control, transportation, in workshop storerooms in the form of stocks, as well as products not accepted by the quality control department and not delivered to the warehouse of finished products.
Work in progress is accounted for at cost. To convert work in progress balances into wholesale prices, two methods are used: I) according to the degree of readiness of work in progress based on the ratio of the labor intensity of work already completed and the labor intensity of the finished product; 2) according to coefficients characterizing the ratio of the cost of finished products in wholesale prices and the actual cost of the same products.
The expected balances of work in progress at the beginning of the planning year in the shops are determined from reporting data based on inventory.
At the end of the planning year, the standard for the balance of work in progress (N k) is calculated using the formula
N k = N day ´ C ´ T c ´ K r ,
Where N day – daily production output in physical terms;
T c – duration production cycle, days;
C – production cost, rub.;
Кг – readiness factor of work in progress.
The readiness ratio of work in progress is determined according to the methodology outlined above - by labor intensity or cost.
Gross output is calculated in current comparable prices, i.e. enterprise prices that are unchanged on a certain date. Using this indicator, the dynamics of total production volume, the dynamics of capital productivity and other indicators of production efficiency are determined.
Products sold characterizes the cost of the volume of products supplied to the market in a given period and subject to payment by consumers.
The cost of products sold is defined as the cost of finished products intended for delivery and payable in the planning period, semi-finished products of own production and industrial work intended for external sales (including major “repairs of one’s own equipment and vehicles, carried out by industrial production personnel), as well as the cost of selling products and performing work for its capital construction and other non-industrial enterprises on the balance sheet of the enterprise.
Cash receipts associated with the disposal of fixed assets, tangible current and intangible assets, the sale value of foreign currency assets, securities are not included in the proceeds from the sale of products, but are considered as income or losses and are taken into account when determining the total (balance sheet) profit.
The volume of products sold is calculated based on current prices without value added tax, excise taxes, trade and sales discounts (for exported products - without export tariffs). Products sold for industrial works and services, semi-finished products of own production are determined on the basis of factory contract prices and tariffs.
The volume of products sold (RP) according to the plan is determined by the formula
RP = O n + TP – O k,
where TP is the volume of marketable products according to the plan;
O N and O K – balances of unsold products at the beginning and end of the planning period.
The balance of unsold products at the beginning of the year includes:
Finished products in the warehouse, including shipped goods, the documents for which have not been transferred to the bank;
Shipped goods for which payment is not due;
Shipped goods not paid for on time by the buyer;
Goods are in safe custody of the buyer.
At the end of the year, the balances of unsold products are taken into account only according to finished products in the warehouse and shipped goods for which the payment deadline has not arrived.
All components of sold products are calculated in selling prices: balances at the beginning of the year - in current prices of the period preceding the planned one; marketable products and balances of unsold products at the end of the period - in prices of the planned year.
In accounting it is highlighted products shipped and delivered locally by the customer and products sold, in this case, the moment of implementation is considered to be receipt cash to the supplier's bank account. An enterprise can choose one of the accounting policy options: determine profit either by the difference between the cost and the cost of shipped products (i.e., until the customer actually pays for them), or only after the customer pays for physically shipped products. The company does not have the right to change its accounting policy during the year.
Based on the volume of products sold, its total cost and profit from sales are calculated.
A number of enterprises plan and evaluate activities based on net production, which is determined by subtracting material costs and the amount of depreciation of fixed assets from marketable products, which in market conditions corresponds to the concept of “gross income.”
The concept of gross output. The general result of the production activities of enterprises is gross output. It represents the general quantity of products produced over a certain period. The gross output indicator takes into account all products (work, services) produced in a given period, sold outside the enterprise and intended for own consumption, as well as products of varying degrees of readiness.
For example, the gross agricultural output includes:
The main products of the enterprise: grain, potatoes, vegetables, sugar beets, milk, meat, etc.;
Offspring and live weight gain of livestock and poultry;
Cost of perennial plantings and work in progress;
A by-product produced simultaneously with the main product.
Gross agricultural output is taken into account both in physical and value terms.
By area of use, gross agricultural output refers to both the production of means of production and the production of consumer goods. That part of the products that is not consumed, but represents raw materials for industrial processing, refers to the means of production. Products that go into direct consumption without preliminary processing are classified as consumer goods.
The total expression of gross output is reflected in value terms. To determine the physical volume of production, changes gross production by year, calculating indicators of labor productivity, capital productivity by region, the entire volume of gross output is assessed in comparable prices. When calculating gross and net income in a particular farm for a certain period of production, gross output is assessed at current prices. All products sold are calculated at actual sales prices, and the non-commercial part of products is valued at the cost of its production.
Gross output in value terms varies significantly between years and economic regions of the country. This is due to changes in prices for products over the periods of their production, and with the contribution of a particular region to the production of products as a whole.
Gross output enterprises can be calculated in two ways:
1) based on gross turnover;
2) based on element-by-element counting.
Commercial products. Marketable products represent the cost of products and services intended for release outside the main activities of the enterprise in the planning period. TP=N· C, rub./year, where N – quantity of products, pcs.; C – actual prices per unit of product
Commercial products are products sold by an enterprise outside its borders; non-commercial products are products remaining at the enterprise, valued at production costs.
All products in agriculture has a commercial form. The enterprise is interested in ensuring that most of the products produced are sold outside the farm.
The volume of commercial products is planned in current and comparable prices. Commodity products in comparable prices characterize the pace, proportions and structure of production volume, and in current prices they are used for planning and analysis of production costs.
Commodity products appear in physical and value terms.
For example, in agricultural production in kind, enterprises sell certain types of agricultural products: grain, potatoes, vegetables, milk, meat, etc. The total volume of products sold by an enterprise is determined in monetary form.
Commercial output differs from gross output in that it does not include those results of production activities that remain at the enterprise itself and are not intended for release outside its borders. In addition, commercial products do not include finished products consumed at the enterprise, as well as the cost of raw materials and customer materials from which products are manufactured at the enterprise. this enterprise. These elements of gross output are called non-commodity elements.
As for the increase in gross and marketable output, in agriculture the main direction of growth in gross output is the consistent intensification of the crop and livestock industries based on chemicalization, land reclamation and comprehensive mechanization.
38. The essence of marketability of production. Enterprise specialization.
Product marketability (marketability level) shows the share of products intended for sale . the ratio of that part of the product that goes to the market as a product to the total volume of production
The main indicators characterizing marketability with/x and individual species products are: the total size of the enterprise's commercial output; the amount of marketable products per 100 hectares of land or per head of livestock. The level of marketability is defined as the percentage ratio of the size of marketable products to the gross: Um = Pt / Pv, where Pt is the size of marketable products; Pv - volume of gross output.
To determine the level of marketability of certain types of products, the size of gross and marketable products in physical terms is used. When determining the level of marketability of the entire enterprise, the cost indicators of gross and marketable output are used. In this regard, it is very important that gross and commercial output is calculated in uniform prices.
* The main ways to increase the level of marketability of agricultural production in modern conditions are:
Reducing on-farm consumption of products for production needs;
Improving the quality of seeds and feed, their economical use;
Reducing product losses during production, storage, transportation and sales;
Training of highly qualified personnel capable of working in market conditions.
The specialization of an enterprise reflects the predominant development of a particular industry in the enterprise. Specialization is the concentration of the resource potential of an economic entity (means of production and labor) on the production of certain types of products for the purpose of their profitable sale. Optimal placement and effective specialization of agriculture make it possible to ensure rational use resource potential.
The purpose of specialization of agricultural enterprises is to create conditions for increasing profits, production volumes, reducing costs, increasing labor productivity and improving product quality.
In social production, including agriculture, specialization is represented by in different forms, each of which has specific content and object. Forms of specialization are interrelated and interdependent.
Territorial(zonal) specialization is expressed in allowing the production of such types of agricultural products in certain zones
products for which there are favorable conditions. In this case, natural and economic forces, resulting in higher productivity and reduced costs.
General economic specialization means the division of labor between individual agricultural enterprises in the production of marketable products. Its main principle is to minimize the number of commodity industries.
Territorial and general economic specialization relate exclusively to commodity production, that is, to the production of those types of products that are intended for sale outside the enterprise.
On-farm specialization applies to both commodity and non-commodity production. This is its difference from the territorial and general economic forms. This form of specialization is aimed at the most rational placement of industries and individual production units among economic units. The purpose of on-farm specialization is the location of production certain type products or industries in a minimum number of divisions.
Intra-industry specialization is based on the technological division of labor. In cattle breeding, for example, some farms specialize in raising heifers or first-calf cows, others in milk production, and still others are engaged in rearing and fattening young stock beyond replacement. As a result, large specialized production is created .
Gross production - an indicator characterizing the volume of products produced in the sphere of material production; For some enterprises, the gross output also includes the increase in work in progress balances.
The gross grain harvest (in weight after processing) amounted to 94.2 million tons in 2011, but in 2010 it was only 61.0 million tons, due to unfavorable conditions, namely a dry summer. IN Perm region The gross harvest amounted to 444.2 thousand tons in 2011, and in 2010 it was 330.8 thousand tons, in 2009 it was 450.7 thousand tons. Again we see that 2010 was a lean year. If we look at the gross harvest by crop in the Perm region, we get the following figures:
2009 2010 2011
Wheat 200.3 138.0 182.2
Oats 106.1 75.3 107.0
Rye 26.3 29.3 28.0
Barley 100.1 75.6 108.5
Table 1
Gross grain production and the structure of its distribution
|
Culture |
Area, ha |
Productivity, t/ha |
Gross harvest and its distribution, t |
Duration of cleaning, days |
||||
|
implementation |
||||||||
|
Winter rye | ||||||||
Analyzing Table 1 we can say that. Of the four crops, the most gross yield was obtained from wheat, and less from winter rye.
2. Harvest duration
According to recommendations, in the Perm region the duration of grain harvesting should be 15 days (300 hours). Dividing the total gross harvest by 15 days, determine the average daily grain threshing and the duration of harvesting of each crop. Knowing the threshing sequence, we build a schedule for the arrival of grain for processing (Fig. 1).
1966 Wheat
2.08 7.08 11.08 15.08 days
Fig. 1 Schedule of receipt of threshed grain at the grain farm
As can be seen from the graph, it will take more days to harvest wheat due to its large gross harvest.
3. Features of post-harvest grain processing in the enterprise
Post-harvest grain processing is one of the most labor-intensive processes in grain production. For its rational organization, it is necessary to select effective technology and technical means, determine the optimal size and territorial location of grain processing complexes, and organize their work in the harvest conveyor system.
Freshly harvested grain mass is called a grain heap, as it is very diverse in its composition. This mass has high contamination, humidity, various microflora, is physiologically very active and cannot be stored.
A freshly harvested grain heap contains not only grains of the main crop, but also a certain amount of weed and grain impurities that deteriorate the quality of the grain and negatively affect its safety. According to the standard Cereal impurities include broken, puny, crushed, sprouted, damaged, unripe grains and grains eaten by pests.
TO Weed impurities include mineral impurities (sand, lumps of earth, pebbles, slag, etc.) and organic impurities (particles of stems, leaves, awns, stems of ears, chaff), remains of pests, seeds of wild plants (weeds).
Specially highlighted Harmful an impurity that poses a danger to human and animal health (ergot sclerotia, seeds of bitterling, chaff and other poisonous plants), as well as fusarium and spoiled grains from brown to black.
Fig. 2 Approximate diagram of the technological process of processing grain and seeds of various crops
Table 2
Machines and units for post-harvest processing of seed grain
|
Name of operations |
Machine types |
Productivity, t/hour |
|
Determination of grain quality |
In the production and technological laboratory (PTL) |
|
|
Weighing |
Automotive scales AC - 30C | |
|
Unloading | ||
|
Pre-cleaning | ||
|
Temporary storage | ||
|
Primary cleaning | ||
|
Secondary treatment | ||
|
Triering | ||
|
Pneumatic sorting | ||
|
Weighing |
Automotive scales AC - 30C | |
|
Release of products in bulk |
By gravity | |
|
Vertical transportation of seed grain |
Elevators Oil Refinery-50 | |
From this table it can be seen that the enterprise is provided with all machines for each stage of post-harvest grain processing. Moreover, all machines have high productivity. At the pre-cleaning stage, OBC-25 is used. Temporary storage: BV-40-A, drying: M-819. Primary cleaning: ZAV-10, secondary cleaning: MVO-10, triering: BTU-12, pneumatic sorting: PS-15.
Since the spring of 2014, the American Bureau of Economic Analysis has published quarterly statistics on another indicator. It is called “gross output” (GP) and will be a measure of total sales volumes at all stages of production. The new figure is almost double GDP, a standard measure of annual output of final goods and services that was developed fifty years ago. There are still discussions among economists about how to correctly assess the growth of the national economy.
Concept and its definition
The concept of gross output is used in the UN System of National Accounts (SNA) and the methodology for estimating economic growth. It is equal to GDP plus intermediate consumption. The new indicator reflects the total, and not the final sales volumes of all enterprises for the reporting period (year or quarter). Government and household expenditures are also included in the calculation. To obtain net output, the cost of intermediate goods and services is subtracted.
Production concept
The statistical definition of gross output depends on the definition of another term. This is production. Some economic flows and activities are excluded from the calculation because they are not part of the business cycle. These include a range of overseas transactions, income from property rights, transfers, land sales, various government payments, unpaid domestic work and voluntary work. All this is reflected in the production concept. On the other hand, gross output includes a number of dual activities. For example, the implied rental value of owner-occupied housing.
New statistics
The legendary investor Mark Skousen presented a new economic unit in his work “The Structure of Production.” Gross output has been the subject of his study since 1990. Even then, he understood the shortcomings of GDP and tried to find an indicator that would become a criterion for spending throughout the entire production process, and not just the final result. Gross output is, according to Skousen, his personal triumph, for which he does not regret spending 25 years. A special feature of the new indicator is that it illustrates all stages of the business cycle. Therefore, it is more related to the theory of economic growth.
GDP and value of gross output
Nobel laureate Simon Kuznets, who was the direct developer of the concept of final goods and services, understood the shortcomings of his indicator. Over time, critics have proposed many analogues, but none of them have gained widespread acceptance. The cost of gross output is already used by the US Bureau of Economic Statistics, and it has every chance of gaining popularity. GDP is a good measure of the economic productivity of a national economy.
But it has a significant drawback. GDP limits itself to final products and, in most cases, ignores or downplays the results of intermediate stages of output. For example, journalists routinely describe consumer and government spending as driving force economy. They make up 90%. And private investments are only unfortunate 13! Thus, by focusing only on final output, GDP understates the money spent and economic activity in the early stages of the production process. It's as if manufacturers, suppliers and designers are barely contributing to overall growth.
Benefits of the new indicator
Gross output is an indicator that exposes the shortcomings of GDP. Mark Skousen's work outlines many of the benefits of using it. Among them are the following:
Discussions around VP
The key problem of the economy is the need to get rid of “double counting”. And the calculation of gross output is based on it! However, a product can be sold countless times: as a resource, as a result of production, to wholesalers, and then to retail customers. GDP eliminates “double counting by measuring only the value added created at each stage. However, in this case, we lose vital business decisions that are made during the production process. Therefore, it is hardly possible to concentrate only on added value!
History of economic growth measurement
The last century passed under the auspices of the increasing pace of internationalization of economic life. There was a need to compare the economic growth of different countries. Two Russian scientists were pioneers in this field. Both taught at Harvard University and received Nobel Prize for your work. After the Bretton Woods agreements of 1946, GDP, the calculation method for which was developed by Kuznets, became the standard measure of economic growth. A few years later, Vasily Leontiev published his Input-Output Matrix. It is on his developments that indicators that take into account the intermediate stages of the business cycle are based. However, it was easier to calculate GDP, so economic theory temporarily abandoned this, albeit a more accurate indicator. Gross enterprise output was sometimes used only as an indicator at the micro level
Today, there are several ways to assess economic growth. The most common is the calculation of GDP. His technique was developed by Simon Kuznets. However, it only includes final products. And this is causing significant debate among economists. Exists a whole series similar methods for assessing growth. Recently, the UN SNA includes gross output, which was popularized by the famous investor Mark Skousen. The main difference of the new indicator is the inclusion of intermediate consumption in the calculation.
You will need
- Accounting data for the period under review (Balance Sheet, Profit and Loss Statement).
Instructions
Determine the cost of products produced by all departments of the enterprise for the analyzed period (gross product turnover). For calculations, use the accounting data. Find the cost of manufactured and sold products for the period on line 020 “Product cost” of the Profit and Loss Statement.
Find, according to the financial statements, the value of work in progress balances at the beginning and end of the analyzed period. In the Balance Sheet, these figures are entered in lines 130 “Construction in progress” and 213 “Costs in work in progress.” Determine on line 214 Balance Sheet“Finished products and goods for resale” is the value of finished product balances at the beginning and end of the reporting period.
Calculate the gross turnover of products produced by all departments during the period (VO). To the sum of balances of finished goods and work in progress at the end of the period, add the cost of goods sold and subtract the sum of balances of finished goods and work in progress at the beginning of the period. The calculation algorithm follows from the formula for calculating the balance of active accounts at the end of the period: Balance at the beginning + Income for the period - Expense for the period = Balance at the end of the period.
Determine from data accounting the cost of products produced by divisions of the enterprise for their own needs (BC). Review receipt documents or acts of work performed from auxiliary areas for the reporting period. For its own needs, an enterprise, for example, can produce containers or carry out major and current repairs of buildings.
Calculate the cost of the enterprise's gross output for the period using the formula: VP = VO - BC, where VP is the estimated value of the gross output, VO is the gross turnover of all the enterprise's products for the reporting period, BC is the cost of products produced by the enterprise for its own needs. Calculate this figure for the same period last year. Swipe comparative analysis, draw conclusions about trends in enterprise production volumes.
To determine price gross products, it is necessary to apply the factory calculation method. It consists in taking into account only that part products, which participated in the production once. This allows you to avoid double counting, because the company produces intermediate products, which are then recycled.
Instructions
There are several calculated values that determine the volume of production products at the enterprise. Most fully reflects this characteristic gross products. Mathematically, it can be found in the form of the difference between two values of trade turnover: gross turnover and intra-factory (intermediate) consumption: VP = VO - VZP, where: VP - price gross products;VO – gross;IZP – intra-factory consumption.
Gross turnover represents the total price final products of all workshops of the enterprise. It does not matter whether these products were sent directly to or transferred to other workshops as an intermediate material or semi-finished product.
Intraplant turnover is the total price semi-finished products or materials produced at the enterprise itself and intended for processing in another workshop. For example, intermediate spare parts or mechanisms for assembly or other equipment.
In size gross products may include data on the following elements for the reporting period: Finished products; Semi-finished products and products manufactured for final consumption, such as spare parts intended for sale rather than for further assembly vehicle; Works on major renovation, since they are included in the concept of depreciation charges, and those, in turn, are material costs related to the main production; Remains of work in progress.
IN price gross products financial results for: Defective products, including those sold at reduced prices; Industrial waste; Current repair work, since these expenses add to intra-factory turnover; Payment of non-production expenses: transport, household needs, etc.; Costs of materials for painting, tinting, nickel plating, etc. (while these works themselves are taken into account).
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Please note
IN food industry For calculations, as a rule, the gross turnover method is used to account for processed semi-finished products. For example, raw sugar can be duplicated in the cost of refined sugar.
Attraction investor It’s worth starting with monitoring the real estate market: a lot depends on how busy it is. Having found several companies that could potentially become your investors, invest in at least a little checking of each of them, since there is a risk of dishonesty on the part of investors. And the main means to attract a reliable investor should be a business plan for your construction.
Instructions
Spend a little marketing research real estate market. This can be done either independently, using open sources on the Internet (real estate analytical sites, etc.), or by hiring someone who understands this. This will give you a picture of how attractive the property is to investors in at the moment who could invest in your construction projects.
Visit investment company websites. Sometimes you can find out quite a lot about their activities and their condition from the site. Make a list of companies that would suit you as investors. Check them - at least with the help open sources. Order an extract from the Unified State Register legal entities, since you can glean quite a lot of information about the company from it. Select the most reliable potential investors. At first it seems that it doesn’t matter what the company is as long as it provides funds, but this is not so. An unreliable investor may suddenly lose interest in your project, which can lead to your loss.
The main tool for attracting investor attention to your construction is construction plan. In it you should describe the concept of the construction project, the market situation with such projects, necessary work, the necessary funds, the payback of the project. The latter is most important because the investor is investing in order to get the maximum return. Accordingly, his interest in your project depends on whether this project will bring him the expected result.
Much depends not only on the business plan, but also on you. An investor is unlikely to seek to manage your project; all he needs is . Therefore, he must be confident that all those brilliant numbers indicated in your plan will be achieved. Therefore, you must come across not only as someone who is knowledgeable about the real estate market, but also as a capable manager.
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Please note
Finding and selecting an investor for a venture enterprise at the earliest stage of its development is one of the most difficult and responsible tasks. Not all money is the same. “You can divorce your wife, but never divorce an investor!” - say venture capitalists. Keep this in mind and choose your investor carefully.
On the other hand, there is a bias towards investors. By means mass media the image of the investor has been created as a person who speculates on the stock exchange, buys everything “on the vine”, and is something between a fraudster and a gambler. So, you have a business idea that needs an investor to implement. How to find and interest an investor?
Sources:
- investors in construction in 2019
How to find gross output in the balance sheet industrial enterprise when preparing financial statements? This question is asked by many modern accountants, who must know what gross output includes and how all the necessary indicators are calculated.
Instructions
After this, accurately summarize all the results you received, and subsequently select all the displayed data into the enterprises in which the gross from is indicated. When you already have a specific total amount, simply add to it the annual increase in the value of all inventories. Secondly, pay attention to services in each industry if you work in a multi-industry business. To find gross output and to find it correctly, it is necessary to use accurate prices.
Remember that in industries such as forestry, agriculture, manufacturing and mining, calculating the value of gross output is much more difficult. This fact occurs due to the fact that the reporting documentation does not contain comprehensive information. If your enterprise does not belong to these industries, then gross output is relatively easy to calculate. After making the initial calculations, perform the following action - quickly fill in all information gaps regarding data on the full sales amounts of finished products produced by your enterprise.
In your calculations, be sure to take into account the cost of inventory stored in various production warehouses, and then make any necessary adjustments. Be sure, after calculating all totals, to bring them into line with accepted industry classifications using the latest calculation concepts. As a result, you should get the cost of manufactured products taking into account the manufacturer's price.
Unsold goods stored in warehouses of your enterprise, at the time of reporting, evaluate using the same methods as sold products. At the same time, the increase in work in progress and inventories in warehouses can be assessed both at book value and taking into account, without taking into account the estimated profit. The obtained data can subsequently be used for both financial reporting and statistical accounting.
The correct calculation of the volume of production ensures rational planning of the work of any production, as well as sales and supply services. In addition, this procedure helps to objectively assess the capacity of an enterprise/organization in physical terms and in monetary terms.
You will need
- - accounting reports.
Instructions
Calculate the monetary value of two amounts - finished products at the beginning of the reporting period and at the time of its end. To carry out this operation, borrow indicators from statistical accounting reports, which are compiled by an organization or enterprise for the statistics committee of the region where it is located.
Find the volume of finished products in natural. It is not difficult to standardize such a calculation process. To do this, add up such quantities as finished products released, the number of their outgoing balances, the number of finished products sold and the number of finished products left at the beginning of the reporting period.
Since the above calculation is relative, to obtain a more accurate and correct value, add to the revenue from the sale of manufactured products the difference calculated above by the total amount of production for the reporting period and the balance of manufactured products.
Please note
The rationality of drawing up a plan for its sales through the existing distribution network, as well as the correctness of expanding this network, depends on the correctness of calculating the volume of finished products in monetary terms.
Useful advice
The dynamics of changes in the volume of production are monitored according to the growth/decrease graph of the revenue of an enterprise or organization during the reporting period. This schedule is built on the basis of the data specified in Form No. 2 of the financial statements. Information is taken for two reporting years or a longer period.
Sources:
- Analysis of production volume and product sales
- determine production volume
Determine volume gross products in most cases it is possible using the factory method, which eliminates the repeated counting of intermediate products. This calculated statistical indicator characterizes the growth rate of production and labor productivity.
Instructions
The gross output of an enterprise is the total monetary value of units of goods for the reporting period of time. This does not take into account the cost of finished products and semi-finished products involved in its production, i.e. sold for domestic consumption. This calculation strategy allows you to avoid repeated calculations, since the costs of raw materials participate in the formation of the total value. However, at some enterprises in the light and food industries, double counting is allowed.
This calculation method is called factory calculation. It can be used to determine the volume gross products, which in general is equal to the commodity products minus the residual value of work in progress, as well as the cost of residual equipment, tools and special-purpose devices: V = TP + (HP2 - HP1) + (I2 - I1).
TP marketable products represent the total cost of a batch of goods or services produced for sale outside the enterprise. This value is expressed in the prices at which the goods are sold to the consumer, depending on the volume of purchase: wholesale or retail.
Work in progress indicators NP2 and NP1 are calculated, respectively, at the end and beginning of the reporting period. The difference between them shows the cost of semi-finished products and materials already included in commercial products, as well as intermediate products of the unfinished production cycle. The second applies to enterprises producing metal structures, for example, machine-building plants.
The residual value of instruments I2 and I1 is determined at the end and beginning of the period. The list of equipment and special devices used is approved for each individual enterprise and certified by the managing ministry or department.
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Tip 7: How to determine the volume of gross, marketable and sold products
Analysis of results financial activities enterprise covers several areas, in particular, volume calculation products. Depending on the methods of calculation, products can be marketed, gross, sold and net.
Instructions
The profit of the enterprise is based on the results of the finished products, based on the volume of its sales. It is important for any manufacturer that this indicator has a positive sign and corresponds to forecasts. Therefore, every financial analysis, within which, in particular, it is necessary to determine the volume gross, commodity and sold products.
All three quantitative indicators represent volumes products, calculated according to different methods. Gross volume products produced at the enterprise using its own or purchased materials, minus intermediate products and semi-finished products involved in production. This means that gross output includes only final goods. This method avoids double counting and is called factory method.