Abstract
Statement of a problem: the present article is theoretical and methodological research focused on analysis and provisioning the basics for using different approaches to economic mathematical modeling of attributed costs of production in industrial enterprises. Approach: in its methodological part the article is based on a set of economic mathematical modeling methods. In particular, method of graphical simulation was used as well as regression modeling method. Research results allow making conclusion that using graphical approaches to modeling of attributed costs of production does not always provides relevant and objective results. Authors prove that the best and the most practical way is to use regression and correlation modeling methods in managing cost prices. Conclusion/recommendations : materials provide in this article are an addition to general management theory as well as extension of theoretical and methodological basis of production management. Main theoretical and methodological results obtained in the work are recommended as development platform for making high quality and effective management decisions in modeling cost price, volume of production and revenue of an enterprise.
Highlights
Production activity management of today industrial enterprises is getting more and more complicated (Limitivski, 2010)
Main theoretical and methodological results obtained in the work are recommended as development platform for making high quality and effective management decisions in modeling cost price, volume of production and revenue of an enterprise
At the same time separation of costs and expenses related to cost price of operational activity of industrial enterprise in permanent and variable allows adapting planning procedures to changing external conditions but provide required balance of resources considering possible linear and non-linear trends of prices variations and prices of these resources. It is commonly thought in macro- and microeconomy that increase of production volumes means reduction of cost unit due to economy of scale (Deakins, Logan & Steele, 2001)
Summary
Production activity management of today industrial enterprises is getting more and more complicated (Limitivski, 2010). Both internal and external factors contribute complicating specifics of production activity management of today industrial enterprises. Not the less important factor is change of management paradygm for the one with dominating role of innovative activity and sustainable development of industrial enterprises (Mochalova, 2010). Internal factors that affect specifics of industrial enterprise's functioning in external environment may be viewed in functional, process and system dimensions. The most important is income, costs and revenue management because availability and sufficiency of financial resources is the basis of innovative-driven sustainable development of today industrial enterprises (McConnell & Bru, 2009)
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