Methodology for determining performance indicators of products sold: examples of renewal

Abstract

It is emphasized that the economic efficiency of production and sales of products is measured by the levels of profitability of products and profitability of sales, as well as cost recovery and cost intensity of products. They have a single economic essence and, knowing one of them, it is easy to determine the rest. The table of interrelation of indicators of efficiency of realized production is given. The reliability of the formulas indicated in the table is confirmed by the example of the activities of a particular enterprise for 2021. To calculate the efficiency of products, two initial indicators are needed: the volume of sales in value terms and the total costs incurred (cost) or the selling price and the cost of a unit of production. Taking into account the decisive role of the ratio of the selling price to the cost of production (ie cost recovery) in the economic calculations of the efficiency of sold products, a nomogram is presented. The essence of its application lies in the fact that, according to the cost recovery indicator, it is possible to find the values of the profitability of sales, sales profitability and product cost intensity without calculations. To do this, just use the ruler. It is emphasized that instead of nomograms, you can use a table in which all performance indicators are pre-calculated. So, depending on the value of the ratio of price and cost - cost recovery, a table of indicators of three types of efficiency has been compiled. The proposed method is quite simple and accessible, and therefore can be used by both practitioners and university students.