ECONOMIC-MATHEMATICAL MODELING OF THE IMPACT OF THE PRIME COST OF PRODUCTS ON THE EFFECTIVENESS OF THE ACTIVITY OF ENTREPRENEURIAL ESTABLISHMENTS
Subject/topic. One of the key elements in managing the operating activity of organizations is managing expenditure, since expenditure, which is payments that need to be effected to be able to engage and retain economic resources, is one of the major factors that determine the organization’s financial results, the cost-effectiveness of capital investments, and, ultimately, the cost of the business. Aim/objectives. This work aims to investigate into the impact of the structure of the product’s prime cost on the indicator of the product’s cost-effectiveness. Methodology. In putting this article together, the author employed such methods of analysis as legal, comparative, economic-statistical, and correlational. Inferences/significance. The practical significance of this work lies in that the author fine-tunes the concept and composition of the prime cost of products and establishes equations for simple linear regression between the share of costs in the composition of the prime cost and the level of cost-effectiveness of the product across various types of economic activity in the Russian Federation (RF) in 2012. Knowing the share of costs in the structure of the product’s self-cost across various types of economic activity in the RF in 2012, we shall be able to use the derived models to assess the average level of the product’s cost-effectiveness.
PRIME COST, COSTS, EXPENSES, COST OF SALES, COST STRUCTURE, PRODUCT PROFITABILITY