Factor Analysis Models in Enterprise Costs Management

Abstract

The process of substantiation, adoption and implementation of a managerial decision requires a lot of analytical work, which is based on the use of various economic calculations. Objective and accurate results of such an analysis are always in demand when developing and justifying managerial decisions. To estimate the impact of factor indicators on the effective feature, various factor analysis techniques have been developed based on such widely used research methods as the chain substitution method and the method of absolute differences. The main advantages of these methods are simplicity, efficiency and easy interpretation of the results. However, most of them do not give an accurate assessment of the influence of factors, since they do not take into account the sequence of replacement of indicators when performing calculations, depending on the degree of their significance. To analyze diversified production the problem arises how to estimate the impact of the composition of produced heterogeneous products on effective economic indicators, such as profit and total costs. Such a situation leads to the implementation of an incorrect production diversification strategy and errors in the formation of an optimal market composition. The article discusses and substantiates ways to eliminate identified problems in the construction of factor models on the example of agricultural production.