Comparative analysis for estimating production costs

Abstract

The analysis of the cost of production is a complex problem, being very useful in the planning and control process as well as in production and sales. In this study, this was done using three methods: accounting analysis, high-low and regression analysis that allowed cost elements to be identified through a cost equation that can be used in planning and control analysis or in sales activity. At the same time, the evolution of the cost elements was achieved using two estimates used by the accounting method. The High-Low method allowed the determination of the minimum and maximum activity level at one year's level, which was then analyzed through the company's available activity range. The multivariate regression analysis determined the analysis of the obtained model, being linear, thus establishing the production line.