Improvement of use of natural resources. Here it is considered: change of structure and quality of raw materials; change of efficiency of fields, volumes of a preparatory work at production, ways of production of natural raw materials; change of other environment. These factors reflect influence of natural (natural) conditions on the size of variable expenses. The analysis of their influence on decrease in product cost is carried out on the basis of branch techniques of the extracting industries.
The factors of decrease in prime cost and reserves revealed as a result of the analysis need to be summarized in final conclusions, to define total influence of all factors on decrease in the total value of expenses of t of costs of a unit of production.
Decrease in prime cost can happen at creation of automated control systems, use of the COMPUTER, improvement and modernization of the existing equipment and technology. Expenses and as a result of complex use of raw materials, use of economic substitutes, full use of waste in production decrease. The big reserve conceals in itself and improvement of production, decrease in its material capacity and labor input, weight reduction of cars and the equipment, reduction of overall dimensions, etc.
Relative change of depreciation charges pays off especially. The part of depreciation charges (as well as other costs of production) does not join in prime cost, and is compensated at the expense of other sources (special funds, the fees on the party which are not included in structure of products, etc.) therefore the total amount of depreciation can will decrease. Reduction is determined by actual data for the reporting period. The general economy on depreciation charges is counted on a formula
Expenses of the live and substantiated work in the course of production make costs of production. In the conditions of the commodity-money relations and economic isolation of the enterprise distinctions between public costs of production and costs of the enterprise inevitably remain. Public costs of production are the set of the live and substantiated work finding expression in production cost. Costs of the enterprise consist of all sum of expenses of the enterprise on production and its realization. These costs expressed in a monetary form are called as prime cost and are part of cost of a product. The cost of raw materials, materials, fuel, the electric power and other objects of the labor, depreciation charges, a salary of the production personnel and other cash expenditures include in it. Decrease in product cost means economy of the substantiated and live work and is the most important factor of increase of production efficiency, growth of accumulation.