Methods of planning of profit

Methods of planning of profit

Methods of planning of profit

At the heart of planning of enterprise profit volume of production, sales volumes, and also prime cost lie. In business activity processes of planning of profit are necessary, as it can define financial security of manufacturing enterprise. In a condition of socialist economy this process was carried out quite simply: volume of production, realization volumes, prime cost, price. During today’s time this method of does not justify, because does not give an objective assessment.

In a condition of inflation other approach of forecasting of enterprise profit is required. There is a factorial method when planning profit. In its basis certain conditions lie:

1. Look-ahead characteristic of planning.

2. Application enough flexible indicators with certain deviations from expected size.

3. Full accounting of inflationary changes. In more detail about inflationary changes it is possible to read on the Internet where it is also possible to watch on ютуб video and to read to it comments.

4. Use of the main indicators for the previous period.

5. Clear and effective system of the factors influencing planned indicators.

6. A choice of optimum sizes of indicators from a number of options.

Factorial way carry out in some stages.

1. Calculation of base indicators for last period: proceeds from sales of the made goods, prime cost, the price for production, profits on realization, gross profit.

2. Purpose development for planned year. The purposes can be grouped in the directions: sales proceeds growth, release of the new production, some change in compensation.

3. Forecasting of an index of inflation: index of the price for the production, index of the price for raw materials acquisition etc.

4. Calculation of the planned enterprise income and profitability for options.

5. Selection of optimum option.

In these mathematical calculations by the most difficult moment calculation of expenses for production of necessary production and its prime cost will be.

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