CORRELATION ANALYSIS OF MANUFACTURING COSTS OF INDUSTRIAL ENTERPRISES

The article deals with the task of conducting correlation analysis of industrial enterprise production costs in order to determine the interdependent indicators that characterize the efficiency of cost management. In the course of the research the methods of observation, comparison, analysis, synthesis, generalization and economic-statistical method were used. The study is based on the hypothesis that production costs, their optimization and management are important and one of the most difficult issues in the activity of enterprise managers. The dynamics of production costs of the Public Joint Stock Company «Kyiv Vitamin Plant» are investigated. Effective data indicate that wage increases, other operating costs and overhead costs are particularly affected by the increase in production costs. In order to prove or refute the relationship between production costs and other financial and production indicators, a correlation analysis was conducted, which allowed to establish the dependence of economic indicators that are not functionally related. Two cases are considered. The first is to evaluate the correlation between production costs and financial results of the enterprise. It is estimated that the correlation coefficient is 0.99 (indicating that 99 percent of the variation in financial results is due to the variation in production costs of the enterprise, and 1 percent of the variation in financial results is due to the action of other factors. The second is the correlation between production costs and output. The calculation of the correlation coefficient proved that 92 percent of the variation in production volumes is due to the variation in production costs of the enterprise, and 8 percent of the variation is due to other factors. Thus, the construction of models of interdependence of production costs (production cost) products) allowed to distinguish productive (financial result) and factor components (production output). Thus, the correlation analysis revealed additional ways of growth of financial result, optimization of production volumes and decrease of production cost of production of industrial enterprise.