Models of cost behaviour: determination of function of metallurgical production costs

Alona Vasylivna Khmeliuk, Vasyl Oleksandrovych Halahanov


Introduction. Peculiarities of cost behaviour and specificity of their modelling in the production of metallurgical products are considered. It is established that the definition of the volume of costs and cost of metallurgical products is regulated by P (C) BO 16 "Costs" and has sectoral features that involve the application of various methods of accounting for costs and calculating the cost of production. The main external and internal factors influencing the behaviour of expenses are determined. Effective methods for study of the dynamics of expenses at the enterprises of the metallurgical industry are offered. It has been established the following  factors: business functions, investigated object of cost calculation and choice of method of cost calculation influence the behaviour of expenses. The function of costs of production of metallurgical products with the help of means of economic and mathematical modelling of correlation and regression analysis is constructed. The use of such cost response indicators as factors of comparison of seasonal behaviour costs and business activity of metallurgical production output has been proved. The prospects of application of the obtained econometric model in the practical economic activity of the enterprise for making effective management decisions both in the short-term and long-term perspective are determined.

Purpose. The article aims to highlight the peculiarities of formation of the accounting information about expenses at the enterprises of the metallurgical industry; to highlight the factors affecting the behaviour of costs; to investigate the behaviour of the expenses of the enterprise of metallurgical products and to develop the economic and mathematical model of total expenses; present the stages of a comprehensive study of cost behaviour.

Method (methodology). Method of system analysis, methods of causal analysis, method of correlation and regression analysis, table and graphical methods, dynamic series method (chain change coefficients) have been used in this research.

Results. Features of cost formation of metallurgical production have been highlighted. The factors influencing the behaviour of expenses taking into account the seasonal component have been presented. The cost function has been developed and complemented by its cost response indicators for the purpose of integrated assessment of cost behaviour and the adoption of effective managerial decisions.


cost accounting; cost behaviour; cost function; calculation methods; extra-text method; preliminary method; economic and mathematical modelling; coefficients of response costs

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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