In order to estimate the volume of products produced in different time periods, price comparison must be applied. Constant or comparable prices are used to eliminate the influence of price changes on the dynamics of value indicators when they are compared. Comparable prices make it possible to assess the development of trade, production and consumption of goods in the context of inflation.
It is necessary
- - the value of the deflator index;
- - calculator.
Instructions
Step 1
Constant uniform prices across the entire country should reflect production costs over a period of time. Comparable prices are necessary to take into account the efficiency of the use of production assets, the growth rate of commodity and gross output in value and physical terms, as well as to take into account the growth of labor productivity in different categories of management. Typically, prices are revised every 10 years.
Step 2
Constant prices reflect not the dynamics of the cost of production, but its natural expression, that is, the mass of consumer value. The price here acts as a means of measuring and bringing to one common denominator those products that are incommensurable in kind.
Step 3
If we compare the products produced for two consecutive years, the price of any year can be taken for a comparable price. In the case of an analysis of a dynamic series of indicators for a longer period, the price of the base year that precedes the year of major changes in the price system is taken as the comparable price. To bring prices into a comparable form, it is necessary to use individual and average price change indices, which means that constant prices must be calculated based on the use of officially established deflator indices.
Step 4
Deflator indices include:
- capital construction index;
- consumer price index;
- index of prices of manufactured industrial products;
- the index of prices for the acquisition of material and technical resources by industrial enterprises.
Step 5
To convert the price of any past year to the price of the current one, you need to find out the price index and multiply the price of the past year by the known index. The result will be the necessary price.
Step 6
The inconsistency of the volume factor can worsen the assessment of the organization's activities to reduce the costs of generating gross output, and if we compare the actual costs with the planned costs, the difference in indicators is caused by both a change in the cost of some types of products, and changes in production. In order for the indicators to be comparable, it is necessary to neutralize the influence of the volume factor, for which the planned costs are converted into the actual volume of production and compared with the actual costs.
