Instruction

1

Implemented products – are the products shipped by the company from its territory and paid by the buyer. Its volume is calculated in physical or monetary terms.

2

All the necessary information for the analysis comes from standard financial statements: "the Report on profits and losses" (form № 2), "the annual Movement of goods, their shipment and implementation" (statement No. 16), the accounting data reflected in the accounts of 40 "Output

**of products**", 43 "Finished goods", 45 "Shipped products" and 90 "Sales". You can also use regular statistical reporting (e.g., form № 1-p "Report on**production**of industrial enterprises").3

The volume of sold

**production**in volume terms is calculated as the sum of all units shipped and paid for the**products**for all periods included in the reporting period. Natural indicators are pieces, kilograms, packing, tons, meters, etc.4

The volume of sold

**products**in terms of money (or value) is determined by the selling price of the goods including value added tax. The measuring units here are of rubles (dollars, euros etc). Simply put, the realized production in monetary terms is the company's revenue received from the buyer for the delivered goods.5

Also the volume of sold

**products**can be determined on the basis of commodity**production**. For commodity**products**is fully finished products has already been transferred to the buyer or stored in the warehouse. In this case, the volume of sold**production**can be calculated as the difference between the commercial products and the warehouse inventory for a specified period.6

Remember that sales is considered only products for which payment has been credited to the account of the company (or in cash). Therefore, the calculation doesn't include the products delivered to the buyer but not yet paid.

# Advice 2 : How to find the volume of the products

Determination of the amount of produced or sold

**products**– one of the fundamental operations that should be able to do every economist. That is why in the economic and financial educational institutions are so common tasks in which you want to find the volume**of the products**.Instruction

1

Most often, the expression "volume

**of production**" means the amount produced or sold by an enterprise**of products**over a certain period of time. It can be expressed in quantitative and monetary terms. To find the volume**of production**in monetary terms, multiply the quantity by price per unit. The calculation becomes somewhat more complicated if the products are not homogeneous, and price, respectively, varies depending on the party. In this case find individually the volume of each batch and total the results.2

Quite often the need to calculate the amount

**of products**in so-called comparable prices. Comparable prices are the prices of a particular year or on any particular date. They can be clearly known and recorded or found through the appropriate coefficients, for example, through inflation. In the case when you want to find the volume**of production**in comparable prices, to multiply the number of produced**products**at prices of a certain year, or to adjust the volume**of production**in current prices for the required ratio.3

Also common situation when you need to find the volume

**of products**sold within a certain period, e.g., quarter, six months or year. However, as a rule, known for the remains**of goods**at the beginning and end of the period. To find the volume**of the product**within a certain period of time, to the volume of**product**produced during a given period, e.g., year, add existing remnants**of products**at the beginning of the year and subtract the remnants**of products**held in storage at the end of the year.# Advice 3 : How to find the output

Determination of the volume of produced and sold

**products**– one of the main tasks, which should be able to solve every economist. In fact, this indicator calculated in dynamics, allows to make a conclusion about the pace of economic and industrial development of the enterprise.Instruction

1

Remember that the volume of production

**of products**can be measured by various indicators. They are natural, semi-natural and money. Natural indicators are pieces, tons, cubic meters, liters, etc. Conditional-natural indicators are used to summarize the amount of various types of homogeneous**products**. For example, the fuel extraction in recalculation on conditional fuel, the production of materials in the enumeration of the conditional brick, etc.2

To find the total volume

**of production**, use values. The most important of them are commercial products and gross output. Commodity products – products produced for sale outside the enterprise. This index is calculated based on gross**production**by deducting from it the cost of work in progress and semi-finished products. Gross output is the value of all the finished goods and semi-finished products made for a certain period of own materials and materials provided by the customer, minus the finished products and semi-finished products consumed in the production process.3

In simplified form, determine the volume of produced

**products**in terms of value you can by multiplying the number of manufactured**products**in physical terms by the number of units**of production**and price realization. If products are heterogeneous, then the calculation is a bit trickier. To do this, find the volume of each batch**of products**in monetary terms and add the resulting volumes.4

If you need to compare the amount

**of release****of goods**for different intervals of time, you have to bring them to a comparable, i.e. to calculate comparable prices. You can find them through the level of inflation (consumer price index). To do this, multiply the number of produced**products**to the price index of a certain year.# Advice 4 : How to find volume of production

The correctness of the calculation of the volume of production provides a rational planning of any production and service supply and demand. In addition, this procedure helps objectively assess the power of an enterprise/organisation in kind and in cash.

You will need

- - financial statements.

Instruction

1

Calculate the monetary value of two amounts – the amount of finished goods at the beginning of the reporting period and at the time of its completion. To carry out this operation, borrow indicators from accounting, statistical reports maintained by the organization or enterprise to the Committee of statistics of the region where it works.

2

Find it in monetary terms, the difference between the total amount of production during the reporting period and the balance of produced goods. The result will correspond to the volume of production.

3

Find the volume of the finished products in physical units. A similar process of calculation is easy to standardize. You should put such values as the number of produced finished goods, the number of the outgoing residues, the number of sales of finished products and residues of finished products at the beginning of the reporting period.

4

Since the above calculation is relative, for more accurate and relevant value add to revenue from sales of manufactured products calculated above, the difference between total production for the reporting period and the remainder of output.

5

To obtain the most accurate indicator, index the above-mentioned result by the percentage which reflects the price changes generated during the reporting period products.

Note

From the correct calculation of volume of finished goods in monetary terms depends on the rational planning of its sales through existing distribution network, as well as the literacy of the expansion of this network.

Useful advice

Dynamics of volume of production is monitored according to the schedule of the growth/decline of the revenue of the enterprise or organization at the same time. This graph is built on the basis of the information specified in form No. 2 of financial statements. The information is taken over the two reporting years or a greater period.