The Production

To account for inventories by stage of development found in the organization. CPF = EIPP + CPRO EFPP where: CPF = cost of manufactured goods actions EIPP = initial goods in process EFPP = ending inventory at the cost of sales process: represents the cost of the goods actually sold during the period. Take into account stockpiles of finished products or in production, that are in the organization. CPV = EIPP + EIPA + CPRO EFPP EFPA where: CPV = cost of sales EIPP = initial actions of the collateral process EIPA = initial inventory of finished products CPRO = cost of produced goods EFPP = ending inventory in the process EFPA = ending inventory of finished products analysis of costo-volumen – utility analysis of CVU CVU is one of the most used business tools, studied the behavior of costs incurred in the production volume and all revenues derived from a given previously by the administrator. Credit: Gary Kelly -2011. Despite being a powerful tool for decision-making, it must be seen as a tool to assist in the planning and business control. The criteria for analysis must be previously laid down, such as: to) the sales prices will remain constant for any level of activity; (b) all costs may be classified as fixed or variable; (c) the amount of the variable costs will be directly proportional to the volume of production; (d) prices of the inputs are held constant for any number of purchases; (e) the time period corresponding to the time of planning, there is no change in administrative policy, the production process, the efficiency of men and machines, and cost control; (f) the production volume and sales volume are presented a high degree of synchronization, without significant changes in inventory levels; (g) all manufactured products are sold. Please note that there are costs that are traditionally identified, fixed costs such as those who are for periods of time without suffering changes depending on the volume of production. . Filed under: Scott Mead.