The Role Of Cost In Soviet Machine Building PDF Download

To the Soviet leadership the cost of production is one of the most important factors in their planned economy, principally because it is regarded as a measure of the efficiency with which national resources are utilized. There is, however, a general lack of knowledge in the West about the nature of Soviet cost data - - how they are derived and how they are used. This report examines the Soviet concept of cost, the methods by which cost is calculated under varying conditions of production in the machine building industries, and the use to which such cost data are put. The methods of calculating cost in Soviet machine building are illustrated through a number of hypothetical examples taken from Soviet literature. Particular attention also is devoted to the problems of costing new articles in Soviet machine building. The use of costs as a basis for planning prices is examined only in passing because it is regarded as a subject requiring more treatment than it can receive in this report.