Methodology of complex analysis for production costs at manufacturing enterprises

Production cost is one of the most important company’s activity indicators characterizing company’s expenditure related to production and sales. Under competitive market conditions it is important for managers to be aware of the actual production cost and of the possibilities to decrease it. It can be achieved by conducting complex analysis of the production cost. The aim of this article is to substantiate the significance of expenditures and production cost at manufacturing enterprises and to suggest a methodology of such a complex analysis of production cost for manufacturing enterprises. The article analyses the volumes, dynamics and structure of Lithuanian business enterprises’ expenditures as well as the cost of sales by economic activity types. An exemplary scheme of the complex analysis of the production cost for manufacturing enterprises is presented. Actions carried out by production cost analysts are studied; absolute and relative indicators are estimated and analysed.