On the Issues of Using Factor Analysis of the Financial Results of the Organization in the Agricultural Sector of the Economy

DOI

10.2991/aebmr.k.200324.109How to use a DOI?

Keywords

price, sales figure, proceeds, cost, sales profit, factor analysis

Abstract

The article focuses on the importance of applying factor analysis of financial results in the activities of organizations worked in the agricultural sector. The agricultural sector of the economy is a complex multisectoral productive-economic system. The level of its development largely determines the level of food security of the country, its political and economic stability. In this regard, there is an objective necessity to provide the stability of the development of agricultural enterprises. The value of the financial result of the organization is an indicator that is influenced by many factors, including specific, distinctive to a particular industry. In this connection, the implementation of factor analysis of profit in the context of the main types of production is an important element in the development of the marketing strategy of the company. The economic and financial development, financial incentives for employees depend on the size of the organization’s profit, and profitability indicators allow the manager to assess the effectiveness of the organization and make a policy decision. A factor analysis, based on the example of one of the operating enterprise of the Krasnodar Territory, was carried out, as a result of which the influence of the quantity, cost, price and assortment of goods sold on the profit from the sale of wheat was revealed. As a result of the research, a number of issues were identified. The key issues are: a growth of material production costs for wheat, and also an insufficient price policy. The reserves of the organization’s profit growth were determined and the possible economic effect of additional activities, which lie in the implementation of the strain renovation and the actualization of additional volume of wheat at higher prices, was calculated.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nadezhda Klimovskikh
AU  - Andrei Fediashkin
PY  - 2020
DA  - 2020/03/30
TI  - On the Issues of Using Factor Analysis of the Financial Results of the Organization in the Agricultural Sector of the Economy
BT  - Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019)
PB  - Atlantis Press
SP  - 585
EP  - 589
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200324.109
DO  - 10.2991/aebmr.k.200324.109
ID  - Klimovskikh2020
ER  -