Current Trends in Changes of the Cost Structure of Industrial Enterprises in Russia

Abstract

The article presents the results of the study of the impact of cost structure on the profitability of goods sold in the processing industries of Russia for the period from 2005 till 2017. This allowed the authors to conclude that the material and other costs of enterprises had a major influence on the dynamics of profitability. The total share of these costs during the study period was 84-85%. In addition, regression analysis showed the effects of changes in the share of material costs on the change in the share of other costs. The value of the coefficient of determination was 0.860487, which indicates a high dependence between the indicators under consideration. At the same time, the authors could not find such a close relationship between material costs and other cost elements. In practice, the composition of the material costs of enterprises is quite clearly defined by the Tax Code of the Russian Federation, which simplifies their control. A wide list of costs included in other costs enables enterprises to manipulate these costs, because not always the priority objective of the organization is to improve the financial performance. According to the authors, the development of industry guidelines for cost accounting and calculating the cost of production, the need for which is due to the influence of industry and technological features on the cost structure, the method of their planning and accounting will contribute to improving the financial performance of industrial enterprises.