Audit and economical analysis

Methods	Superiority
Disadvantage
1	FIFO	Provides realistic evaluation of Inventories.	It leads to depreciation of costs; potentially increases profits; reserves make the calculation difficult.
2	LIFO	Provides the cost of production and the basis for profitability.	Reduces reserves at a low price; reserves make the calculation difficult
3	AVECO	Easy to use, no computing.	This leads to the assessment of actual reserves and production costs.
4	NIFO	Provides realistic assessment of reserves and production costs.	Every time you spend, much effort is required to determine INVENTORY prices.
5	Normative value method.	Reserves make up your account because it does not need to be booked.	The normative value may not reflect the current value and therefore may reflect the value of the stock.

In practice, there may be temporary suspension of production activity due to the seasonal demand for goods and changes in market conditions. In this case, some production costs, in particular the wage associated with that production, and the depreciation of fixed assets, will not be deducted. Because the production process has ceased, all the production personnel involved in the production are not dismissed, and the wages are at least minimal for their maintenance, the cost of amotization.

Among the factors that affect the costs change are the following:

Factors affecting direct and indirect material costs: change in the rate of material expenditure; Changes in the cost of unit of material expenditure.

Factors affecting the direct and indirect costs of labor: changes in the number of workers; the change in the wage earned per employee.

Factors influencing the change in wage deductions: Changes in the allocation base; change of the rate of deductions.

Factors that affect the depreciation costs: The value of the change in value; amortization norms and procedures.

Units that affect other expenditure expenditures will vary depending on the type of expenses that are not included in the above order.

The units that affect the periodic expenses change are investigated based on sales, administrative and other operating costs.

Units that affect the change in the cost of finance are estimated based on their composition.

Emergency expenditures are not anticipated in advance, their appearance is not anticipated and has a random classification.