Resumen de Production Cost Forecasting for a Given Volume of Output in Organizations: Case Study Based on Regression Model

Liana Haykaz Grigoryan, Arpine Sanasar Hakobyan

• Purpose: The objective of this study is the analysis and forecasting of  Enterprise Production Cost for a given volume of output on the basis of historical data.

    Theoretical framework: The theoretical framework of the study includes studies conducted by various researchers and professional regulatory bodies (ACCA) related to the  the Production Cost forecasting in organizations.

    Design/methodology/approach: The authors use trend analysis to determine a regression equation for the organisaton under investigation. Having the planned volume of production , it gives the opportunity to calculate the projected amount of production costs.  The financial and managerial accounting reports (from 2015 to 2022) provided by “Effect Group” CJCS were used to study the topic.

    Findings: Using the revealed dependences and the trend equation, the forecasting of Production Cost of the organization under investigation is obtained  for the next two reporting periods.     Research, Practical & Social implications: The main findings of the article can be useful in the practical management of businesses, for financial analysis and forecasting. In addition, the results of this research can be used in scientific and teaching activities in covering the issues of financial management and analysis.

    Originality/value:  The value of the study is the contribution it makes to the literature on the cost analysis issues. Therefore, the article can be of benefit to the scientific community with an interest in the study of the subject.