THE ROLE OF ANALYTICAL APPROACH IN PLANNING OPERATING EXPENSES OF AN ENTERPRISE

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THE ROLE OF ANALYTICAL APPROACH IN PLANNING OPERATING EXPENSES OF AN ENTERPRISE

Journal Title: Zeszyty Naukowe Wyższej Szkoły Humanitas Zarządzanie - Year 2017, Vol 18, Issue 4

Abstract

Generating economic benefits from the sale of “labor effects” precedes expenses incurrence. The basic criterion for grouping them is a nature of expense method. From the point of view of planning manufacturing processes in an enterprise, it is important to learn about the future expenses estimates, thanks to the use of one of a priori cost accounting systems. The aim of the paper is to review analytical functions for determining the estimated expenses from operating activities, to study the effectiveness thereof against the mechanical approach. The following research theses have been included in the study. Within the analytical approach, due to the non-linearity of the costs by nature, the “good” quality of their “projection” in the depicted enterprise provides a logarithmic curve. Achieving the minimum amount of mean error (ME) of this function in the control area implies the accuracy of the forecast. For the expenses, which are not determined as by nature, satisfactory prediction accuracy appears to be “supplied” by the Holt and Winters models, taking into account possibility of seasonal fluctuations. Each time the distance between the standard deviation of residuals (SE) and the root of mean squared error (MSE) is a necessary condition, whereas the minimization of mean absolute percentage error (MAPE) within the control range a sufficient condition for this fit.

Authors and Affiliations

Gracjan Chrobak

Keywords

operating activities costs expenses forecasting exponential smoothing nonlinear functions

EP ID EP258449
DOI 10.5604/01.3001.0010.8284
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