ECONOMIC EFFECTS OF TIME PRODUCTION AND ADAPTATION OF COMPANY'S DEMAND

Abstract

Production costs are one of the basic elements of business success of companies. In their quest to reduce costs to an objective level, management of the company undertakes very different organizational and business procedures both in production and in other segments of its business.

Between the quantity of production of same product and the amount of costs incurred by the pro- duction of that product there is a close correlation in the sense that the volume of production emerges as a very important determinant of the amount of total business costs.

Determining dependencies between the volume of production (employment rate, the degree of capacity utilization) and high operating costs constitutes a critical setting, which underlies the classical theories of costs (Shmalenbah Melerovic are agents of the synthetic models and its dynamic costs that do not depart from the theory of production, while Stackelberg is the agent of synthetic models of sound production function). In the opinion of almost all the representatives of the classical theory of employment rate, i.e. the amount of production is the dominant factor of cost dynamics. Representatives of these theories, only verbally explain the influence of other factors and the dynamics of costs, without going into detail about their scientific and technical elaboration.

The recent theory of the dynamics of expenditure is the founder and leading carrier of Gutenberg, the approach is different. The basic thesis is that between the total amount of the costs and the level of employment and production volume there are no direct dependencies. The costs are a direct result of spending production inputs and their height is an indirectly determined scale of production and the labour process. Representatives of recent theory in developing the model analysis detailing the dynamics of costs as a result effect of many factors, not just the level of employment. In addition to the production volume, the subject of their interest, the effect of changes in company size, change in the quality of inputs, structu- ral change of the product range as well as the level and structure of operating costs and structure of costs.