JPRS ID: 9848 USSR REPORT ECONOMIC AFFAIRS

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• Content Type: REPORTS

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- JPRS L,/9848
15 July 1981
USSR Re ort
p
ECONOMIC AFFAIRS
(FOUO 9/81)
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JPRS L/9848
15 July 1981
~ USSR REPORT
ECONOMIC AFFAIRS
(FOUO 9/81)
CONTENTS
RESOURCE UTILIZATION AND SUPPLY
L~ng-Range Supply Planning Reviewed ~
(A. Baskin; VOPROSY EKONOMIKI, May $1) 1
REGIONAI. DEVELOPMENT
Rutg:~yzer Reviews Shamov's Book on Regional Management
(V. Rutgayzer; VOPROSY EKONOMIKI, Apr 81) 11
_ INTRODUCTION OF NEW TECHNOLOGY
Study of Cost-Effectiveness of New Technology Urged
(A. Borodkin; VOPROSY EKONOMIKI, Mar 81) 15
!
- - a- IIII - USSR - 3 FOUO]
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RESOURCE UTILIZATION AND SUPPLY
LONG-RANGE SUPPLY PL.ANNING REVIEWED
Moscow VOPROSY EKONOMIKI in.Russian No 5, May 81 pp 45-53
/Article by A. Baskin: "On the Long-Range Planning of Material and Technical ,
Supply"/
/Text/ On tlie basis of the economic strategy of the party the 26th CPSU Congress
set for material and technical supply the Collowing main tasks: "Td strengt~nen and
improve the statewide system of material and technical supply, t~ increase its role
and responsibility for the efficient use and saving of material resources and the
continuous supply of the national economy with r:~.w materials, materials, equipment
and spare parts."
The achievement of a dynamic balance requires the drafting of long-range plans in
all the spheres of social production, including the production infrastructure:
Material and technical supply, being a component of the infra~trueture, influences
many aspects of production activity. Therefore the development and improvement ~f
production presume the corresponding positive changes in th~ distribution and cir-
culation of products for production engineerin.g purposes and in the methods of form-
ing and implementing economic ties on their deliveries.
Here advanced forms of supply: direct long-term economic ties, the guaranteed com-
plete supply of consumers on the basis of contracts which are concluded with the
organs of USSR Gossnab; the complete supply of construction projects with materials
through the territorial organs of USSR Gossnab in accordance witla the orders of con-
struction and installation organs; additional services on th~ preparation of the
products being supplied for use and their centralized d~elivery, are playing an im-
port~?ne role.
- The development of the indicated forms of supply should be carried out according to
a plan, with allowance made for the current mater~tal prerequisites of the organiza-
- tion of the purposeful and efficient movement of products with a breakdown by sec-
- tors and regions. A long-range plan, which makes it possible to plan the end re-
sults of the activity of material and technical supply in unity with the conditions �
of their achievement, is needed for this. At present the level of the organization
of supply still does not meet the requirements of production. The proportion of
advanced forms of supply is inadequate, the volumes of products being delivered to
enterprises with a high degree of readiness for use are small, and so on. The lc;ng-
range planning of supply is a system of ineasures, which is aimed at the gradual
elimination of theae shortcomings and the increase of the quality of the service of
production.
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Here it is possible to distinguish two main aspects: the development of an effi-
cient system of the material supply of production and the planning of supply as a
sector of the socialist national economy, which carries out the distribution and
circulation of products for production engineering purposes. Both aspects should
be reflected in both the intermediate-term five-year plans and in the long-range--
20-year and 10-year--plans. However, the composition of the indicators of each of
these plans will be different.
The indicators of the former determine the direction and nature of the use of mate-
- rial resources in the national economy, the development of effective forms of the
distribution and circulation of products for production engineering purposes and
the results of the improvement of the system of the material supply of production
from the point of view of its influence on the intensification of the socialist
- econo:ny. The indicators of the latter determine the development and improvement of
the economic potential of the set of enterprises and organizations which form the
sector of material and technical supply. The sphere of each of the mentioned plans
has specific limits. At the same time they are closely interconnected and govern
_ each other. Here the forms of the material supply of production and the scale of
their functioning require the development of the material and technical base of
supply.
The devel~pment of material and technical supply is a part of the comprehensive
program of scientific and technical progress, which is being compiled for 20 years.
The goal of this part of the program can be defined as the tasks of supply for the
long-range future in conformity with the increasing needs of the served sectors of
the national economy and with the conditions which are necessary for the achieve-
- ment of the outlined results on the basis of scientific and technical progress. The
most general directions and consolidated indicators of an economic nature should be
established in the 20-year program.
The planning of supply as a system of the material supply of production should in-
cl~de the following indicators: the level of material expenditures (excluding
amortization deductions) per unit of the gross national product or the materials-
output ratio of social production (the value of the used natural resources per unit
of the produced national income); the stock-output ratio of social production,
wliicl~ is calculated as tlie ratio of the value amount of the stocks of products for
- production engineering purposes l,as a whole and excluding unfinished production and
- construction) to the gross national product or the national income;l the propor-
tion of products which are delivered in a state of complete readiness for consump-
tion in production.
This group of indicators makes it possible to program the main goals of supply for
the long-term future and to determine the fundamental demands on it on the part of
production.
1. Here it is necessary to ensure the possible completeness of the amount of
stocks, which include all production stocks, including those in agriculture,
and stocks of equipmen~--uninstalled and being installed. At the same time,
since it is a matter of the indicators f~r the material and technical supply of
production, products sub~ect to use for personal consumption should not be in-
cluded among the stocks.
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Among the indicators of the development of supply as a structural sundivision of the
national economy in the 20-year program it is expedient to envisage: the capital-
labor ratio of the sector of supply; its proportion in the total amount of fixed
production capital of the national economy; t'~e national income formed in the sec-
tor of supply per worker. Along with such indicators r.he scientific and technical,
economic and social goal programs of the development of the supply of individual
regions and territorial production complexes and the plans of ineasures on the solu-
- tioa of major problems of the improvemenr of material and technical supply for the
future should be an important part of the 20-year program. This part of the over-
all program is aimed at determining t?~e means for ~chieving the planned indicators
_ of a general economic nature.
_ The goal programs and measures being planned should ensure: the shortening of the
time between the moments of the appearance of the demand for a product and its
satisfaction, the acceleration of the turnover rate of stocks, the increase of the
reliability of supply, the stepping up of the influence of organs of supply and
marketing on the use of material resources and production capacities in industry,
construction, agriculture and transportation, the overall shortening of the time
~ and the decrease of the level of the costs of social production, the increase of the
keeping capacity of the produced output at all the stages of its movement, the gradu-
al elimination of difficult manuaZ labor in the perforniance of warehousing opera-
tions and so on.
The creation of the conditions for the acceleration of scientific and technical
progress by the adoption of advanced forms of the material supply of scientific re-
search and experimental design operations and of goal programs on the production of
new technology, as well as the extensive use in the sector of material and technical
supply of the achievements of the scientific and technical revolution in the area of
the processing of data on material flows, in the area of storage and in the area of
_ the transfer of products are especially important.
In addition to programs on the efficient use of material resources, during the com-
ing 20 years it would be advisable to envisage and implement the following measures:
the development of the system of praduction service on the prepar~tion of products
for use at enterprises of material ana technical supply; the organization of the
material supply of consumers under the conditions of the rental of the equipment
which they use occasionally; the creation of an integrated system of the automated
control of material flows and stocks in the national economy; the develflpment and
adoption of advanced technological processes, highly productive machines and equip-
ment, which ensure the complete mechanization and automation of loading, unloading
and warehousing operations in industry, construction, transportation and material
and technical supply; the drafting and adoption of long-range national economic
goal programs of the comprehensive development of the warehousing services of the
country and of the use of advanced types of packaging and wrapping.
Indicators, which approximate as much as possible the indicators of the five-year
plans which pertain to material and technical suppl,y, should be included in the
Main Directions of USSR Economic and Social Development for 10 Years. Therefore,
there should be included in the 10-year plans as the main indicators of supply as a
system of the material supply of production the balances on the most important
types of products, which specify the main directions of the use of resources during
each of the five-year plans. At the same time the expenditure part of such balances
may differ from the corresponding indicators in the five-year and annual plans of
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supply. Thus, with respect to the item "production and operating needs" it is ex-
pedient to take into account the distribution of material resources according to the
main directions of their use as applied to the backing of comprehensive scientific
and technical, economic ar?d social programs, as well as the programs of the develop-
_ ment of individual regions and territorial production complexes (for example, for
= the production of equipment and machines for the mechanization of loading and un-
loading, materials-handling and warehousing operations, for the implementation of
nature conservation and nature restoration measures, for the development of the re-
gions of Siberia and the Far East and so on).
The nomenclature of the balances, which will be elaborated within the Main Direc-
- tions of USSR Economic and Sacial Development for 10 I'ears, is of substantial im-
portance. It cannot be extensive and differentiated, since Tt should specify only
the main proportions of the material supply of production. At the same time the
number of these balances and the degree of aggregation of the output should ensure
the proportionate development of the main sectors of ~.he economy and the pursuit of
an effective investment policy. Thus, USSR Gosplan i~ ~laborating for the next
10-year period balances on 168 most important types of products, while USSR Gossnab
is elaborating them for 28 most important types of products.
- rioreover, in the 10-year plans it is advisable to use estimated and standard indica-
- tors of the material supply of production, such as the level of material expendi-
tures per unit of the gross national product or the materials-output ratio of social
production; the stock-output ratio of social produc.rion; the proportion of deliv-
eries of products, which are carried out by way of direct long-term economic ties
and guaranteed complete supply, in the total commodity turnover of the means of pro-
duction; the total value of the equipment being offered to consumers under the con-
ditions of rental, and so on.
The elaborltion and use of these indicators involve the solution of fun.damental
procedural and or~anizational problems. Among them the determination of the value
amount ot the products, in the sale of which the organs of material and technical
supply take part (at present it is customary to cail this indicator the wholesale
con:modity turnover of ineans of production), and the amount of deliveries in accord-
- ance with direct long-term ties is of great importance. At present both of these
- indicators are not fully planned and taken into account. Thus, the indicator of the
wliolesale commodity turnover does not cover the ma~ority of products which are de-
_ livered as transit goods without involvement in the settlements of supply organs,
although supply and marketing organizations, especially of the system of USSR Gos-
plan, do enormous work on the planning, organization and supervision of these de-
liveries. According to the estimates of the Scientific Research Institute of USSR
Gossnab, the wholesale commodity turnover ef the organs of material and technical
supply now includes not more than 65 percent of the volume of industrial output for
- production engineering purposes. At the same time a sigr~ificant portion of the
turnover of t~ie system of USSR Gossnab is duplicated in the indicators of depart-
mental supply organs. The problem of the indicator of the wholesale cammodity turn-
over concerns not only long-range planning. It is necessary to establish a uniform
- procedural approach to its determination.
By the end of the lOth Five-Year Plan the deliver~es in accordance with direct long-
ter.m economic ties amounted to 45 billion rubles, and their proportion in the whole-
sa.le commodity turnover of the statewide supply system exceeds 35 percent. However,
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the indicators of the development of this advanced form of supply are being planned
and taken into account only by the organs of USSR Gossnab. The task of enlarging
the scale and increasing the effectiveness of direct long-term ties, which was out-
lined by the 25th CPSU Congress and the decree of the CPSU Central Committee and the
_ USSR Council of Ministers of 12 July 1979, concerns all ministries and departmente
which are responsible for the supply of the national economy. It should acquire ac-
curate reflection in the corresponding indicators of long-range plans. With the
= transformation of the five-year plans into the main form of planning and with the
inclusion in them of the plans of the distribution of material resources among the
main fund holders, the development of direct long-term ties acquires for the first
time the appropriate basis in the area of the long-range planning of resources and
places on a practicable basis the solution of the question of concluding long-term
contracts.
As to the planning of supply as a sector, for this purpuse there should be specified
in the 10-year plans: the value amounts of the products which are sold with some
degree oE participation or other of the links of the sector of *.naterial and te~hni-
cal supply; the capital investments in the sector, its fixed capital; the amount of
reserve commodity stocks in the sector; the number of workers and the national in-
come produced in the sector per worker of it. The enumerated indicators should be
specified within the corresponding stages of ~the long-range goal programs of the im-
provement of supply, as well as of the drafting and adoption for each decade of a
comprehensive program of the improvement of the management of material and technical
supply in the country.
The Main Directions of USSR Economic and Social Development for the 10-year period
- have as a goal, on the one hand, to define more precjsely the accompl~shment of the
socio-economic tasks specified by the CPSU for the long-range future, including in
the 20-year comprehensive program of scientific and technical progi~ss. On the
other hand, they have the goal to give clear guidelines in the drafting of five-
year plans of economic and social developmer_t. The indicators and substantiations
of the 10-year plans may have alternate solutions of such a major economic and so-
cial problem as the development of material and technical supply. The indicated .
versions will depend on the chosen alternatives, which will govern the demands on
supplys and on the means which the national economy will have for meeting them. At
the same time the success of this measure will depend noC only on the a.mounts and
structure of the material, manpower and financial resources being alloc:ated, but
also on the efficiency of the prevailing economi~ mechanism.
One of the most important features of all the indicators and standards, which are
included in the five-year plans, is their address nature. The main indicators of
- supply as a system of the material supply of production in the five-year plans of
economic and social development are presented in the form of material balances with
respect to a consolidated products list and of plans of the distribu~ion of re-
sources among the main fund holders. It is envisaged that USSR Gosplan will elabo--
rate for the llth Five-Year Plan 409 material balances and 331 plans of the dis-
tribution of material resources among the main fund holders, which consume 65-85 per-
cent of these products, while USSR Gossnab will elaborate 216 material balances.
The indicators and economic standards on supply, which are approved by ministries,
associations and enterprises: the volumes of the deliveries of the main types of
material resources, which are necessary for the fulfillment of the five-year plan;
the assignments on the average decrease of the rates of consumption of the most
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Cmportant types of material regources, should correspond to these material balances
and plans of distrlbution.
With allowance made for these indicatars it is expedient to specify the 5-yea:~ (with
a breakdown by years) assignments for supply organs on the sales volumes of prod-
ucts for filling the orders of custom~rs in the list and assortment, including
through direct long-term economic items, on the guaranteed complete supply and on
deliveries from warehouses, including in a form ready for consumption in produc-
tion. These indicators are mandatory for supply and marketing systems, since their
goal consists in providing for various groups of consumers the most effective forms
of service in the process of the distribution of material resources and the circula-
tion of products. Direct long-term ties are characteristic of large enterprises and
production associations with a specialized demand, warehouse deliveriPS of materials
wilich are ready for production are characteristic of enterprises which are small
with respect to production volumes, and so on. The indicators approved for the sec-
- tor of material and technical supply should cover capital investments and the
amouilts of construction and installation work, the increase of working capital in
the reserve commodity stocks of products, the number of workers engaged in supply,
marketi.n~ and ottier production activ{ty, the national income produced in the sector
per worker, tl~e profit from basic activity (deliveries of products and the render-
in~ of productian services).
Al.l the indicators of material and technical supply in the five-year plans of eco-
nomic and social development (with the exception of the material balances and the
plans of distribution) should be established with a breakdown by supply and market-
ing systems (USSR Gossnab, the USSR State Committee for the Supply of Production
Equipment for Agriculture and others). Here the assignments of the goal programs,
the implementation of which is envisaged during the next 5-year period, will be one
of the bases of the elaboration and establishment of the indicators. The task of
scientific research organizations consists in the procedural backing of the planning
estimates, especially for the elaboration of the 5-year material balances and plans
of distribution. Apparently, the preparation of the drafts of long-range plans
should be organized differently. The main role here should belong to scientific
research organizations not only in the development of procedural materials, but
al.so in the elaboration of the indicators and programs themselves. As to the mate-
- ri:il balances, it is necessary to focus the efforts of scientific organizations on
the preparation of a standard base and scientific and technical forecasts.
i.et us examine some questions which have a bearing on the long-range planning of
material and technical supply as a sector of the national economy. In our opinion,
the development of a system of long-range economic standards is one of the decisive
conditions of the accomplishment of this task. It should include so-called stand-
ards of service (that is, the specific quantities of the amount and quality of work
of supply and marketing organizations per unit of output or of the work of the sec-
tors being served), standards of the use of resources (the specific quantities of
the consumption of material, manpower and financial resources in material and tech-
_ nical supply) and standards of the efficiency of the activity of material and tech-
nical supply organizations. The use for the same purpose of multifactor models of
economic growth is no less productive. However, the active use of these tools of
planning involves the need to conduct a number of studies and to elaborate funda-
mental questions wl~ich reflect the economic dependences and laws of the developmen[ ,
oE material and technical supply. First of a11 the concept of the sector of supply
should be formulated and substantiated theoretically. Here at least two questions
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muat be borne in mind: the compoaition of the sector and its place in the unified
national economic complex.
Often one has occasion to come across the assertion that the sector of material and
technical supply is the organizations and enterprises of the system of U5SR Gossnab.
Such an assertion is incorrecto first, USSR Gossnab covers only a portion (al-
through the bulk) of the operations on material and technical supply; second, such
operations as the repair of packaging and the processing of secondary raw materials
- are also included in the system of USSR Gossnab; third, it is necessary to base
oneself on the economic, and not the departmental, attribute.
The concept of the sector as a set of organizations and enterprises, which perform
similar economic functions in social production, is used extensively in the planning
and accounting of the socialist national economy. Here enterprises and organiza-
tions are lncluded within one sector or another on the basis of the main type of
activity, and it is customary to call such sectors "established" or "economic." At
_ the same time the concept of "pure" sectors, which are a set not of enterprises and
organizations, but of the subdivisions which belong to them and perform economically
similar functions or produce specific ~roups of products, has begun to be used when
elaborating intersectorial balances.
Some economists believe that the te~s "economic" and "pure" sector also fully per-
tain to material and technical supply. Here they assign to the "pure" sector not
only supply and marketing enterprises and organizations, but also the subdivisions
which are engaged in supply and marketing work at enterprises of industry, construc-
tion and other sectors of the national economy. It is impossible to agree with
such an interpretation, since it mechanically carries over the conditions of produc-
tion proper to the area of commodity circulation and the continuation of the proc-
esses of production in circulation. The independent existence of the product of
the l.abor of one production subdivision or another and the real possibility of its
compensatory alienation are a necessary prerequisite of the formation of a"pure"
sector. Only the independent subdivisions (for example, the shops of enterprises
or the units of production associations), the product of the labor of which is
suitable for sale (and is actually sold~, can be included in "pure" sectors. It
is possible to assign to them, for example, the shops for the production of refrig-
erators or special machine tools at motor vehicle plants. The activity of the sup-
ply and marketing services of industrial, construction, transportation and other
enterprises does not meet these conditions. As applied to material and technical
a supply the concept "pure" sector is devoid of econemic meaning. In our opinion,
it is necessary to assign to the sector of supply only those enterprises and organ-
izations, which are carried on the balance of supply and marketing activity. Here
the elaboration and use of precise criteria of the assignment of enterprises and
or~anizations to this group are of paramount importance.
However, what has been said does not mean that the sector of supply should be plan-
ned and developed without consideration for the development and improvement of sup-
ply and marketing services in production. Systemicity is one of the main prere-
quisites of the sound development nf the infrastructure of social production. At
the same time the specification of the exact boundaries of the sector is a neces-
sary condition of its planning.
The question of the place of material and technical supply in social production is
no less important. A number of authors have expressed the opinion that the basic
ti
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output of the sector of supply appears in the form of an activity which is consumed
at the moment of its performance. "The set of sectors of the production infra-
= structure... is not directly involved in the production of a product, but creates
the necessary m2terial conditions, the prerequisites for social production as a
whole. The output of the process of production in its sectors appears in the form
of an activity. It is a part of the expenditures at practically all enterprises of
the national economy, but it ts possible to consume its useful impact only during
the process of its production." And further: "An important feature of the sectors
of the ~nfrastructure is the coincidence of the consumption of the output with the
process of production, as a result of which standby capacities, the proportion of
which should be quite high, are vitally necessary for the material and technical
base of the infrastructure...."2.
Such statements, it seems to us, are a consequence of the improper interpretation of
the economic essence of the sector of supply. The majority of the living and em-
bodied labor consumed ir. this sector (more than three-fourths) is connected not
with the performance of services in the classic understanding of this word,3 but
with the performance oE various warehousing operations on the storage and transfer
of products, their resorting, subdivision and the making up of batches, the prepara-
tion for use and so on, which are the continuation of the processes of production
in circulation. K. Marx noted that the productive nature of such operations simply
"is veiled by the form of circulation."4
The above-enumerated operations, which determine the place of material and techni-
cal supply among the sectors of physical production, cannot be performed at the
_ moment of their consumption, ~ust as they cannot be consumed at the moment of their
performance. Moreover, when planning t~e development of the sector of material and
technical supply, it is necessary to direct one's attention to its ever increasing
industrialization, to the extensive introduction in it of the technological proc-
esses and organizational forms of activity, which are characteristic of mass flow
line and large-series production and are conducive to the uniform distribution of
- the expenditures of labor in time. Here what is meant is a high degree of the
typification and standardization of the operations on the preparation by the enter-
prises and organizations of material and technical supply of standard batches of
_ products. From them the same enterprises and organizations can subsequently form
in a short time and with a minimum of costs the batches of deliveries of products,
whicll the consumers need.
Such a situaCion does not belittle the importance of the activity of supply and
marketing organizations and enterprises, which is connected with the performance
of tl~e fu~ictions of circulation proper (inr_luding the replacement of the forms of
value). But in the future the increase proportion of the activity on the continua-
tion of ttie processes of production in circulation will be the decisive factor of
2. V. Zhamin, "The Infrastructure and Its Potentials," MATERIAL'NO-TEKHICHESKOYE
SNABZH~NIYE, No 11, 1979, pp 7, 11.
3. For example, the work of barbers and hairdressers, bootblacks, nurses who care
for children or patients and so on.
4. K, Marx and F. Engels, "Soch." /Works/, Vol 24, p 155.
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the determination of the place and role of supply in the sectorial structure of ~.he
national economy. This circumstance should be taken into account in the long-range
planning of the sector of aupply. It is necessary to have an idea about the enter-
prise of the future of this sector from the sEandpoint of not o,Zly its functions
and nature of activity, h~it also its conformity to the proposed (or ~utlined) taske
of the development of the economic potential. A scientifically sound conception of
the sector of material and technical supply is of decisive importance here,.
The calculations made of the capital-labor ratio ~or 1978 (according to the data of
the USSR Central Statistical Administration) attest that t:?is indicator in material
and te~hnical supply (only for fixed capital for supply and marketing purpoQes with
the exception of the organizations of the State Committee for the Supply of Produc-
tion Equipment for Agriculture) was equal to industry and was threefold greater
than in construction. How should this fact be appraised and how should one orient
or.eself toward the future? Should the capital-labor ratio in supply be on the level
of the achieved ratios or should it go beyond this point? A preliminary analysis
shows that the capital-labor ratio in supply under present conditions should be con-
siderably higher than in industry: the calculation of this indicator cnly with re-
spect to the active part of the capital ~evealed that in supply it is half a great
as in industry. The proportion of difficult manual labor is so high in warehousing
services for this reason. The capital-output ratio in supply is about one-fiftieth
as great as in industry. Thus, it is necessary to direct one's attention to a sub-
stantial increase of the capital-labor ratio in supply. However, here the shift co-
efficient of the work of supply and marketing enterprises must be increased, which,
other things being equal (even with a very high level of saturation of the sector
of supply with fixed capital), can lead to a decrease of the indicator of the
capital-labor ratio.
The problem of the change of the occupational and skills structure of the workers
of supply and marketing enterprises is also closely connected with this question.
While broadening the scope of production activity and developing such forms of the
material supply of production as the rental of equipment, it is necessary to satu-
rate the sector of supply with well-trained technical personnel and highly skilled
specialists of the product quality control ~ervices (including of semimanufactures
produced by the enterprises themselves).
The development of material and technical supply in conformity with the objective
needs of the socialist economy will ~ntail some changes in the national economic
proportions., As the sectorial structure of social production improves and the
necessary proportions are formed, the sectors producing products will turn over to
the sector of supply an ever increasing amount of work on the determination of the
demand for goods for production engineering purposes and their sale, that is, the
marketing functions. At the same time is also possible to e:tpect a more intensive
"transfer" of some production functions to the sector of supply. The proportion of
the sector in the aggregate materials inventory will also inevitably increase.
Since the portion of the value of the goods, which can be added as a result of the
continuation of the processes of pr.oduction in circulation, should increase, the
amount and proportion of the national income formed in supply and marketing will
change accordingly. At the same time certain changes, which are aimed at the in-
crease of the proportion of the output of modern machines, equipment and instru-
mer~ts, equipment for the packaging and wrapping of products for the mechanization
_ 3nd automation of warehousing processes and for ensuring the pzotection of products
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on their way to the sphere of consumption, should take place in the sectorial struc-
- ture of industrial production. The expenditures of society on the circulation and
storage of the produced output will naturally increase, but the savin~ of national
labor, which is obtained here, will ensure a significant increase of the efficiency
of social production,
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981
7807
CSO: 1820/193
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REGIUI~AL D~VL;LUYM~:NT
RUTGAY'L~ic 1tLVIi:~~S S1IAMUV' S BOOK ON REGI~PIAL *4ANAG~MENT
r;oscow V(IPkOSY iKUNQPiIKI in Rus~ian No 4, ~.pr til pp 140-143
[Iteview by V. Rutgayzer of book "Upravleniye proizvodstvom re~iona" [Production
lianagement of a Re~ion] by A.A. Shamov. tioscow, "Sovetskaya Rossiya~, 1979, 224
pages]
[Text] Many works recently published in our country are devoCed to the study o.f
the theory and practice of management of socialist production. And whila their
autkiors devote adequate attention to the analysis of the theoretical methodolog-
ical aspects of management of the national economy~ questions of regional produc-
tion management have as yet been little etudied. Those tendencies whose development
results in growth of the role of regional factors are examined in the book under re-
view. As a result A. Shamov makes a fully valid concluaion.; "The modern system of
management ~d its central element of plannin~ shculd very clearly perceive the ef-
fect of regional factors on the process of production and quite fully reflect this
influence in all the basic elements: aims, functions, principles, methods and the
like" (pp 6-7).
In tlie economic literature, tl?e term territorial (regional) management has several
- meaninps reflecting the different understandin~ of researchers of the given cate-
gory--it is mar..agement .of tt?e total aggregate of production operations of different
subordination on the territory of a reRion, management of production of local affil-
~ia~ion~ management of processea of utilization of the resources of the territory by
sectorial associations and enterprises and so on. In this connection the author
notes that "any mana~ement cannot but help be territorial, as all human activity has
spatial extension and one way or another is based on the employmento~ the attributes
of this space" (p 20). At the same time, it deCermines the necessity of singling
out two aspects in the production management of a reRion: territorial management
in the true sense and reRional manaRement.
Territorial management in tlie boolc means management work performed on the territory
- of this or that region in conformity wi~h plans of development of individual sectors
or departments--regulation of the use of the territory's resources, creation and op-
eration of facilities of the infrastructure. The importance of selection of such
an aspect in the production management of a re~;ion is due to the actual practice of
mana~;emetit. It is pointed out in the decree of the C1'SU Central Committee and the
USSIt Council of ~linisters on improving the economic mechanism (July 1979) that a
need exists for improving the development drafts of plans for the development of
sectors in a territor~al context. In this connection, it is advisable to
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~ H'OR UFFI('IA1. US[? ONLY
- provide a basis for the territorial framework of plans of. development of industrial
and production as~ociations and ot}ier elements of the national economy. The task
of selecting the territorial f ramework of program-goal mana~ement is also important.
It is likewise possible to speal: of the territorial aspect of mana~ement of inter-
sectorial processes.
Territorial management in the true sense, however, reflects only the sectorial, de-
partmental aspect of production management of a region. At the same time, this pro-
duction as an inte~ral social-economic organism requires an adequate system of man-
agement. A quality of such a system would be regional management which, in the op-
- inion of the author, integrates within the framework of the region necessary ele-
ments of both territorial and sectorial mana~;ement and at the same time does not
equal their sum. "R,egional management," A. Shamov writes, "may be characterized as
national-economic but compressed by the region's framework and by limitations
imposed on it ao that tl~e realization af regional interests does not contradict the
fulfilln?ent of nationul-economtc interests" (p 21) .
Por tiie Preaent, we cannot assert ~~ith suf.f.icient certitude thrit tlie existent system
oC productioii management of a re.~;ion is fully efficient and e'rfective. Unfortunate-
~ ly~ cases are still f.requent of departmental narrowness and :~ocal favoritism. The
bool: cites quite many examples of this. I3ut what are the dir.:~ions of regional
im~~rovement? The most important of them ie called further rationalization of econ-
omic regioualization of the country. In disclosing its defects, the author speaks
of the iieed of constructing a multilevel grid of ttie economic regions of the USSR
~'en~onstrably reflecting both the spatial ctiaracterjstics and the ti.me ranges of the
economic and social development of the national economy as a whole and of its indi-
vidual regional formations. There is propossd in particular a four-level ~~id of
economic regiotis of tiie USSR where eacli of the levels tias its levels of preplan-
analytical work anu its problems relating to this work. The suthor believes that
suci~ a~rid makes it possible "in the process of doin~ preplan-analytical work to
~o from global, strategic tasks of social-political and social-economic development
of the couritry as a whole to the concrete tasks of comprehensive development of
re}~ion:~ at different levels of tlie national economy and thereby to provide re~ular-
ity and continuity of plannin~ of economic and social development of the re~ions
Hccordiiig to five-yer~r l~eriods" 52) .
it is ~~osyil~lc: to ar~ue a~out tt~e "numi~er of levels" of economic regions~ the de~ree
of ttieir substanti~rion, taxonomy and the prol~lems relating to preplan-analyCical
worl: rit e~icli level, Lut todny t~lnnnin~; ia in proceas of bein~ reor~anized with ex-
~~~insiou of its ra~~~c~ to 'LU years and subsequent breakdo~,m into 10-year and 5-year
l~eric~ds; tlie need of improvinp, economic reRionaliz~tion in the approach taken by tF~e
autiior :is obviou~.
'1'I~e regioiial structure of our country's national economy consists of different ele-
uents tliat are unique in their ori~inality. Tfiis is to be explained by the histor-
ical, social-economic, national, cintural and other developmental �eatures of the
re~iotis of the: U:~SIZ. A. Stiamov has proposed a classification of national-economic
rc~giocis. Ttie following types of regions were selected: economic re~ions; regions
with their own form of state system; regions formed in accordance witti administra-
tive territorial division of ttie union republics; regional production complexes.
~or each of ttiern, basic princii~les of organization of production management were
formulated.
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Iii our opinion, on exam3.nint; ttiis classification, a numUer of questions have to be
answered. [~ie consider quite debatable, for example, the assigning of all regions to
- producCion complexes. Th~is, the economy, let us ~ay, of the i~orth Caucasus economic
region, wt~ose territory includes four autonomous republics, two krays and one oblast,
- caniiot be considered a single production complex~ if, of course, this term is not
interpreted too broadly. It w~uld also be hardly correct to call all regions with
~ their own state systems national-production complexes. Consequent';, the develop-
ment of a practicably acceptable classification of the country~s re ~ions has still
not been completed.
Ttie efficiency of a regional economy is determined first of all by the degree to
_ whicti it coiitributes to improving, the effectiveness of utilizatioa of the economy as a
whole. At tt?e ~ame time, the economy of an individual region has its own internal
structure reflecting tkie objective features of lta development. In etn~hasizin~ this~
tlie auttior points out that a territorial economy cannot be adequately effective if
tlie internal proportions of tlie refiion~s economy do not provide for it a special
place in socialized diviaion of labor. Hence the task of reFional mAna~ement is "to
find its elements in the cliain of sectorial and intersectorial ties entered into at
higt~er levels ~nd to unite on a compact territory all the par~s into a production
complex, combining the interests of sectors and region" (134).
In the book,llagestanskaya AS5R is used to show the directions of the solution of this
task; there were analyzed in particular the way of improvin~ the economic and organ-
izational mechanism of regional management; questions were examined of manafiement
through rational utilization of labor reaources, training of mana~ement cadres~ the
establishment on the Caspian coast of a recreational complex and so on. At the same
time the author emphasizes that the most important taek of boosting the efficiency
of the system of regional management is the fuller utilization of regional rights
granted them by the USSK Constitution as well as by the constitutions of union and
autonomous republics. Its solution creates the basis for attaining the necessary
correspondence between sectors and regions, permits the top levels to be relieved
from fulfilling funtions uncharacteristic of them and provides the opportunity for
local management organs to ensure comprehensive economic and social developmen*_ of
a region while taking into consideration the specific conditions of operating an
economy on its territory. In our view, such a formulation of the problem is correct
inasmuch as many negative aspects of regional management organization occur not
because regional organs of management ostensibly do not have sufficient rights but
because they do not use them sufficiently fully.
In examining the contents of the reviewed work~ we only touched certain debatable
points contained in it. It is also necessary to speak of the book~s defects.
The author hae included in th~ sphere of his investigarion a wide range of questions
of regional management, beginning with its theoretical bases and ending, for example,
witli an analysis of the atructure of Dagestan's population or a description of the
health-resort zone of the republic's Caspien coast. It is clear from this that the
examinaCion of a number of questions required a high degree of thoroughness and sub-
stantiation. Thus, A. Shamov writes of the "possibility of creating a kind of coor-
dinating organ for the individual economic region, formed while taking into accouat
_ the conditi,ons of a truly well-developed regional production complex (p 77). But
providing a basis of need for the creation of such an organ is not to be found in
the book, nor are i~s tasks and functions disclosed. while the indication that "this.
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organ is boimd to play the role of a unique connecting link between sectorial tnin-
. istries and local organs of regional management" (p 78) actually does not disclose
the content of ttie question.
The same could be said concerning the firat two components of the zhree-part man-
agement structure of the regional production complex proposed by the author (p 186).
In general the auttior examines more ttse organizational element of regional management
than planning and the economic n~ec~anism. This to a certain degree leads to the sep-
aration of his proposals on i.mk,roving the organizational structure of management from
the entire system of ineasur~;s for improving the management of regional economy.
Our country's economy represents, as we know, a single national-economic complex,
and its management is based on the use of unique methods and f orms of s~cialist man-
aF;ement. At ttie same time, ttie principles of regional production management require
that these methods and forms take into account in their composition the social and
economic~ natural, national and other developmental features of each republic, ob-
last, kray and so forth. In the book attention is correctly paid to this principle
of organization of regional management of production, but it is not realized every-
where. As a result, some problems of utilization of the economic and organizational
mechanism in a region are not shown in the work, while others are elaborated without
~ sufficient consideration being given to regional features. For example, in examin-
ing the economic mecnanism of regional mangement, the author speaks of the need of
usin; the "complex tool of the influence of planning on the regional economy"
' (p 141) , but of the regional problerns of the economic mechanism, the book elucidates
only certain questions of improvement of rent payments and payment for resources.
A number of important aspects of improvement of economic regional mana~ement methods
- remain outside the framework of the study; they include, in particular, the problem
of takin~ into consideration in the sectorial mechanism the special features of lo-
cation of enterprises and so on. In the analysis of problems of program-goal man-
agement, little space is given to rep,ional features of compreliensive profirams, and
ttiose features uf tliese pro~rams tliat are singled out in the monograph are charac-
teristic not only of regional but also of sectorial and national-economic programs.
In dealinR ~~itli tlie cadre prol~lem, tl~e re~ional aspect is not adequately developed.
A sip,�nificant defect of ttie reviewed book is that it almost completely bypasses the
question of management of tlie development of certain social processes. The manage-
ment of maiiy of them is impossible without an improvement of regiornal management as
a wliole. Tlie fact is that tlie development of production in any re~ion presupposes
an adequate level of solution of social problems connected with the satisfaction of
workers and members of tiieir families in terms of housing, medical services, educa-
tion, leisure and recreation. A. Shamov speaks of these questions only in passin~.
On the wliole, the reviewed monograph is an interestinq 3tudy that can be recommend-
ed to a F~ide ran~e of readers.
CUPYIZIGc?T; Izdatel~stvo "Pravda", "Voprosy ekonomiki", 1981
7697
- CSO: 1820/1'J7
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INTRODUCTION OF NEW T~CHNOLOGY
STUDY OF COST-EFFECTIVENESS OF NEW TECHNOLOGY URGED
Moscow VOPROSY EKONOMIKI in Russian No 3, Mar 81 pp 143-147
/Article by A. Borodkin (Kiev): "The Measurement and Calculation of the Cost Ac-
counting Economic Impact of New Technology"/
/Text/ The organization of the systems calculation of the economic impact from the
introduction of scientific and technical develapments will make it possible to com-
bine in a single system the designing, planning and material stimulation of new tech-
nology, to increasethe analyzability of accounting data and to obtain reliable in-
formation on the actual influence of new technology on the results of the activity
of associations and their structural links.
The indicators of the fulfillment of the plans of the introduction of new technol-
ogy, which are reflected in statistical reporting, as a rule, are incomparable with
the indicators which characterize the overall financial and economic activity of
the association and enterprise. In the Method (Main Statutes) of the Determination
of the Cost-Effectiveness of the Use in the National Economy of New Technology and
in the instructions on the compiling of reports on forms 2-nt and 10-nt it is
stated that the actual expenditures on the introducCion of ineasures on new technol-
o~y should be determined on the basis of accounting data. However, as in the past~
associations and enterprises draw up these reports on the basis of only the pro-
jected estimates of the economic impact and sample data. When comparing the totals
of the economic impact of new technology according to form 10-nt with the amount of
the decrease of the production cost according to form No 6"Report on the Cost of
Commodity Production~ discrepancies between them a~'e often found.
The role of accounting, which is called upon to provide with reliable data the
course of the fulfillment of the plan of the actual economic impact in individual
ministries, tl?e most important directions of scientific and technical progress,
as well as for the enterprise, the association and the ministry as a whole, is es-
pecially increasing under present management conditions. In the decree of the CPSU
Central Committee and the USSR Council of Ministers "On Icnproving Planning and
Strengthening the Influence of the Economic Mechanism on Increasing Production Ef-
ficiency and Work Quality" the acceleration of the implementation of scientific and
technical discoveries and developments, which are aimed at increasing the growth
rate of the productivity of social labor and~product quality, is stipulated among
the measures on increasing the level of glanning. To accomplish the set task, the
indicator of the economic impact from the implementation of scientific and techni-
cal measures will become firmly established for industrial ministries, associations
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and enLerprises startinfi with the ilth Five-Year Plan in the five-year plans of eco-
nomic and social development (in the section on the introduction of new technology).
It is expedient, in our opinion, to examine the procedural and organizational pre-
requisites of the introduction of the systems calculation of the actual economic im-
pact. The urgency of the elaboration of these problems has been noted in the eco-
nomic literature of recent years. There has been raised, in particular, the ques-
tion of the creation of an accounting data system (UIS) of scientific and technical
, progress, which, on the one hand, will become a part of the general subsystem of
acc~unting in the automated control system of the association and, on the other,
_ will provide other subsystems with information. When forming the accounting data
system of the development of science and technology in an association of a sector
it is necessa~-y to solve a number of questions, in particular, to determine the
~ composition ~f the problems and their interrelationship with the other subsystems
_ of the automated control system and the content of the output data (the indicators),
to select the information support and others.
The following, in our opinion, may be the main ways of creating an accounting data
system of the economic impact of new technology:
- the inclusion of the c~st accounting economic impact of new technology in the object
of accounting and in the group of its tasks;
the creation at each association and enterprise of an integrated data system of the
accounting of the development of science and technology, which includes the elabora-
tion of a uniform methodology of maintaining the work progress record, statistics
ancl accountin~, as well as standardized primary and accounting documentation and
intraplant reporting;
the augmentation of the plan of accounts of accounting with new accounts for the
reflection of the economic processes of scientific and technical progress and the
making of the appropriate changes in the organization of synthetic and analytic ac-
counting and in the structure of the accounting ledgers;
Che e~;tensive use of computer equipment for pr~~cessing data on the calculation of
the economic impact;
the assignment of the procedural and organizational management of the calculation of
the costs of new technology and its economic impact to the chief accountant of the
association.
Only the cost accounting economic impact of new technology can be the object of ac-
cotinting at ttle level of associations (production and scientific production) and
their structural li~ik~. Each association, in implementing the main principle of
cost accounting--the comparison of the expenditures with the results--is interested
tn ti~e introduction uf that new technology, which reduces the production costs and
improves the end results of cost accounting activity. Therefore the establishment
of a causal relationship between the economic impact of new technology and the re-
duction of the production cost by means of its introduction is of primary impor-
tance for the planning and calculation of the actual economic impact, as well as the
making of an economiG analysis and the con?piling of reliable reporting.
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The analysis of the reporting data of production associations shows that quantita-
tively these indicators never coincide. The size of the differen~e between them is
_ influenced by many factors, one group of which promotes its increase, while another
promotes its decrease. To the first group belong: the allowed unproductive ex-
penditures, the direct overexpenditure on costing items; the differences in account-
ing by statistical forms (i+n form 10-nt the saving from operating costs is also
taken into account in the saving from the reduction of the production cost due to
the new technology; according to form No 6 the actual reduction of the production
cost reflects the results of only the main activity, the estimated saving on un-
finished measures, with respect to which it is impossible to determine precisely the
amount of performed work and the obtained impact, is included in the saviilg from the
reduction of the production cost by means of the introduction of the new technology).
The failure to use assets according to the line items and estimates (for various
reasons, including the inclusion of overstated amounts in the planned costings)
first of all is assigned to the second group of factors which promote the decrease
of the above-noted difference. Moreover, it should be taken into account that the
estimated amount of the saving from the reduction of the production cost due to the
introduction of new technology, in which the costs connected with the adoption of
certain measures or others are not included, is reflected in the statistical report-
ing. The saving from the reduction of the production cost only due to the introduc-
tion of new technology is included in the statistical reporting. Thorough consider-
ation of the stated factors is necessary when compiling the reports and analyzing
- the obtained economic impact and its interrelationship with the reduction of the
production cost.
One of the important questions of the planning,calc~lation and economic analysis of
the cost accounting impact is its measurement on the level of the association and
its structural links: production units, branches, shops. The selection of a syn-
thetic, generalizing indicator of the cost accounting economic impact is of great
importance. Let us examine this question in more detail.
The economic impact, which is expressed by the increase of the profit, cannot be
shown with respect to either the structural subdivisions of the association or the
_ components of the production cost, since in the price for the technology being re-
placed and the new technology there are no data on the proportionate involvement
of the structural links which are engaged'in its production or introduction. Con-
sequently, the increase of the profit does not make it possible to establish the
influence of new technology on the reduction of the actual production cost during
the period under review with respect to the branches and shops. Therefore the in-
dicator of the decrease of the production cost is more acceptable for the measure-
ment of the cost accounting impact.
The production cost, being one of the indicators of the cost accounting activity
of associations and their structural links, reflects the level of the utilization
of material, manpower and monetary resources. The decrease of the production cost,
including as a result of the introduction of new technology, is one of the condi-
tions of the fulfillment of the plan on the profit. In accounting~the expenditures
on previously assimilated and newly assimilated products are attributed to the
costing items and the economic elements; therefore~on its basis it is possible to
determine the decrease of the cost of both all the output and the output which was
produced after the introduction of the new technology, and, in addition, to
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identify the cost accounting impact from the introduction of new technology with
respect to the str�ctural links of the association. Thus, the decrease of the. pro-
duction cost due to the new technology at the level of the association and the
enterprise will function as a component, an analytical element of the general
measurer "profit" or "increase of the profit" and will characterize the influence
of the new technology on tne production costs.
The cost accounting im~act with respect to the incr:ase of the profit from the in-
trodnction of new technology can be specified in the account "Sales" of accounting.
~ But here the measurement and calculation af the cost accounting impact from the re-
duction of the production cost (the saving of current expenses) as a result of the
introduction of new technology present a number of inethodological and organization-
al difffculties. First of all the organization of the reliable calculation of the
ct~anges of the norms of current expenditures, which result from the introduction of
new techno.logy, should be arranged. Here not every decrease of the current rates
oE consumption of material, manpower and monetary outlays should be considered in
thE end as the cost-effectiveness of production. A revision of the current norms
o~ material and manpower expenditures, which is caused by many factors, is made an-
nually at each association. Therefore, to determine the obtained saving only the
changes of the standard expenditures as a result of the introduction of new tech-
nology should be taken into account.
The calculation of the changes of the norms under the influence of scientific and
_ technical progress can be carried out by two methods: 1) the actual method--ac-
cording to the most important items of expenditures (raw materials and materials,
purchased semimanufactures and components, the wages of production workers and
others) by compiling special notices; 2) the estimate method--on the basis of the
technical and economic characteristics before and after the implementation of the
measures on new technology with respect to the shop and plant outlays, the outlays
on the maintenance and operation of equipment and other combined outlays. In the
case of the second method the economic impact from tha change of the norms is taken
to be equal to the estimated economic impact on the condition of the complete im-
plementation of the measures on all the technical and economic parameters.
At the association and enterprise it is expedient to make the calculation of the
economic imnact from the introduction of new technology in the following sequence.
'The planned (estimated) impact for the year and until the end of the year under re-
view with an indication of the costing items, for which a saving will be obtained,
is calculated for eacl~ measure, Then the estimated economic impact, which is ob-
tained from the implementation of the measure on new technology, is determined on
:.e basis of the data on the actual output of items or the amount of work per-
formed. The actual amount of the economic impact from the implementation of ineas-
ures is calculated on the basis of the information on the actual current expendi-
tures, which are connected with the implementation of each measure, and for the
association as d whole. If it is impossible to establish the estimated economic
impact for individual measures due to the lack of data on the changes of the stand-
ards of current expenditures or on the output actually produced, the average month-
ly planned amount of the economic impact is taken into account.
In the standard documents in force on the calculation of the economic impact~its
determination for the year is emphasized. However, in order to reflect the influ-
ence of scientific and technical progress on the economic results of the work of the
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association and its cost accounting links, first of all on the reduction of the pro-
duction cost, the absolute actual amount of the impact each month has to be known.
The work progress report on the actual economic impact should be kept on a special
,
cgrd which is started for each measure. It is expedient to indicate on it the code
of the measure, the number of the section according to the plan of the development
of science and technology, the start and completion of implementation, the Zumber
and date of the certificate of implementation. The annual economic impact is cal-
culated on the basis of the planned output of products with an indication of the
costing items, for which the obtaining of a saving is anticipated. 'rIere the code
- of the item and the amount of the impact are recorded. The economic impact is di-
vided into three periods: the accounting period, until the end of the year under
review and the month. This is important for planning, as well as for monitoring the
' receipt of the impact. The monthly planned amount of the economic impact can be
used with respect to the individual measures as the actual impact in those instances
when it is not possible to calculate the amount of the impact for the performed
_ amount of work or to determine the actual expenditures on the implementation of a
- measure.
The estimated economic impact by costing items is determined montlily on the basis
of the data on the output of products and the change of the current standards. The
data on the actual expenditurPs for each measure at the computer base are taken from
the computer printouts. The calculation of the expenditures in analytical account-
ing should be made with xespect to the same items which were taken when calculating
the economic impact.
It is necessary to include in the total of the actual expenditures not only the di-
rect expenditures, which were made during the month under review and are connected
with the implementation of the corresponding measure, but also the total of the de-
viations from the norms, which will be established in those instances when a change
of the norms is made, while the production resources are consumed in accordance
- with the old norms. On the card the obtained amount of the economic impact is
shown by shops and corresponding items. This will make it possible in the end to
make a systems reflection of the actual impact and to link it with the results of
the work of the branches and shops of the association.
The data of the work progress report on the expenditures on the implementation of
measures on new technology and the actual economic impact at the end of the month
are subject to cumulative correlation. The information on the expenditures and the
results should be grouped so that it could be used for the reflection of the imple-
mentation of the measures on the basis of the importance of their inclusion in the
plan, as well as for the compiling of the statistical reports on forms 2-nt and
10-nt. The grouping of all the measures according to the importance of their in-
clusion in the plan with the assignment to them of the corresponding code is car-
ried out in accordance with the state plan of USSR national economic development,
the state plan of the national economic development of the republic and the plan of
the association (enterprise). Within each group the measures are broken down into
the following directions: the introduction of advanced technology, including the
assimilation of technolfl gical processes in accordance with purchased licenses; the
mechanization of production processes; the automation of production processes; the
introduction of computer hardware; measures on the improvement of labor and manage-
ment; other measures on the introduction of new technology (on the improvement of
product quality and others).
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For the measures, with respect to which a systems calculation of the changes of the
norms for all costing items is made, the total of the estimated economic impact is
calculated by multiplying the difference between the former norm and the newly in-
troduced norm for each item by the actual production volume during the month with
allowance made for the change of the balances of unfinished production. The latter
includes the produced finished output and the produced parts, the blanks and the
performed operations on parts. For the measures, with respect to which the calcula-
tion of the changes of the norms is made only in the area of direct expenditures,
the estimated impact is determined by multiplying the difference between the former
- norm and the newly introduced norm for each item by the number and list of the pro-

_ duced products. For the measures, with respect to which it is technically diffi-
cult to identify the changes of the standards and the amount of the performed work,
the amount of the impact is taken to be equal to the planning estimate of the im-
pact on the condition of the fulfillment of all the parameters.
A report, the entries in which should be made in the chronolo~ical order of the im-
plementation of the measures on the basis of the certificates of implementation,
the documents on the calculation of the expenditures and so on, should be made
monthly for the calculation of the cost accounting economic impact from the imple-
mentation of ineasures on new technology. When using computers it is necessary to
record the certificates of implementation, which are receive~ by the accounting of-
fice, to bundle them and then turn them over for punching. The established amounts
of the estimated economic impact by items and for each measure, the expenditures on
implementation b~ items and measures and the calculation of the amount of the actual
economic impact according to the same attributes are mandatory types of input in-
formation.
The making of a general calculation of the changes of the norms and the actual eco-
nomic impact of new technology is impossible without the further improvement of the
plan of the accounts of accounting. The system of accounts should be organized so
that the workers could group the data according to the actual economic impact of
~he new tectinology, the actual expenditures on its introduction and the sources of
financing. The plan of the accounts of accounting should be rearranged so that its
content would be oriented toward the development of economic data processing equip-
m~~it and the use in accounting of modern hi~h-speed computers.
3~or. calculating tl~e obtained cost accounting economic impact from the reduction of
the production costs it is expedient, in our opinion, in the plan of the accounts
of accounting to provicle for tlle following accounts: "Change of the Norms," "The
Economic Impact From the Introduction of New Technology." In the first account the
total of the changes of the norms with respect to the corresponding items of ex-
penditures should be taken into account; in the second in the balancing with the
debit of rhe account "Change of the Norms" it is recommended to take into account
. the total of the estimated ecenomic impact in accordance with the certificates on
the introduction of new technology, rationalization proposals and other measures.
The amounts of the changes of the norms, which are ascertained according to the no-
tices on the change of the norms, as well as by means of estim~tes, should be en-
tered with respect to the account "Change of the Norms" in the balancing with the
account "The Costs of Basic Production According to the Norms."
Sucti a balancing of accounts is necessary in order to reflect the equality of the
totals according to the debit and credit of the mentioned account. Here the actual
expendit~xres on the output of products according to the changed norms, which in the
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total with the identified changes will be equal to the standard cost of the output
produced, which is reflected according to the credit of the account "The Costs oi
Basic Prod::ction According to the Norms," will be reflected with respect to the
~ debit of the account. The introduction of the indicated accounts will make it pos-
sible to reflect in the system of accounts the influence of the introduction of new
- technology on the reduction of the production cost and to identify the results of
this influence on the increase of production efficiency.
In connection with the introduction of the systems calculation of the expen~itures
on the introduction of new technology and the actual economic impact the current
journal entry form of accounting should be augmented by three summaries: "Expendi-
tures on the Introduction of New Technology," "Expenditures on Scientific Research,
Experimental, Planning and Design Operations," "The Cost Accounting Economic Impact
of New Technology." In the first it is necessary to take into account the expendi-
tures on the implemen~ation of ineasures on new technology and the sources of their
financing; in the secor~d--the expenditures on scientific research, experimental,
planning and design operations according to the same parameters as in the first; in
the third--the actual cost accounting economic impact from the measures on new tech-
nology.
The obtaining of information for compiling the statistical reports on forms 2-nt
and 10-nt, in which it is expedient to stipulate such an indicator as the actual
economic impact, which is determined according to the most important directions of
scientific and technical progress, becomes possible on the basis of the developed
system of accounts and the organization of analytical accounting. Al1 this will
make it possible to provide an objective assessment of the effectiveness of the
measures being implemented.
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981
7807
CSO: 1820/166 ~ND
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