Details

Title

An Evaluation of Practical Applicability of Multi-Assortment Production Break-Even Analysis based on Mining Companies

Journal title

Archives of Mining Sciences

Yearbook

2017

Numer

No 1

Publication authors

Divisions of PAS

Nauki o Ziemi

Abstract

<jats:title>Abstract</jats:title><jats:p>In the practice of mining companies, the vast majority of them produce more than one product. The analysis of the break-even, which is referred to as CVP (Cost-Volume-Profit) analysis (</jats:p><jats:p>The article presents methods of evaluation of break-even (volume and value) for both a single-assortment production and a multi-assortment production. The complexity of problem of break-even evaluation for multi-assortment production has resulted in formation of many methods, and, simultaneously, various approaches to its analysis, especially differences in accounting fixed costs, which may be either totally accounted for among particular assortments, relating to the whole company or partially accounted for among particular assortments and partially relating to the company, as a whole. The evaluation of the chosen methods of break-even analysis, given the availability of data, was based on two examples of mining companies: an open-pit mine of rock materials and an underground hard coal mine. The selection of methods was set by the available data provided by the companies. The data for the analysis comes from internal documentation of the mines – financial statements, breakdowns and cost calculations.</jats:p>

Publisher

Committee of Mining PAS

Date

2017

Identifier

ISSN 0860-7001

DOI

10.1515/amsc-2017-0003

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