Direct material budgeting peculiarities for aviation enterprises

Аuthors

Nikulina E. N.^*, Tarasova E. V.^**

Moscow Aviation Institute (National Research University), 4, Volokolamskoe shosse, Moscow, А-80, GSP-3, 125993, Russia

*e-mail: k508@mai.ru
**e-mail: elenavtar@mail.ru

Abstract

An important part of the budgeting system at the industrial enterprises is the budget for direct costs of basic materials. This budget reflects the need for basic materials and components for the production program, the size of the carry-over stocks of materials and costs of purchase of materials differentiated according to the months of the plan year. At the enterprises of aviation industry the formation of the budgets is associated with certain difficulties connected with a long production cycle and the unequal distribution of costs in stages of manufacturing. At the beginning of the production cycle, the need for basic materials is great. Then, at the stage of machining material costs are significantly reduced, as in the process of production auxiliary materials are mainly used. Another burst of need in the material, and hence the financial resources, is associated with the beginning of the build stage, especially Assembly facilities. This is because the production process involves expensive finished and semi-finished products, in particular various electronic equipment.
The article presents an algorithm of calculation of norms of material consumption per product, differentiated according to the stages of the production cycle. The algorithm takes into account the lead in time of the launch of structural elements of the product related to the date of completion of final Assembly. The proposed technology allows substantiate the need for material and financial resources more accurately, which creates conditions for the timely implementation of production tasks and increases the effectiveness of working capital management of the enterprise.

Keywords:

budgeting, direct material expenses, direct material expenses, production cycle

References

1. Khrutskii V.E., Gamayunov V.V. Vnutrifirmennoe byudzhetirovanie (Corporate budgeting), Moscow, Finansy i statistika, 2008, 464 p.
   
2. Shakhovskaya L.S., Khokhlov V.V., Kulakova O.G. Byudzhetirovanie: teoriya i praktika (Budgeting: theory and practice), Moscow, Knorus, 2011, 400 p.

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