ABSTRACT
The experience of the difficult economic conditions which have perplexed industry during the post-war depression years has emphasized the need of a fuller knowledge of the varying behaviour of costs and prices under changing economic conditions. To calculate the difference, between the average current selling price each month and the estimated normal average, for the purpose of comparison and analysis, a sales price index would require to be constructed. To calculate from the production, the estimated total finished production of the various products which it was planned to achieve during a certain period, say a year, would be analysed to give the corresponding total production for the various sub-departments. Form IV shows how the analysis would be calculated for each product. The final summary of the analysis in a form suitable for presentation to a board or management committee meeting is illustrated on Form V.
