ABSTRACT
Product prices are the monetary expression of product values. They are composed of production costs, profits, taxes, and other elements. The state-owned enterprises use the economic accounting system. The economic accounting system in the enterprises is an important factor in ensuring that they fulfill or overfulfill their production plans. Specifying rational prices so that the prices of the various types of products are in proper proportion to one another is an important lever for encouraging the enterprise to fulfill the variety plan. The Party and state's policy of low prices for producer goods is at present the most important basis for the formulation of the price plan for producer goods. When the prices of producer goods are low, the various branches willingly replace manual labor with machines, thus raising their technical levels. In the Soviet Union, the factory prices of all mass-produced or batch-produced products are approved by the Soviet government.
