Often within the analysis of financial performance of the enterprise it is required to calculate the average price, for this purpose there are several ways. The choice depends on what data the economist with what regularity the current prices and what structure of products were registered has.
Instruction
1. The uniform structure of goods meets at the enterprises of narrow orientation, for it it is quite simple to calculate the average price. There are two approaches being used: chronological and chronological weighed. The prices are always fixed documentary in certain timepoints that allows to watch price dynamics. However these time intervals can be both identical, and various.
2. In case values of the prices of uniform products were considered evenly, chronological approach is applied. According to it the average price is equal to a certain ratio between the sum of the prices and quantity of periods of time. Let data on the prices for half a year, and for the beginning of every month are known, then: Pm = (P1/2 + P2 + P3 + P4 + P5 + P6/2)/5, where: Pi are the prices of every period; Pm is the average chronological price; 5 – the total of months reduced by unit.
3. Respectively, for calculations in a year the number of the known prices will be 12 numbers, and in a denominator there will be 11. Actually, generally this size is considered in a half-year or year. If the prices were fixed unevenly, then the second approach works. As scales in this case periods of time act: Pm = Σ (Pi • ti)/Σti, where: Pi are the prices of intervals of ti; Σti – all settlement period.
4. To calculate the average price at the enterprise which is turning out diverse products it is necessary to break it into separate groups of uniform products. If there are data on volumes of the sold goods, then it is possible to calculate average arithmetic weighted price: Pm = Σ (P•Q)/ΣQ, where: P – prices of uniform goods; Q – corresponding volumes
5. In case goods turnover size is known, i.e. the sum of money received from product sales it is necessary to look for average harmonious weighted price: Pm = Σ(PQ)/Σ(PQ/P) where PQ is goods turnover volume in monetary units.