doi.org/10.52340/eab.2024.16.03.13

All events and processes of economic activity of enterprises are in interrelation, interdependence and mutual conditioning. One group of them is directly dependent on each other, and the other group – indirectly. Each event can be considered as a cause or consequence. If in the process of analysis this or that indicator is seen as the result of one or more reasons and presented as an object of research, then when studying the relationship it is called resulting , and the indicators that determine the behavior of the properties of the resulting indicator are called factor indicators.
Each of the resulting indicators depends on many different factors. The more detailed the deviations of the main factors, their causes and their impact on the value of the resulting indicator are investigated, the more accurate the results of the analysis and evaluation of the company's work will be. Without a thorough and in-deep study of factor deviations, it is impossible to draw reasonable conclusions about the results of activities, identify hidden reserves for improving production efficiency and make optimal management decisions.
It is true that the ACCA Paper F5 Performance Management textbook notes that the training material includes many elements that help simplify the learning process, but we cannot say this in chapter 10, which discusses the methodology for analyzing the main deviations, where the conditions of tasks are unclear, also, the methodology for analyzing the relationship between the resulting indicator and the factors affecting it.
First, let's consider the methodology for analyzing individual deviations, which the authors of ACCA Paper F5 Performance Management Chapter 10 offer with specific illustrative examples, and further - our comments and ways to perfect the analysis methodology.

Our version of solving the task:
When solving this task, the relationship between the resulting indicator (the cost of sold products) and the factors affecting its change (the volume of sale and the price of sale per unit of products) is unclear. However, the questions in the task condition are also incompletely asked, as if we were interested in deviations only
In our opinion, when solving the given problem, first of all, the relationship between the result indicator and the factors acting on it should be identified by a multiplicative model:

Therefore, as a result of reducing the sale of products by 500 units, the cost of the sold products decreased – by $30,000, and the increase in the sale price by$1 per unit of products led to an increase in the cost of sold products by $6,000.
As a result of changes in the volume of the sold products, in case of using the full cost calculation method, the company could not receive - 2500$ (500x5$) normative profit, and in case of using the marginal cost calculation method - 11500$ (500X23$).
Let's use the data in Table N1 and solve the same task with an integral method, which is considered in the economic literature at present as a more accurate and complete method than other traditional methods used in economic analysis, including the method of absolute difference, ბecause, as a result of the interaction of factors, an additional change in the resulting indicator joins not the last factor, but is evenly distributed between them.
When solving the above problem by the integral method, let's use the algorithms of the integral method, which are used under the two-factor multiplicative model.

Therefore, as a result of the reduction of the sale of products by 500 units, the value of the realized products decreased by 30250$, and the increase in the selling price per unit of products by 1$ led to the increase in the cost of the sold products by 6250$.
• The analysis of deviations discussed in Chapter 10 of the ACCA book F5 does not rely on the general methodology of the stages of conducting the analysis. In the economic literature, these stages are formulated as follows:
- Preliminary, general acquaintance with the research object and assessment of the results of work according to the quantitative and qualitative performance indicators approved by the business plan;
- Obtaining primary materials and processing analytical tables in order to reveal the reality of budgetary indicators and deviations from them;
- Identifying the factors that caused the variation of the resulting indicator and determining the value of the impact of each of them
- Formulation of specific proposals and measures by generalizing the results of the analysis.
• In the conditions of Examples 1, 2, 3, 4 in Chapter 10 of ACCA book F5, the requirements are raised imcompletely (as if we are interested in deviations from the indicators, only?!), and when solving tasks, the relationship between the resulting indicator and the factors affecting it is unclear. In our opinion, it would be better to show this relationship with the multiplicative model of deterministic factor analysis, and to determine the value of the impact of factors using the absolute difference, integral, or logarithmic method;
• The analysis of deviations using the methods proposed by us is methodologically more sophisticated and complete, and easier to perceive and understand

References:
• ACCA Managem:ent Accouting (MA/MFA), Kanlan limited, 2018;
• ACCA Paper F5 NT, Performance Management, Kanlan Limited, 2018;
• Jikia M. (2023). Comments on the Problems of Methodologe of Calculation by Regulatory Cost in the ACCA Management Accounting;
• Jikia M.(2019), Aome Aspects of Improving the Methodology of Economic Analysis, Ecoforum Journal 8(1);
• Jikia M.; Kharabadze E. (2018). Evaluation an Analysis of the Rational Strucrute of Sources for Assets Formation. Archves of Businenss Research 6(7);
• Kharabadze E.; Jikia M.; Deytermining Relevant an Alternative Costs While Decision Making. International Journal of Social Science and Economic Research 3 (5).;
• Management and Economics 7 92) 25-28;
• Jikia M.; Kharabadze E. (2018). Analyzing Decisions under Inflation. International Journal of Advances in M., Kharabadze E. (2018). Certain Aspects of Account Receivable and Paysble Analysis. Archives of Business Research 6 (6)
• Jikia M. (2017). Reserves os Costs Reduction of Goods in the Production of Essential Oils in Georgia. International Journal of Social Science and Economic Rsearch 2 (8)
• Jikia M. (2019). RECULIARITIES AND ADVANTAGES OF THE COST CALCU-LATION METHOD ACCORTING TO THE TYPES OF ACTIVITES. Ecoforum Journal 8 (2).

Keywords: Resulting indicator; Factor indicators; Major deviations; Favorable deviation; Unfavorable deviation; Quantitative factor; Deterministic factor analysis; Absolute difference method; Integral method.
JEL Codes: D24, P23, P42