Production Efficiency Method. An important concept in the context of business is production efficiency, which is determined by several factors. The main factor that has the greatest impact on the productivity is the end-use value of the output. The method of measurement for this efficiency is the cost of production or the cost of use, also known as the replacement cost. This article discusses the significance of production efficiency measurement in terms of an enterprise’s short and long-term viability.
The development of accounting systems and techniques that facilitate decision making is known as the basic construction. The purpose of a company is to make products that are competitive in the market. A company’s success is largely determined by its ability to produce the highest quality output at the lowest cost. This can only be achieved if the production efficiency is well understood. This paper studies the effect of market fluctuations on the production efficiency during a business period.
The study finds that the production efficiency of rubber trees increases at the beginning of a new business period. The period is then increased until the end of the same business period. This increase in production efficiency is mainly caused by fluctuations in price and profit. In addition, the use of mechanized equipment in the production process increases profit. However, these factors do not affect the price elasticity of the rubber tree.
The paper also studies the relationship between risks and economic efficiency. To evaluate these risks, several analytical methods are used. The methods of risk analysis include the use of national income accounting systems, internal/external models, optimal hedging, inputs and expenses, firm sizing and other models. Based on the analysis results, a framework is created for assigning various levels of risks to economic production.
Another important result of this research is the importance of natural disasters in terms of affecting rubber production. Natural disasters have an effect on inputs and expenses required for rubber production. Natural disasters such as earthquakes, floods, drought etc can seriously reduce the demand for rubber products. This reduced demand leads to lower prices for raw materials, falling production efficiency, and higher prices for the product.
The study finds that natural disasters have a negative effect on the overall productivity of a country. It is, therefore, found that the prices for most goods are affected by natural disasters. This can reduce the profitability of a country and affect its ability to cover its own investment costs and cover its foreign investment costs.