Abstract:

This article presents the index-factor approach in management of material resources turnover, including inventory. It allows managers to identify a current problem, which affects the final financial result, during the management process. Thus, submitted practically oriented approach of index-factor method for calculation of the cost intensive turnover index and average level of distribution costs enables financial managers to develop reduction reserves of commercial and trading companies, to monitor the inventory turnover, helping to determine amount of released or the additionally attracted monetary assets as commodity stocks are frozen funds unavailable for using. The purpose of the study is disclosure of the analytical methodological approaches descriptive character of index method and showing a practically oriented approach in management process relying on relative and absolute values of activity cost, considering an example of commercial trading company and monitoring the average level of distribution costs that influence the sum of distribution costs of certain productive groups and the assortment structure of trade turnover.