Methods of Determining Economic Effectiveness and of Pricing New Machinery and Equipment

The selection of optimal variants and the rational use of fixed capital depend largely on the methods used to evaluate the effectiveness of new machinery and equipment. These methods are all the more important because the decree of the Central Committee of the Communist Party of the Soviet Union and the USSR Council of Ministers "On Improving Planning and Strengthening the Influence of the Economic Mechanism on Increasing Production Efficiency and Work Quality" provides that the magnitude of the economic effect resulting from the implementation of scientific and technical measures be ratified as an indicator of the introduction of new machinery and equipment in the five-year plans of economic and social development of industrial ministries, associations, and enterprises.