Material balance planning

Material balance planning
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Material balance accounting is a form of economic accounting based on balancing inputs with outputs in terms of natural units (expressed in physical quantities as opposed to money). Material balance planning consists of a central planning board specifying a list of inputs required to produce one unit of output and then balancing outputs and inputs so that there is a balance between supply and demand.[1] Material balance planning was utilized to a limited extent in Soviet-style planned economies. Although it never replaced financial calculations, material balances became an established part of Soviet planning.

See also

References

  1. ^ Comparing Economic Systems in the Twenty-First Century, 2003, by Gregory and Stuart. ISBN 0-618-26181-8. "Material Balance Planning", (P.127)

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