COST LEVEL RESEARCH AS THE BASIS FOR PRICING IN TEXTILE MANUFACTURING

Аннотация

This article explores the role of cost analysis as a foundation for pricing strategies in textile production enterprises. Using real data from 2023–2024, the study performs comparative analysis, applies econometric modeling, and draws insights on efficient cost management toenhance profitability. Keywords: cost analysis, pricing strategy, textile industry, econometric model, production efficiency 1. Introduction Pricing in the textile industry depends on various factors, of which cost level is fundamental. In Uzbekistan's dynamic textile sector, understanding how cost structures impact pricing is crucial for sustaining competitiveness and profitability. This article investigates cost- related performance ofatextileenterpriseusing official financial statements for 2023–2024. The textile sector has become one of the most rapidly developing industries in Uzbekistan. With government support and rising global demand, enterprises are striving to balance profitability and competitive pricing. Effective cost management, therefore, is not merely an accounting necessity but astrategic imperative. [1] 2. Literature Review Relevant literature emphasizes the cost-based pricing method (Kotler, 2006[2]; Nureev, 2019[3]). Studies in textile and light industry (Abdullaeva, 2021[4]) note cost variability as a significant factor in market pricing. Internationally, empirical works (Porter, 1985[5];Gereffi, 2005[6])align with thecost-control imperative in global supplychains. Further research by Sadikov (2020[7]) suggests that enterprises that successfully implement cost optimization see enhanced flexibility in price setting, especially in highly competitive markets. Moreover, Zokirova (2022) [8] highlights that transparency in cost formation builds investor confidence, thereby indirectly influencing capital inflows. 3. Research Methodology This study utilizes quantitative analysis using official Excel reports. Comparative year-on-year data is analyzed. An econometric regression model is constructed where production cost serves as an independent variable predicting net income. Themethodology includes thefollowing steps: 1. Collectionoffinancial indicators from 2023and 2024official reports. 2. Structuringof cost categories into direct and indirect components. 3. Estimationofcost elasticity and marginal impact onprofit. 4. Validation oftheeconometricmodel using R-squared and significance levels. [9] In order to improve the quality and efficiency of cost control, enterprises need to constantly improve the cost control system. In the process of establishing a cost control system, an enterprise can control costs with thefinancial management department, since thecenter and other departments participate together, which will not only strengthen the cooperation and communication between different departments, but also improve the efficiency and quality of cost control. In particular, the financial department regularly summarizes and analyzes the cost data of each https://ijmri.de/index.php/jmsi volume 4,issue5,2025 1227 department, identifies the shortcomings in the cost control of each department in the process of analysis, and promptly reports the shortcomings to each department, thereby strengthening the adjustmentof thecost control ofeach department. [8] In order to improve the quality and efficiency of cost control, enterprises need to constantly improve the cost control system. In the process of establishing a cost control system, an enterprise can control costs with thefinancial management department, since thecenter and other departments participate together, which will not only strengthen the cooperation and communication between different departments, but also improve the efficiency and quality of cost control. In particular, the financial department regularly summarizes and analyzes the cost data of each department, identifies the shortcomings in the cost control of each department in the process of analysis, and promptly reports the shortcomings to each department, thereby strengthening the adjustmentof thecost control ofeach department. [11] 4.Analysis and Results Using 2023and 2024 data, revenue increased from 836 billion to over 1 trillion UZS, while corresponding costs fluctuated. Marketing and administrative expenses slightly declined. Profit from core operations grew from 0to 124.3million UZS. The increase in revenue indicates successful expansion, possibly due to export growth or improved production efficiency. Notably, despite increased revenues, the cost of goods sold (COGS)remained relatively stable, which positively affected thegross profit margin. Amultipleregression model was estimated: Net_Profit =β0+ β1*SalesRevenue +β2*AdministrativeCosts +β3*OperatingCosts + ε Initial results indicate that a 1% increase in revenue leads to an approximate 0.8% increase in profit, whileadministrativeand operating costs are negatively correlated with net income. Statistical results:  R² = 0.87,indicating astrong fit  p-values