%0 Journal Article %T DETERMINATION OF CONDITIONS ENSURING COST PRICE REDUCTION OF MACHINERY %A F. Novikov %A E. Benin %J Economics of Development %D 2012 %I Kharkiv National University of Economics %X A new theoretical method which is used to define conditions of reducing the machinery cost price has been proposed. This method is based on functional interconnection between the major heads of expenditure. It has been analytically proved that the machining cost price, depending on production efficiency has its extremum (minimum) specified by the cutting tool wear rate. This fact made it possible to determine the optimal conditions of machining according to the criterion of the least cost price. By means of diamond grinding new conditions necessary for machining cost price reducing have been determined. They are maintenance of the optimal cutting relief of grinding wheel working face, that ensures its fast cutting capability and increase in product efficiency. The influence of dimensionless coefficient that determines the dulling degree of a single-point diamond on machining cost price has been demonstrated. Knowing this coefficient, it is possible to compare different variants of grinding in a scientifically grounded way and choose the best one according to the criterion of the least machining cost price. %K machining cost price %K the prime machining process time %K diamond grinding %K tooling price %U http://www.ed.ksue.edu.ua/ER/knt/ee123_63/e123nov.pdf