possible to reflect to a fuller degree changes of production efficiency. Before answering this question let us consider the following example. There are two variants of production development: Production Paxelp~ant Y•rt•ot• -----------------------------------------------------------------Indicators Variants :--------------------------II ~------~-------------------------·------------------------------- Annual output ~f produce. million roubles (P) Prime cost of annual output of produce (C), million roubles Capital Investment In production funds(!), million roubles General efflelcney 100(P -Cl/1 minus Investment profitability, per cent 5 4.2 2 40 5 3.6 4 35 ----------------------------------------------------------------- As we can see for the equal volume of produce (5 mil lion roubles) the second variant of production development· requires twice as much of capital Investment accompanied by a reduction of profitableness from 40 to 35 kopecks. pn the basts of general efficiency Indicator the preference should be given to the first variant. However, this less capital-Intensive variant ts characterized by higher production running costs. Annually the cost over run comes to 600 thousand roubles (4.2•3.6}. Let us suppose that this cost over-run results from.overconsumptlon of fuel In transport operation. To compensate this overconsumption I t I s n ec e s sa r y to I n s t a I I ad d I t i on a I pet ro I e u m . ref I n I n g capacities. What is the volume of capital Investment needed to compensate the Indicated overconsumption of fuel1 This question can be answered easily. If we accept the normative coefficient of capital Investment efficiency to be 0.12 (as It Is recommended by Standard methodology of determining economic efficiency of capital Investment}, then to-compensate annual loss of 600 thousand roubles It Is necessary to Invest additionally 5 mill ton roubles Into the petroleum refining Industry (600/0.12}. Thus, the real lzatlon of the first variant will require not 2 mil I ton 
**Analysis**
The text discusses the efficiency of production variants, capital investment, and the need to compensate for overconsumption of fuel in transport operations. It involves calculations to determine the necessary investment to compensate for the loss. The text also compares the two variants of production development in terms of capital investment, production costs, and profitability.

**Category**
Industry, Natural resources and environment