Consumer Goods Fund

an earmarked fund set up at enterprises (associations) in the USSR to stimulate the use of industrial by-products in the production of consumer goods. The consumer goods fund is financed by profits derived from the sale of consumer goods and producer goods manufactured from an enterprise’s own by-products or from the by-products of other enterprises.

The formation of a consumer goods fund is authorized if the share of standard and substandard raw material does not exceed 25 percent of total material expenditures (not counting auxiliary materials) and if the products conform to contractual specifications. Of the total fund, 60 percent is used to expand the production of goods from by-products, to improve the quality of the goods, and to build and repair housing; 35 percent is used to pay bonuses to personnel participating in the production of goods using by-products and to cover social and welfare expenditures. Five percent of the fund is transferred to the corresponding centralized fund of the appropriate superior organization, where it is used primarily to expand the production of consumer goods from by-products; it is also used to organize contests, exhibits, and conferences.