Transition To Choose A Pov For Your Story

From an idea to write physical descriptions

The reasons of a distress of the enterprises, by some estimates, in 90% of cases lie in the sphere of a business management, inability to fit into conditions of the market, to reduce costs of production, to increase quality of production, to master new technologies. And only in 10% of cases consequences of the weighted structure of economy affect. Non-payments to which often refer in a justification of a difficult situation of the enterprises, are also in many respects generated by non-market or simply illiterate behavior of economic entities.

Obvious costs are alternative costs which take the form of monetary payments to suppliers of factors of production and intermediate products, i.e. payments of firm for resources which do not belong to it.

the payments of a salary for actually performed work estimated proceeding from price-work quotations, tariff rates and official salaries according to the forms and systems of compensation taken at the enterprise;

The consecutive increase in the sizes of the enterprise during some time involves decrease in costs of production of a unit of production, but since a certain moment the increasing and big sizes of the enterprise mean increase of average joint costs.

Let's explain it on an example. Let's say at the enterprise there is an equipment, and workers make production in one change. The businessman employed more workers, and work is conducted in two changes now. Productivity and profitability grow. The businessman employs still additional number of workers, will organize work in three changes. Growth of productivity and profitability is again observed. But if further to continue to employ workers, the further growth of productivity will not be. Such constant factor as the equipment, already exhausted the opportunities. The annex to it of additional resources will not give former effect now, on the contrary, from this time, efficiency of additional investments will decrease, an unit cost – to increase. If in some years to replace the equipment with more productive, there will be a growth of productivity. Additional investments will lead some time to growth of productivity and profitability. But there will come the moment when new, more productive equipment sputters out and efficiency of additional investments will start over again to fall, and costs for each additional unit to increase.

Conclusion. Inflow of the capital to the branch giving supernormal profit leads to falling of profitability to normal level in case of invariable demand for production of this branch, and, on the contrary, flight of the capital from the branch giving profit is lower normal, leads to growth of profitability to normal level in case of invariable demand for production of this branch.

Activity of any firm assumes implementation of expenses. The expenses forming product cost (works, services), are grouped according to their economic contents in the following elements:

the payments of the compensating character connected with an operating mode and working conditions including: extra charges and surcharges to tariff rates and salaries for work at night, overtime work, work in the multiple-shift mode, for combination of professions;

at the lowered price of an initial material resource if waste can be used for the main production, but with the raised expenses, for needs of vspomogalelny production, production of prime necessities or are realized on the party;

The participants of Society who brought deposits to authorized capital of Society not completely bear a joint liability according to its obligations within the cost of unpaid part of a contribution of each of participants.

The enterprises which are carrying out the activity under lease for the Depreciation of Fixed Assets element reflect depreciation charges on a complete recovery, both on own, and on leased fixed assets.

Firms, being guided by data on limit costs, make decisions on continuation or the termination of expenses, and consequently, change of output. For research of economic processes the concept of TRANSACTIONAL COSTS is used. Usually, defining the maintenance of transactional costs, allocate their types: costs of information search, measurement, costs of negotiating and conclusion of agreement, protection and specifications of the property rights, opportunistic behavior. However sometimes interpretation of costs of one look is possible as interpretation of costs of other look (in particular, measurement costs as costs of protection and specification of the property rights, costs of opportunistic behavior as measurement costs etc.).