Download the presentation of production costs and profit. Firm costs

Questions:
1. Economic costs. External and
internal costs. Normal profit as
cost element
2. Production costs in the short run
period
3. Marginal cost
4. Law of diminishing returns
5. Production costs in the long run
period. scale effect

1. Economic costs. External and internal costs. Normal profit as an element of costs

Production costs are costs
related to attracting economic
resources needed to create
material goods and services.
The nature of costs is determined by two
key provisions:
any resource is limited;
each type of resource used in
production, has at least two alternative
way of application.

To meet all the diversity
needs of economic resources never
is enough (which causes
the problem of choice in economics). Any solution
about their use in the production of this or that
other good is connected with the necessity of renunciation
production of other goods and services.
Remembering the production curve
opportunities, you can make sure that it
bright embodiment of this concept.

Costs in the economy are associated with the abandonment of
production of alternative goods. In connection with
this is all the costs in economics
accepted as an alternative (or
imputed).
This means that the cost of any resource
involved in material production,
determined by its value at the best of
all options use
this factor of production. In this connection
economic costs are interpreted as follows
way:

Alternative or economic (imputed)
costs are the costs associated with
use of economic resources in
production of this product, evaluated in terms of
lost opportunity to use the same
resources for other purposes.
From an entrepreneur's point of view, economic
costs - payments that the firm makes
resource provider to divert those resources away from
use in alternative industries.
Out-of-pocket payments that a firm can make
be external and internal.

In this regard, we can talk about external (explicit,
or monetary) and internal (implicit, or
implicit) costs.
External costs are the payment for resources
suppliers who do not belong to the
owners of this firm. For example, salary
wages of hired personnel, payment for raw materials, energy,
materials and accessories provided
third party providers, etc.
The firm may use certain
resources that belong to her. And here it follows
talk about internal costs.

Internal costs are the costs of
own, independently
resource in use. Internal
costs are equal to cash payments,
which could be received
entrepreneur for own resources
with the best of all alternatives
options for their use. This is about
some income from which
the entrepreneur is forced to refuse,
organizing your business.

The entrepreneur does not receive these incomes,
because he does not sell his
resources and use them for their own needs.
Creating your own business
entrepreneur is forced to give up
salary that he could
get in the case of employment, if not
worked for own enterprise or from
interest on his capital,
which he could get in credit
sphere, if he had not invested these funds in
your business.

Normal Profit - Minimum Volume
income existing in this industry, in this
time and which can keep the entrepreneur in
within his business. Normal profit follows
be regarded as a payment for such a factor
production as an entrepreneurial ability.
The sum of internal and external costs in
aggregate represents the economic
costs. The concept of "economic costs"
is generally accepted, but in practice, when conducting
accounting at the enterprise, are calculated
only external costs, which have one more
name - accounting costs.

Since accounting does not
internal costs are taken into account.
accounting (financial) profit
will be the difference between
gross income (revenue) of the firm and its
external costs, while
economic profit - difference
between the gross income (revenue) of the firm
and its economic costs (the sum
both external and internal costs).

2. Production costs in the short run

The cost of production depends on
the value of the cost of economic resources.
Somewhat conditionally, all resources used in
production can be divided into two major
groups:
resources that can be changed
very quickly (e.g. raw material costs,
materials, energy, hiring work force etc.);
resources, change usage
which is possible only for enough
long period of time (construction
new production facility).

Based on these circumstances, the analysis
costs are usually carried out in two
time intervals:
in the short term (when
the amount of some resource remains
constant, but production volumes
can be changed by using
more or less of these
resources, such as labor, raw materials, materials, etc.)
and in the long run (when
change the amount of any resource,
used in production).

The difference between short term and long term
periods exactly corresponds to the difference between
fixed and variable factors of production.
Variable factors of production - factors
production, the number of which can be changed in
within the short term (for example, the number
employees).
The fixed factors of production are the factors
costs for which are set and cannot be changed in
within the short term (for example,
production capacity). Thus, in
in the short run, the entrepreneur uses both
fixed and variable factors of production.
In the long run, all factors of production
are of a variable nature.

In the short term, there are:
fixed costs (TFC) value
which does not depend on the volume of produced
products (depreciation charges,
bank loan interest, rent
pay, maintenance of the administrative apparatus and
etc.).

fixed factors of production. Value
these costs are not related to production volumes.
Fixed costs exist even when
when production activity on the
the enterprise is suspended, and the volume
output is zero.
The company can avoid these costs
only by completely ceasing their activities;

variable costs (TVC), the value of which
varies with volume change
production (costs of raw materials, materials, fuel,
energy, wages of workers, etc.).
This refers to the cost of resources related to
variable factors of production.
As production expands, variable costs
will increase as the firm needs more
raw materials, materials, workers, etc.
If the firm stops production and
output (Qx) reaches zero, then
variable costs will be reduced to almost zero, while
while fixed costs remain
unchanged.

The difference between permanent and
variable costs is essential for
every businessman: variables
he can manage costs
fixed costs - out of control
administration and must be paid
regardless of the volume of production, even
if production is suspended.

Fig.1. Dynamics of fixed and variable costs

In addition to fixed and variable costs,
in the short term, another type is distinguished
costs - gross (cumulative, total,
general). Gross costs (TC) - amount
fixed and variable costs, calculated
for each given volume of production:
TC = TFC+TVC
Since TFC are equal to some constant
(constant), the dynamics of gross costs will be
depend on the behavior of TVC, i.e. will
determined by the law of diminishing
ultimate performance.

Fig.2. Fixed, variable and gross costs

In addition to gross costs, an entrepreneur is interested in
costs per unit of output, since it is them that he will
compare with the price of the product to get an idea of
profitability of the firm. unit cost
produced products are called average. This group
costs include:
average fixed costs (AFC) - fixed
costs calculated per unit of production:
AFC = TFC/Qx
average variable costs (AVC) - variable
costs per unit of output:
AVC=TVC/Qx
average total (total, gross, general) costs
(ATS) - total costs per unit of output:

Rice. 3. Average cost curves

Rice. 4. Average and marginal costs

3. Marginal cost

For a manufacturer, it is important
the cost of the firm changes with the output
additional unit of production. Define
this can be done using the limit indicator
costs.
Marginal Cost (MC) -
additional costs for
production of each subsequent
(additional) unit of production:
MC = ∆TC/∆Qx

It must be taken into account that the limits
costs largely depend on variables
costs, therefore, on the MC curve (Fig. 4)
two segments: segment with negative and segment with
positive dynamics, which is also explained by
the existence of the law of decreasing limit
returns. The next feature graphic arts
marginal cost (MC) is that it
intersects plots of mean variables and
average total costs at their lowest points (A and
AT).

Cost reduction is one of
the most important sources of
competitiveness of any enterprise. After all
at current market prices for products
cost reduction means additional
profit, and hence prosperity for any
manufacturer. When changed for any
reasons for the level of costs cost schedules
are shifting. In case of cost reduction
the corresponding graphs are shifted down, when
As costs rise, the graphs move up along
y-axis.

4. Law of diminishing returns

According to the law of diminishing returns,
starting from a certain moment
serial connection of units
variable resource (for example, labor) to
immutable (fixed) resource
(to capital or land) gives a diminishing
additional, or marginal, product in
calculation for each subsequent unit
variable resource.

In other words, the growth in output will
become progressively slower as
more workers will be involved in
production. marginal product (MP), and together
with it, marginal revenue (MR) begins to decrease
because the workers hired later turned out to be
less qualified, but because
a relatively larger number are employed at that
the same size as available capital funds.

5. Production costs in the long run. scale effect

The long term is the period
time long enough to
the firm could manage to change the number of all
resources used, and permanent, and
variables, including the size of the enterprise. AT
this period all resources are
variables. Thus, short term
period is a period
fixed capacities, but long-term
period - the period of changing capacities.

The positive effect comes from
when, as the size grows
enterprises there is a decrease in average
costs through:
1) more high level labor specialization
workers and management personnel;
2) the possibility of using more
productive equipment;
3) more complete waste disposal through
production of by-products. All this
contributes to obtaining external or
domestic economies of scale
production.

Negative economies of scale
occurs when, as
business growth
there is an increase in the average cost of
control complexity score
large scale production.
Instead of savings, quite
significant damage or loss.

In the long run, there is
a situation where constant long-term averages
costs cause constant returns to growth
scale of production. With the same
economies of scale, the size of a firm's operations does not
affects the productivity of the factors used.
Average and ultimate performance
the firm's factors of production remain
unchanged for both large and small
enterprises. With the same scale effect
instead of one plant using
specific production technology
you can build two factories producing twice

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Production costs and production costs

Lecture plan:

1. The concept of costs and production costs

2. Classification of production costs

1. The concept of costs and production costs

Economic and production activities at any enterprise are associated with the consumption of raw materials, materials, fuel, energy, with the payment of wages, the deduction of payments for social and pension insurance of employees, the calculation of depreciation, as well as with a number of others. necessary costs. Through the circulation process, these costs are constantly reimbursed from the company's proceeds from the sale of products (works, services), which ensures the continuity of the production process.

Costs are a monetary assessment of the cost of material, labor, financial, natural information and other types of resources for the production and sale of products for a certain period of time .

According to the reproduced sign, the costs of the enterprise are divided into three types:

- the costs of production and sale of products, forming its cost. These are current costs covered from the proceeds from the sale of products through the circulation of working capital;

- the cost of expanding and updating production. As a rule, these are large one-time capital investments for new or modernized products.

- expenses for socio-cultural, housing and other similar needs of the enterprise. They are not directly related to production and are financed from special funds, formed mainly from distributed profits.

Costs are a combination of various types of costs for the production and sale of products; this is the monetary expression of the costs of production factors necessary for the enterprise to carry out its production and commercial activities.

All costs are taken as opportunity costs, which means that the cost of any resource chosen for production is equal to its value at the best option use. This is one of the most important principles of a market economy.

2. Classification of production costs

Opportunity costs fall into two categories:

Explicit (external, accounting)

Implicit (internal)

Explicit costs– direct payments to external (in relation to this enterprise) suppliers of factors of production or opportunity cost, which take the form of cash payments to suppliers of factors of production and intermediate products.

Explicit costs are fully reflected in financial statements enterprises and, in accordance with applicable law, are included in the cost of production and net (accounting) profit. Therefore, explicit costs are called accounting costs.

On the cost price products include the following types of costs:

Material

Labor costs

Rental fee

Deductions for social needs

On the net profit enterprises include:

Financial assistance to employees

Expenses for voluntary medical insurance, financial risk insurance

Interest on overdue loans

Implicit costs- this is the opportunity cost of using resources that belong to the enterprise itself and are its property.

They reflect the use in production of resources belonging to the owners of the company: land, premises, their personal labor, intangible assets, etc., for which the company does not formally pay.

Implicit costs are determined by the cost of internal resources, i.e. resources owned by the firm.

An example of an implicit cost for an entrepreneur would be the salary that he could receive while working for hire. For the owner of capital property (machinery, equipment, buildings, etc.), the previously incurred expenses for its acquisition cannot be attributed to the explicit costs of the current period. However, the owner bears implicit costs, since he could sell this property and deposit the proceeds in the bank at interest, or rent it to a third party and receive income.

Entrepreneurs actually bear these costs, but not explicitly, not in cash, which allows them to be included in economic costs.

From the point of view of the dependence of costs on the volume of production, all economic costs are divided into two large groups - fixed and variable costs.

fixed costs- these are costs that do not depend on the volume of output (costs for the operation of buildings, structures, equipment, administrative and management costs, rent, payment of bank loans, social insurance contributions for managers, payment for security guards, etc.)

variable costs- these are costs that change with changes in the volume of production and sales (costs for the purchase of raw materials, materials, social security contributions for employees, hourly wages, costs for electricity, fuel, etc.)

The sum of fixed and variable costs is the total (gross) costs.

Distinguish:

production costs are the costs directly associated with the production of goods or services
distribution costs - the costs associated with the sale of manufactured products.

Along with the concept of "costs", the indicator of the cost of production is used as an identical indicator.

Cost price products (works, services) is a valuation of natural resources, raw materials, materials, fuel, energy, fixed assets used in the production process (works, services), labor resources, as well as other costs for its production and sale.

The cost price reflects the amount of current costs that are of a production, non-capital nature, ensuring the process of simple reproduction at the enterprise.

In a market economy, the cost of production is the most important indicator production and economic activities of the enterprise.

In Russia, until 2002, there was a basic list of costs included in the cost of production, determined by federal law.

Based on the Tax Code of the Russian Federation and the Regulations on accounting ministries, departments, intersectoral state associations, concerns and other organizations develop sectoral regulations on the composition of costs and guidelines on planning, accounting and costing of products (works, services) for subordinate enterprises (firms).

In terms of the amount of costs taken into account (depending on the place of occurrence), the types of prime cost are:

shop cost- includes the costs of manufacturing products within the workshop - basic materials, taking into account the return of waste, depreciation of workshop equipment, wage main production workers of the shop, social contributions, expenses for the maintenance and operation of shop equipment, general shop expenses
production cost(finished product cost) - represents the sum of the workshop cost and general factory expenses (administrative, managerial and general business costs and auxiliary production costs)
total cost(cost of sold, shipped products) - combines the production cost and the costs of its implementation (non-manufacturing costs).

Depending on the goals (accounting, planning, analysis), there are:

planned cost- these are the maximum allowable costs that, at a given level of technology and organization of production, are necessary for the enterprise. It is determined at the beginning of the planning period based on the planned norms for the use of the active part of the main production assets, labor costs, material and energy resources and other planned indicators for this period.

estimated and project cost- used in feasibility studies of projects for the implementation of scientific and technological progress, in assessing the effectiveness of measures for the reconstruction and technical re-equipment of an enterprise, pricing, etc.
actual cost- reflects the degree of implementation of planned targets for cost reduction based on a comparison of planned costs with actual ones. It is determined at the end of the reporting period on the basis of accounting data.

Actual costs may deviate from planned costs. Savings will be created in the case of improved use of fixed production assets, labor and material resources. The excess of the actual cost over the planned one can be observed in the initial period of development new products or when the performance of the enterprise deteriorates.

In addition, the cost of gross, marketable or sold products, the cost of comparable products, the cost of a unit of production are also calculated.

Under the cost structure understand the proportion of individual cost items to the total cost.

Their structure is formed under the influence of various factors: the nature of manufactured products and consumed material and raw materials, the technical level of production, the forms of its organization, location, etc.

The costs associated with the production and sale are divided into:

material costs;
labor costs;
deductions for social needs;
the amount of accrued depreciation;
other expenses.

Material costs - the largest element of production costs, the share of which in the total cost can be 60-90%.

Material costs include fuel and energy spent on technological goals and household needs, purchased components and semi-finished products, the cost of containers and packaging, spare parts, deductions, taxes and fees associated with the use of natural raw materials.

Labor costs include wages of the main production staff, as well as non-staff employees related to the main activity.

Compensation includes wages calculated at rates, tariff rates, official salaries in accordance with the systems of remuneration adopted at the enterprise; the cost of products issued as payment in kind, allowances and surcharges; bonuses for production results, payment for regular and additional vacations; the cost of free services; one-time seniority awards.

Deductions for social needs - mandatory contributions in accordance with the norms established by the legislation of state social insurance to the Social Insurance Fund of the Russian Federation, Pension Fund of the Russian Federation, compulsory medical insurance funds against labor costs of employees included in the cost of products (works, services), under the element "Costs of labor" (except for those types of wages for which insurance premiums are not charged).

Depreciation of fixed assets for their full recovery is included in the cost of production in amounts determined on the basis of the balance sheet value of funds and depreciation rates.

Part other expenses includes: taxes and fees, deductions to special funds, payment of interest on a loan, travel expenses, etc.

Grouping costs by economic elements reflected in the cost estimate for the production and sale of products (works, services). This grouping of costs is important for the enterprise.

The estimated cost allows you to determine the total amount of various types of resources consumed by the enterprise. On the basis of the estimate, the sections of the production and financial plan of the enterprise are linked: for material and technical supply, for labor, the need for working capital etc. According to the cost estimate, the cost of commercial products is calculated.

However, on the basis of the elements of the estimate, it is impossible to determine the cost of a unit of output in the amount of the entire range, as well as each item, group, type. These tasks are solved by the classification of costs according to costing items.

Systematic cost reduction is the main means of increasing the profitability of the company.

There are the following main directions for reducing production costs in all spheres of the national economy:

the use of the achievements of scientific and technical progress, on the one hand, in a more complete use of production capacities, raw materials and materials, including fuel and energy resources, and on the other hand, the creation of new efficient machines, equipment, and new technological processes.

improvement of the organization of production and labor - this process, along with cost savings by reducing losses in almost all cases, provides an increase in labor productivity, i.e. savings in labor costs.
state regulation economic processes through government programs in the field of scientific and technical progress and state standards.

1. Intra-production reserves to reduce the cost of production.

An increase in production volume at a constant cost of material and labor resources can only be achieved as a result of cost reduction. The development of a plan of organizational and technical measures for the use of intra-production reserves is based on the results of an analysis of their sources and factors. The most important sources are the reduction of material costs and the growth of labor productivity.

2. Technical and economic factors for reducing the cost of production

Raising the technical level is the process of changing the technical base, the growth of which is achieved as a result of:

improvement of means of labor (introduction of progressive technology, increase in the share of modern equipment), objects of labor (introduction of progressive types of raw materials, materials, energy carriers);
improving the use of raw materials, materials;
introduction of progressive technology, mechanization and automation of production processes.

The introduction of more productive equipment provides savings in wages (live labor) while increasing depreciation (past labor).

Improving the organization of production and labor affects the cost reduction as a result of the specialization of production, improving the organization of labor, improving the organization of production management, improving logistics and sales, better use of the time of machine operators, and reducing unnecessary costs.

A change in production volumes affects semi-fixed costs, which, per unit of output, decrease as the volume of production increases (for example, a decrease in depreciation charges per unit of output with an increase in production volume).

Cost reduction from technical and economic factors is based on the reduction of current production costs per unit of output before and after the implementation of the plan of organizational and technical measures.

Thanks to

Accounting costs - the value of the spent resources in the actual prices of their acquisition Economic costs - as the value of other benefits that could be obtained with the most profitable of all possible alternative directions for using the same resources

Accounting profit is the difference between a firm's gross income (revenue) and its explicit costs. This profit is indicated in the financial documents of the company. Economic profit is the difference between a firm's gross income and economic costs. This is income received in excess of normal profit, shows the entrepreneur's interest in this direction of the company's activity. 1. Cost concept

Calculation of accounting and economic profit (thousand rubles) Accounting calculation Economic calculation 1. Revenue 2. Explicit costs Including: a) raw materials and materials b) fuel and energy c) salary interest rate Implicit costs Including: a) the opportunity value of the entrepreneur's time b) the opportunity value equity(2000) at an annual interest rate Accounting profit (1-2) 5. Economic (net) profit (1-2-3)

1. The concept of costs According to the economic role in the production process, costs can be divided into: Basic - costs associated directly with technological process, as well as with the maintenance and operation of tools. Overhead - maintenance and management costs production process, sale of finished products.

1. The concept of costs According to the method of allocating costs for the production of a particular product, there are: Direct - these are the costs associated with the manufacture of only this type of product and are directly attributable to the cost of this type of product. Indirect costs in the presence of several types of products cannot be attributed directly to any of them and are subject to distribution indirectly.

A short-term period is considered to be a period of time when an enterprise cannot change its production capacities, but can change the degree of intensity of loading these capacities. The long-term period is a period sufficient to change the volume of all resources employed in production, including production capacities.

Fixed costs (fixed cost - FC) - costs that do not depend on the volume of output. Variable cost (VC) - costs that change with the volume of production. Gross total cost of production (total cost - TC) is equal to the sum of fixed and variable costs: TC = FC + VC. 2. Fixed and variable costs

Average costs (AC - average cost) are calculated by dividing the costs by the volume of products produced (Q - quantity) Thus, you can calculate the average constants (AFC - average fixed cost), average variables (AVC - average variable cost) and average total (ATC - average total cost) costs:,.

Marginal cost and marginal productivity. The shape of the MC curve is a reflection and consequence of the law of diminishing returns. Marginal cost falls as the productivity of each unit of a variable resource increases, and rises as the productivity of each additional unit of a resource decreases. 3. Medium and marginal cost

Relationship between average and marginal costs. The marginal and average cost functions are closely related. The MC curve (Fig. 4) intersects the AVC and AC curves at the points of their minimum values (points A and B). 3. Average and marginal costs 4. Marginal and average costs

Average costs (ATS) of a boiler house for one apartment in a 100-apartment building: One house - TC = rubles, ATC 1 = 500 rubles; Two houses - TS \u003d rub., ATS 2 \u003d 300 rubles. Three houses - TS \u003d rub., ATS 2 \u003d 220 rubles. Connecting these houses requires an increase in costs, but the number of apartments is growing to a greater extent; Six houses TS \u003d rub., ATS 3 \u003d 240 rubles. For this house, the increase in costs is faster than the increase in the number of apartments.

Positive economies of scale: as the size of the enterprise increases, average costs decrease. The positive effect of scale is due to: - the growth of the size of the enterprise increases the possibility of using specialists in production and management; – large enterprises can use highly productive and expensive equipment; - large enterprise can develop side and auxiliary industries, produce products from the waste of the main production. 4. Scale effect

Negative economies of scale: as the size of the enterprise increases, average costs increase. Negative economies of scale arise: - with a decrease in the effectiveness of interaction between the company's divisions; - due to a decrease in the quality of control over the implementation of decisions of the company's management; -due to a sharp increase in the cost of transmitting and processing information; - due to possible differences in the interests of the company's divisions and the overall development strategy of the company. 4. Scale effect

Positive and negative economies of scale are factors that determine the structure of each industry. Industries where long-term AC reach a minimum with a very large output (LAS 1) - a natural monopoly industry. In industries where economies of scale are small and negative ones arise quickly, the effective size of the enterprise is determined by the small volume of production (LAC 2) - industries perfect competition. 4. Scale effect

Industries in which the positive effects of scale are exhausted fairly quickly, and the negative one does not come into effect until a significant scale of production is achieved (LAC 3) can include both small and large firms- industries of imperfect competition. in year. The cost of raw materials and materials is 40 million rubles. The salary of employees is 30 million rubles. The salary of the company's managers (director, chief accountant and chief economist) is 60 thousand rubles. each month. Normal profit - 12 million rubles. Find the accounting and net income of the firm. The bonus for each manager at the end of the year is 10% of net profit.

Questions and tasks for self-control 2. Let's say the company produced 50 units of products to order at a price of 2800 rubles, and 20 units of products for a store at a price of 3250 rubles. Draw a graph of the firm's total income. How will the slope angle of TR be determined? An urgent order was received for 20 units at a price of 2700 rubles, equal to the cost of production. Is this order profitable if the store rent costs 7,000 rubles, and we can sublease it for 4,000 rubles?

3. If AVC decreases as output increases, then: a) MC must decrease; b) FC must be reduced; c) TS should be reduced; d) ATC must be lower than AVC; e) MC must be lower than AVC. 4. Which of the following expressions represents the total costs: a) ; b) VC - FC; c) FC + VC; d) AFC + AVC; e). Questions and tasks for self-control

Economy

Permanent and variable costs irreversible costs. The main sources of business financing. Shares, bonds and other securities. Banking system. financial institutions. Types, causes and consequences of inflation.

Rukavishnikova M.V., teacher of history and social studies. Social science grade 10 a basic level of

Fixed and variable costs.

Production costs and economic costs.

Internal and external.

Constants and variables.

The concept of profit.

Economic profit.

accounting profit.

Features of calculating the value of costs and profits.

accounting method.

economic method.

production costs- this is the cost of the producer (owner of the firm) for the acquisition and use of factors of production.

economic costs are the payments that the firm must make to suppliers necessary resources(labor, material, energy, etc.) in order to divert these resources from use in other industries.

economic costs

Internal (implicit)

Permanent

Variables

Internal (or implicit)- the cost of one's own resource - is equal to the cash payments that could be received for an independently used resource if its owner invested it in someone else's business - unpaid expenses for the use of one's own resources. The resources belong to the company and are used for its own needs. Have the form of "lost income" (for example: office and warehouse space) – rent (alternative use) would give a profit in monetary terms.

External (explicit, accounting)– payments to suppliers of labor resources, raw materials, fuel, services, etc. - The amount of cash payments that the firm makes to pay for the necessary resources ( wages, purchase of raw materials, transportation costs) are calculated on the basis of financial statements-accounting.

fixed costs- that part of the total cost that does not depend on this moment time from the volume of output ( the rent of the company for the premises, the cost of maintaining the building, the cost of training and retraining of personnel, the wages of management personnel, the cost of utilities, depreciation ). Occur when production has not yet begun, because. there must be a building, cars, etc. They are financed even when the enterprise stops.

variable costs- that part of the total costs, the value of which for a given period of time is directly dependent on the volume of production and sales of products ( purchase of raw materials, remuneration for labor, energy, fuel, transport services, costs for containers and packaging, etc. . ). if the products are not produced, they are equal to zero.

Profit

economic profit is the difference between the firm's total revenue and economic costs.

Economic profit directs the entrepreneur not just to earn income, but to compare this income with that which could be obtained as a result of an alternative use of available resources.

Accounting profit is the difference between total revenue and accounting costs.

Different understanding of the company's profit by economists and accountants leads to different conclusions about the state of affairs in the enterprise.

To calculate the actual value of costs and profits, the accounting method should be used. For making decisions on the choice of one of the alternative options for investing resources, only the economic method of calculating costs is acceptable.

Money- this is a special product that performs the role of a universal equivalent in the exchange of goods. It expresses the value of all goods and acts as an intermediary in their exchange.

The main functions of money (essence of money):

the measure of value- express the price - the monetary form of the value of the goods;
medium of exchange- act as a fleeting intermediary in the acts of sale of goods;
store of value- withdrawn from circulation money is used as a store of value ( gold, securities, real estate, currency, etc.)
instrument of payment– are used to pay off various liabilities ( wages, taxes, etc.)
world money - used for settlements in the world market ( gold, dollar, euro, pound sterling, yen, ruble) as a universal means of payment and purchase, and also as a universal materialization of wealth.

Cash(paper money and small change) - a form of making cash payments and settlements, in which banknotes are physically transferred from the buyer to the seller when paying for goods or when making other payments.

Non-cash funds(credit money, check, bill of exchange, banknotes, electronic money) - a form of cash payments and settlements in which the physical transfer of banknotes does not occur, but records are made in special documents

credit money- these are debt obligations, the appearance of which is associated with the development of credit relations;
check- a written order of a person who has a current account on the payment by the bank of a sum of money or its transfer to another account;
bill of exchange- a written promissory note, which indicates the amount of money and the timing of its payment by the debtor; It is in circulation as money.
banknotes- Bank notes - bank notes issued into circulation by central issuing banks. They differ from paper money in that: they have double security - credit (commercial bill) and metal (gold reserves of the bank); are issued not by the state, but by the central issuing bank; function as a means of payment.
electronic money is a system of non-cash payments made through the use of electronic technology, covering banks, enterprises retail, household services, etc. Smart cards have appeared, which are an electronic checkbook

The financial market consists of a number of sectors

Credit market. This is an economic space where relations are organized due to the movement of free money between borrowers and lenders on the terms of repayment and payment ( Central commercial bank, commercial banks, banks and individuals and legal entities, Russian and foreign banks).
Currency market. The system of economic relations between banks, as well as between banks and their clients regarding the purchase and sale of foreign currency.
Market valuable papers(stock market). A market where the issue (release) and purchase and sale of securities, shares, bonds and derivatives of them is carried out.
Market of insurance and pension products. This is a special system of organization of insurance relations, in which the purchase and sale of insurance services as a commodity takes place, the supply and demand for them is formed. The insurer and the policyholder regulate insurance economic relations by a special agreement - a policy.
Investment market (investment market). This is a set of economic relations that develop between sellers and buyers of investment goods and services. The goods are the objects of investment activity ( real estate, new construction, art values, precious metals and products, deposits, government obligations).

Stock Exchange is an organized market in which transactions with securities and other financial instruments are carried out and whose activities are controlled by the state.

Stock exchange functions

Mobilization of funds for long-term investments in the economy and financing of government programs.
Purchase and sale of shares, bonds joint-stock companies, government bonds and other securities.
Establishment in the course of trading of the rate of securities circulating on the stock exchange.
Dissemination of information about securities quotes and the state of the financial market as a whole.

Bank(it. bench) is financial institution, which concentrated temporarily free funds of enterprises and citizens for the purpose of their subsequent provision in debt or on credit for a certain fee.

Bank functions

acceptance and storage of deposits (money or securities deposited in the bank) of depositors;
issuance of funds from accounts and settlements between clients;
placement of collected funds by issuing loans or providing credits;
purchase and sale of securities, currency;
regulation of money circulation in the country, including the issuance (issue) of new money (a function only of the Central Bank).

Central State Bank- pursues the state policy in the field of issue, credit, money circulation. The main credit organization of the country is owned by the Russian Federation. Operates on the basis of the law of the Russian Federation.

Commercial banks- carry out financial and credit operations on a commercial basis.

According to the form of ownership, they are divided into state, municipal, private, joint-stock, mixed.
On a territorial basis, they are divided into local, regional, national and international.

Functions of the Central Bank

Emission center of the country (only it has the right to issue money, banknotes into circulation).
Regulates the economy through monetary policy.
It concentrates the minimum reserves of commercial banks, which gives it the opportunity to control their activities.
He is the banker of the government (he gives all profits in excess of certain norms to the treasury and is an intermediary in all payments, therefore he occupies a leading position in the country's banking system).

The main instruments of the state's monetary policy

Operations on open market (government loan)
Discount rate policy
Change in the required reserve ratio

Internal. External.
Internal.
External.

Internal sources of financing.

Firm profit. Depreciation.
Firm profit.
Depreciation.

Bank loan. Transformation of a sole proprietorship into a partnership. Transformation of the partnership into a joint stock company. Use of funds from various funds to support small businesses.
Bank loan.
Transformation of a sole proprietorship into a partnership.
Transformation of the partnership into a joint stock company.
Use of funds from various funds to support small businesses.

All sources of financing in business can be divided into internal and external.

– sources available to the firm. This is the company's profit + depreciation.
External - Bank loans + funds from various financial institutions and investment companies, pension funds + state and regional funds to support small businesses.

Domestic funding sources

Profit is the firm's main source of finance.

Firm profit is the difference between income and its costs or the cost of the product.

The amount of profit depends

From commodity prices .
From unit costs .
From the volume of sales of products .

Gross or total profit- the difference between income and product cost. Part of it goes to pay taxes, perhaps it will be paid to the bank in the form of interest.

Residual or net profit - the amount remaining after deducting the transferred payments from the gross profit.

Depreciation (from lat. amortisatio - repayment) -1) the depreciation of fixed assets calculated in monetary terms in the process of their application, production use.

2) It is at the same time a means, a method of transferring the value of worn-out instruments of labor to the product produced with their help.

3) the institution of compensation for depreciation of fixed assets is depreciation deductions in the form of money allocated for the repair or construction, production of new fixed assets.

Sinking fund- funds intended for the reproduction, reconstruction of worn-out fixed assets. The amount of ready depreciation deductions of an enterprise, organization is determined as a share of the initial cost of objects representing fixed assets. Standard value This percentage is called the depreciation rate.

External funding sources

Other firms.
Sale of shares
Banks
Credit
Trade(or commodity) credit

State

The state allocates funds to public sector enterprises in the form of direct capital investment .
The state can also provide firms with its funds in the form of subsidies .
Main difference public funding from a bank loan that the company receives funds from the state free of charge and irrevocably. This means that the firm does not have to return the amount received from the state, and does not have to pay interest on it.
Government order .