Ultimate Guide To Write A Process Paragraph

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The curve of the general constant costs (TFC) represents the line parallel to an axis x. Curves of gross and joint costs have the general focus, with only that that the curve of variable expenses changes more abruptly, and a curve of gross costs — more hollow. On the lower schedule the curve of average constant costs is presented by the falling line, in the beginning with an abrupt bias, and then with more and more. Schedules of averages of the general and average variable costs are in many respects similar in the outlines, but the general expenses decrease quicker in the beginning, and variables, on the contrary, increase more abruptly.

Distinguish costs economic and accounting. costs are understood as all types of payments of firm to for the used resources. They consist of two types: external (obvious, or monetary) and internal (implicit, or implicit).

Expenses, costs, prime cost, are the major economic categories. Their level in many respects determines the size of profit and profitability of the enterprise, efficiency of its economic activity. Decrease and optimization of expenses are one of the main directions of improvement of economic activity of each enterprise.

Labor productivity and costs for production in inversely proportional dependence: while limit productivity grows, limit costs fall; the of limit development conducts to growth of costs.

The second group of factors includes: production specialization development; improvement of the organization, service and production management, reduction of costs of management; improvement of the organization of work, logistics, use of fixed assets, material resources; reduction of transportation costs; elimination of excessive expenses and losses and other factors increasing the level of the organization.

Essence of costs of production and costs of production are not identical among themselves in theoretical and practical plans, both at the level of a social production, and in microeconomics in domestic and foreign practice. From positions of society of costs on production include the full volume of expenses of the live and substantiated work and product costs are equal. Costs of production of the domestic enterprises consist of their own expenses, and costs of foreign firms include standard profit.

Numerical example. The appendix 1 represents more evident numerical illustration of a of the decreasing return. In a column 2 the total of production which can be a as a result of a combination of each quantity of a manpower taken from a column 1 with funds which size by the invariable is shown. In a column 3 (limit productivity) the change of output connected with each investment of work is shown. Turn that in the absence of labor expenses the output is equal to zero; the enterprise without people will not be able to give production. Appearance of the first two workers is followed by the growing return, a their limit products make 5 and 7,5 units respectively. But then, since ­ the worker, a limit product — the gain of all-its output — consistently so for the eighth worker it is reduced to ­, and for the ninth gets a negative. Average productivity, or output counting on one worker (the work called also by productivity, It is shown in a column it is calculated by division of output (a column on number of workers (a column.

Product cost reflects the level of use of the consumed production factors which in turn is defined technical and organizational (equipment and technology, the organization of production, work and management), social and natural factors (conditions), or as it is accepted to call them in total, technical and economic factors.

The graphic representation of dynamics of these costs consists of two levels: the top schedule reflects the movement of curve joint costs, and lower — averages and limit sizes. On an axis x the total amount of production, on an axis at on the top — gross costs, on the lower schedule — averages is postponed.

Treat the third group: decrease in expenses as a result of growth of output due to reduction of constant costs (a positive effect of scale of productions; change of structure (nomenclatures and product range; improvement of quality of production; production placement change.