What is material-technical base
In the language of economists, material-technical base of the enterprise is element of the productive forces on the basis of which between the subjects of the production process to fold the relations of production. In fact, it is the complex of the means of production, material and physical elements required to support the activities of the enterprise.
The logistical base has a natural and cost structure. That part of it which has a natural expression, depending on the activity, may include tools and objects of labor: tools, machinery and equipment, production buildings and auxiliary buildings, perennial plantations, raw materials, building materials, seed stock, working and productive cattle, feed, etc., Value may vary depending on the degree of wear and tear. The elements of logistics are arranged with regard to their use in a particular technological process.
The concept of the material-technical base takes into account not only the presence and composition of components and their condition: specifications and suitability of premises, age of machinery, tools and equipment, according to available material resources to the production cycle used at the plant.
The composition of the material-technical base
As has been said, it depends on the type of activity of the enterprise. For example, for companies engaged in the hotel business, the composition of the material and technical base includes:
all existing buildings and construction of administrative, industrial, economic, technical and auxiliary facilities;
- engineering, including Sewerage, water supply, ventilation and air conditioning; lifts and hoists; radio and TV systems telephone and alarm systems, fire fighting;
- infrastructure of the hotel industry located in its territory: sidewalks, driveways, flower beds, perennial plantings, playgrounds for children, as well as swimming pools, fountains, piers, etc.
If the company is engaged in agricultural production, its material and technical base will consist of logistical resources and equipment, machines and mechanisms. To material resources may include: feed, seed, animal fattening, fuel and lubricants, etc.
Advice 2: What constitutes a business enterprise?
Each company originally created for a specific purpose, usually, is making a profit, creating jobs, development of any sphere of activity. In the process of implementation is constantly occurring events and actions that somehow relate to the production. The combination of these processes is called economic activity of the enterprise.
The concept of economic activity
Economic activity is any activity of the enterprise that is associated with the sale of goods, services and profit maximization.
Economic activity involves a complex economic processes, such as:
1. The use of the means of production. Under the means of production refers to fixed assets, depreciation, miscellaneous equipment, that is, objects that are directly involved in the process of making a profit.
2. Using objects of labor. The items include materials. Their consumption should be economical and regulated, then it will positively affect the financial result.
3. The use of labor resources; work resources are: availability of skilled labor, optimal use of working time and payroll.
4. The production and marketing of products; Here we consider the indicators of production quality, deadlines, volume of shipment, cost of the products.
5. Indicators of cost of production. Are taken into account all costs incurred in the production and sale of products.
6. The profitability indicators. Qualitative indicators of the outcome of the enterprise.
7. The financial condition of the company.
8. Other business processes.
All of these indicators are included in the concept of business enterprises and are in constant close connection and dependence, therefore, require periodic analysis and accounting.
Fixing the facts of economic activities
Most enterprises carry out their functions with the purpose of earning income. For smooth operation of all departments within a company require constant monitoring. It is necessary to conduct continuous work with documents which reflect data on all business transactions.
It is important to analyze the economic activity of the enterprise for constant monitoring on these processes. Economic activity is reflected in accounting registers and vaults:
- analysis of accounts;
- trial balance;
The main report of any company is the balance sheet. According to this document, a knowledgeable person can immediately perform the economic condition of the firm. None of the transactions made in the ordinary course of business does not pass by itself, all actions are recorded in registers and are included in the reporting, analysis and forecasting.
Advice 3: Depreciation of fixed assets of the enterprise: concept and types
Under the asset companies understand, first of all, the facilities and equipment used for production. Fixed assets should be replaced as they wear and tear.
The concept of depreciation of fixed assets of the enterprise
Fixed assets include tangible resources of the enterprise, which are not consumed in one production cycle. Fixed assets the company used the years and gradually wear down, which is understood as the gradual loss of their values.
Depreciation of fixed assets is the decrease in their cost. This is due to the gradual destruction of equipment in the production process or of obsolescence. Depreciation of fixed assets accounting reflects, together with the depreciation each month.
The types of depreciation of fixed assets
There are two types of depreciation of fixed assets – physical and moral. Physical deterioration represents the loss of equipment and facilities consumer qualities. There are physical wear of the first and second kind. In the first case the wear of the means of production is the result of their operation. The degree of such wear depends on the intensity of use of capital resources and increases output growth.
Physical depreciation of fixed assets of the second kind is the destruction of idle means of production under the influence of climate or due to incorrect operation and poor maintenance. If the first kind of physical wear is economically justified and unavoidable, the second type is an example of inefficient use of resources.
The decrease in the value of fixed assets need not be associated with the loss of their consumer qualities. In this case, it uses the concept of obsolescence. There are two forms. The increase in the efficiency of production of capital goods is the reason for obsolescence of fixed assets of the first kind. It is caused by the appearance of cheaper tools. Moral deterioration of the second kind arises from the improvement of the means of production, which become more efficient and reliable. For this reason, the value of the old equipment is reduced.
Both forms of obsolescence assets arise as a consequence of technical progress. From the point of view of Economics, they are quite justified, since outdated means of production are replaced by more perfect. However, enterprise-specific moral deterioration of assets means a significant increase in the costs of production.