The gross output of material branch of a national economy is meant as the cumulative product of this branch created for a certain period of time. When determining gross output of agriculture and other branches of production of goods it is necessary to limit, first of all, accurately production of each branch and to specify the maintenance of a cumulative product of branches in the conditions of their comprehensive internal and external interrelations. All branches in the course of production are connected with each other: the product of one production or one branch during the period which the volume of a cumulative product undertakes, is consumed as raw materials in other branch of this enterprise, or other enterprises, i.e. makes a certain revolution.
Full, or commercial, prime cost is counted as the sum of costs of production and product sales. Commercial product cost per 1 c is higher than production prime cost on the size of the expenses connected with realization.
The agricultural production realized out of limits of economy is called as products. The part of the production consumed in this economy or realized out of its limits can be exposed to industrial processing previously. Distribution of physical volume of agricultural production can be presented in terms of money on condition of uniform prices for all channels of realization. Distribution of production at cost (to costs of productions assumes the accounting of actually developing prices.
In the developed market economy of firm are diverse. They are engaged in production of goods, their realization, rendering the most various services: financial, intermediary, information, advisory, research.
Costs of production and product sales are called as costs of production. From the economic point of view of costs represent the cost of all spent materials and services. The main motive of activity of any firm in market conditions – maximizing profit. Real opportunities of realization of this strategic objective in all cases are limited to costs of production and demand for production released by firm. In concrete cases (a place gain in the market, competitive fight, etc.) the firm can go for temporary decrease in profit, and even losses. But the long time firm cannot exist without profit because she will not stand in competitive fight. As costs is the main limiter of profit and at the same time main factor influencing the offer volume, decision-making by the management of firm it is impossible without analysis of already available costs of production and their size on prospect.
The gross output of agriculture is estimated on a method of a gross turn, that is as the sum of crude products of plant growing and animal husbandry. Production which did not undergo processing in other branches, for example grain, sugar beet, sunflower seeds, crude vegetables, fruits, milk belongs to crude primary production of agriculture.
In modern economic science it is accepted to understand any activities of members of society for use of natural resources as production. Natural resources join also resources of the person. The purpose of a production activity is creation necessary for the certain member of society and society in general of the material and non-material benefits.
A number of dynamics which levels characterize a condition of the phenomenon on certain timepoints is called moment. Important economic value has definition of a difference of levels of a moment number of dynamics which characterizes development (increase or reduction of the studied phenomenon in time.
Finance of the enterprises (organizations) - economic entities represents the financial relations expressed in a monetary form, arising at education, distribution and use of monetary funds and accumulation in process of production and realization of goods, performance of work and rendering various services.
– overhead costs (expenses which cannot count on one product the direct account therefore join in prime cost an indirect way – in proportion to a salary of production workers – utilities, advertizing, transport, a salary the operating structure, etc.).