Costs and income of enterprises - Курсовая работа

Any company or organization, regardless of ownership (private or public) in the implementation of its activities receives some income. Any enterprise has to have a system of accounting, managing and planning of costs and resources to finance its activities. This index is needed for defining the profit from production and economic operations including such sources of profit as receiving interest and dividends, operations with foreign currency etc. e) profit from ordinary economic operations - sum of profits from main economic operations and profit from financial activity; The rights and opportunities of allocation and using of the income are very important for any enterprise because income is the main source of financial, production and social development, financial development of its employees. Costs for use of own land is called rent, or internal rent, the costs of using entrepreneurial skills of company owner are called the normal profit, costs for use of company-owned industrial buildings, equipment and other items of real capital is called interest.Resources of income for enterprises are: net income from selling of products (providing services), profit from financial and ordinary economic activities, extraordinary profit. The rights and opportunities of allocation and using the income are very important for any enterprise because income is the main source of financial, production and social development, financial development of its employees. The income should be allocated between owners, investors of the enterprise and government (as taxes). Common to all businesses regardless of ownership and types of activity is the distribution of profits in accordance with the statute and the collective agreement for the following purposes: payments to the budget, contributions to the non-budgetary funds, the formation of the accumulation fund, establishment of a fund of consumption, charitable purposes, other purposes (saving for the purchase of property, etc.). Another way is creation of the system of effective control over costs, which is consisted of cost accounting, staff’s support of cost accounting system, analysis of the causes of costs in the company.

Plan

Introduction

1 Economic essence of costs and income of enterprises

Resources of income for enterprises

Income allocation

Types of costs

2 Main ways of decreasing the costs Main ways of increasing the income

Conclusion

The list of used literature

Resources of income for enterprises are: net income from selling of products (providing services), profit from financial and ordinary economic activities, extraordinary profit.

The rights and opportunities of allocation and using the income are very important for any enterprise because income is the main source of financial, production and social development, financial development of its employees. The order for income allocation and utilization for commercial enterprise are defined by the methodology of income that is accepted in particular society at this stage of its development. Current order of income allocation corresponds to current stage of market relations development. The income should be allocated between owners, investors of the enterprise and government (as taxes). Common to all businesses regardless of ownership and types of activity is the distribution of profits in accordance with the statute and the collective agreement for the following purposes: payments to the budget, contributions to the non-budgetary funds, the formation of the accumulation fund, establishment of a fund of consumption, charitable purposes, other purposes (saving for the purchase of property, etc.).

There are several types of costs: explicit costs, implicit costs, fixed, variable and semi-variable costs.

One of the ways to decrease the costs is reducing the costs of production by the use of scientific and technological progress;

improving the organization of production on the basis of productivity increase through reduction of working time wastes; state regulation of economic processes. Another way is creation of the system of effective control over costs, which is consisted of cost accounting, staff’s support of cost accounting system, analysis of the causes of costs in the company. There are also some tips to reduce costs like categorization of expenses by clearly defined categories, focusing on the most significant costs, planning and implementation of cost reduction. Besides ways and tips for reducing the costs one can use special approaches to do it: 1. Know the measure, 2. New or old partners, 3. Horizontal integration, 4. Vertical integration, 5. To buy or produce, 6. Rent or own, 7. Forms of payment, 8. Tighter control, 9. Optimization of technological processes.

To increase the income one can use the general rule of profit maximization: The firm will increase output until the moment when additional costs of producing an additional unit of output equals the marginal revenue from its sale. This is called the rule MC = MR.

More general ways are focusing on the factors affecting the profitability of the company; evaluation of financial statements; the financial records must be updated; making a list of strengths and weaknesses of the company by examining every aspect of its activities and a list of major longterm assets and their relevance and importance to the company; company’s management should examine turnover and sales channels.

List of used literature

1. .ru. (2002, November 12). Максимизация прибыли в условиях совершенной конкуренции. Retrieved October 12, 2009, from

2. Bestreferat.ru. (2005, August 20). Доходы предприятия. Retrieved October 10, 2009, from

3. Business Ideas. Typical Contract. (no date). Расходы предприятия. Классификация расходов. Retrieved October 11, 2009, from http://www.tvoydohod.ru/fin_11.php

4. Damotvet.ru. (no date). Малый бизнес: улучшение показателей прибыли на основе изучения и планирования бизнеса. Retrieved October 14, 2009, from

5. Vuzlib, the legal and economical library. (no date). Стратегия по снижению расходов. Retrieved October 16, 2009, from http://vuzlib.net/beta3/html/1/5575/5639/

6. XSERVER.ru, the on line library. (no date). Распределение и использование прибыли предприятия. Retrieved October 14, 2009, from http://www.xserver.ru/user/pkpri/5.shtml

7. Zubolom.ru. (no date). Минимизация издержек. Основные пути снижения расходов. Retrieved October 15, 2009, from http://zubolom.ru/lectures/economy/28.shtml