Features of economic costs of trading enterprise: Theory and practice

Abstract

© Serials Publications Pvt. Ltd. Under the conditions of commodity-money relations and economic isolation of the enterprise, there are inevitable differences between public expenses and production expenses of the company. Public production expenses are a combination of live and embodied labor which finds expression in the cost of production. Expenses of the enterprise consist of the sum of all expenses of the enterprise for production and its sale. These expenses, expressed in monetary terms, are called costs and are part of the product value. The largest share of the expenses for industrial production consists of raw materials and basic materials, followed by salaries and depreciation. Getting the maximum effect with the least costs, saving manpower, material and financial resources depend on how the company solves the problems of reducing the cost of production. The process of improving the organization of production and labor, in addition to cost saving by reducing the losses, more often than not provides for increased productivity of labor, i.e. saving the cost of human labor. At the current stage of economic development, the economy of human labor in comparison with the economy of social labor gives more significant results, as evidenced by the study of economic growth through the use of a production function.