What Is Included In The Concept Of An Enterprise's Economic Activity?

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What Is Included In The Concept Of An Enterprise's Economic Activity?
What Is Included In The Concept Of An Enterprise's Economic Activity?

Video: What Is Included In The Concept Of An Enterprise's Economic Activity?

Video: What is Economic Activity? 2022, December
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Each enterprise is initially created with a specific purpose, as a rule, it is making a profit, creating jobs, developing a certain field of activity. In the process of carrying out work, events and actions constantly occur that, in one way or another, relate to production. The combination of these processes is called the economic activity of the enterprise.

What is included in the concept of an enterprise's economic activity?
What is included in the concept of an enterprise's economic activity?

The concept of economic activity

Economic activity is any activity of an enterprise that is associated with the sale of goods, services and with obtaining maximum profit.

Economic activity includes a whole range of economic processes, such as:

1. Use of means of production. The means of production mean fixed assets, depreciation, various equipment, that is, objects that are directly involved in the process of making a profit.

2. Use of objects of labor. The objects of labor include materials. Their consumption should be economical and regulated, then this will have a positive effect on the financial bottom line.

3. Use of labor resources; Labor resources include: the availability of a qualified workforce, the optimal use of working time and the wage bill.

4. Production and marketing of products; It examines the indicators of product quality, terms of implementation, shipment volumes, product cost.

5. Indicators of production costs. All costs incurred in the production and sale of products are taken into account.

6. Indicators of profit and profitability. Qualitative indicators of the results of the enterprise's work.

7. The financial condition of the enterprise.

8. Other business processes.

All of the above indicators are included in the concept of the economic activity of the enterprise and are in constant close connection and dependence, therefore, require periodic analysis and accounting.

Fixing the facts of economic activity

Most businesses carry out their functions for the purpose of generating income. For the smooth operation of all departments of the company, constant monitoring is required. It is necessary to conduct continuous work with documents that reflect data on all business transactions.

It is important to analyze the economic activities of the enterprise for constant control over these processes. Economic activity is reflected in accounting registers and codes:

- account analysis;

- account card;

- turnover balance sheet;

- chess.

The main report of any company is the balance sheet. According to this document, a knowledgeable person can immediately analyze the economic condition of the company. Not a single transaction performed in the course of economic activity takes place on its own, all actions are reflected in the registers and are taken into account in reporting, analysis and forecasting.

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