The concept of "production and economic activity" of an enterprise, regardless of the form of ownership and type of activity, includes many factors that ultimately determine its effectiveness. These factors are an objective complex criterion reflecting the productivity of production processes that ensure the functioning of a complex organism, which is every enterprise.
What is included in the concept of "production and economic activity"
The activity of an enterprise is a process that includes not only the direct production of goods or the provision of services, but also financial and economic activities, supply, sales of products, the use of labor and material resources, equipment and technology. An enterprise is a structured and living organism.
The structure of any enterprise includes an administrative and managerial apparatus, a production department, a financial and economic department, and an accounting and reporting department. In addition, the structure may include other divisions whose tasks are to ensure a continuous process of release and manufacture of products that would be competitive and meet the requirements of the market in terms of quantity, quality and delivery time. In this case, the main requirement and criterion for the efficiency of the enterprise is the minimization of production costs, i.e. reduction in the cost of goods and services produced.
Factors determining the production and economic activities of the enterprise
The efficiency of the production and economic activity of the enterprise, first of all, depends on such factors as the availability of production facilities, the state of the production and technical base, its technical and organizational level, the extent to which the organization of production and labor meets the modern requirements of the conjuncture and the market.
Of great importance for the activities of the enterprise is also such a factor as financial and economic planning. This is not only the uninterrupted provision of the necessary resources, but also constant control over the current activities of the enterprise, prompt adjustment of management decisions in order to achieve planned results.
Control is carried out by analyzing the production and economic activities of the enterprise by comparing the main results of this activity with the calculated and planned indicators. Such indicators characterizing the efficiency of the enterprise, for example, include:
- profit from the sale of goods and services rendered;
- total production costs;
- profitability;
- the level of remuneration of people working at the enterprise;
- the amount of funds in the settlement accounts of the enterprise;
- existing accounts payable and receivable.
