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The gross output of an enterprise reflects the total volume of products produced by the enterprise in value terms.
Gross output of an enterprise (association) is the cost of those products (things, services) that are sold or intended to be sold externally, and the increase in the balance of its work in progress.
The gross output of an enterprise is usually called the entire amount of its products and semi-finished products produced per year before leaving the factory. The value of this production, divided by the number of annual workers, gives the worker's annual gross output. Within the same production and with the same method of calculation for different years changes in the gross output of the worker are fully consistent with changes in the general level of labor productivity in a given production. They are less suitable for comparing productivity over different years for the entire industry as a whole, if the proportion of terms in this sum changes noticeably, and are completely unsuitable for comparing different industries with each other. The fact is that the assessment of gross output includes only the value added by labor in a given production, but also the entire value of raw materials, fuel and depreciation of equipment produced in other industries, but transferred during the labor process to the manufactured product. And since the share of raw materials and fuel per unit of product is extremely different in different industries, it is completely impossible to compare the productivity of labor in them based on their gross output. However, before proceeding to study the so-called clean products, let's see what the available data on gross production can tell us.
The gross output of an enterprise is the volume in value terms of all finished products and semi-finished products manufactured in the reporting period both from its own material and from the customer’s material, as well as the cost of industrial work performed minus the cost of finished products and semi-finished products of its production consumed in industrial production. production needs of the enterprise, regardless of the time of their manufacture.
Calculating the gross output of an enterprise using the factory method eliminates the repetition of counting (intra-factory turnover) of the enterprise's products.
An integral element of the gross output of an enterprise with a long production cycle is the change in the value of work in progress. In contrast to this calculation scheme, developed jointly by statisticians from CMEA member countries, in Czechoslovakia the gross output also includes the cost of construction work carried out by industrial enterprises in own facilities production and non-production purposes, and the cost of geological survey work carried out by industrial enterprises for their own capital construction.
The gross output of an enterprise includes the cost of finished products, semi-finished products and production services intended for use both within the enterprise and sold externally, the cost of manufacturing and repairing containers, if it is not included in the price of the product. Gross output characterizes the total volume of production activity of an enterprise, regardless of the degree of product readiness.
Thus, the gross output of an enterprise is the total volume of products in value terms produced during the reporting period by all workshops, minus intra-factory turnover. This means that the size of the enterprise's gross output is equal to the difference between gross turnover and intra-factory turnover.
From the table it is clear that gross output enterprises tend to increase. Over five years, production volume increased by 9%, and this increase was due to increased labor productivity with a decrease in the number of workers.
An individual tax is levied on the value of the enterprise's gross output, and a universal tax is levied on the unit value of the product. Based on the time of payment, they are classified into one-time and reusable. One-time taxes are paid once at any stage of production, multiple taxes are paid at each stage. production cycle.
In 1941 - 1944 The volume of gross output of NKV enterprises more than doubled at constant prices in 1926/27/39/, with a relatively stable number of employees, as shown in the table below.
Since the spring of 2014, the American Bureau of Economic Analysis has published quarterly statistics on another indicator. It is called “gross output” (GP) and will be a measure of total sales volumes at all stages of production. The new figure is almost double GDP, a standard measure of annual output of final goods and services that was developed fifty years ago. There are still discussions among economists about how to correctly assess the growth of the national economy.
Concept and its definition
The concept of gross output is used in the UN System of National Accounts (SNA) and the methodology for estimating economic growth. It is equal to GDP plus intermediate consumption. The new indicator reflects the total, and not the final sales volumes of all enterprises for the reporting period (year or quarter). Government and household expenditures are also included in the calculation. To obtain net output, the cost of intermediate goods and services is subtracted.
Production concept
The statistical definition of gross output depends on the definition of another term. This is production. Some economic flows and activities are excluded from the calculation because they are not part of the business cycle. These include a range of overseas transactions, income from property rights, transfers, land sales, various government payments, unpaid domestic work and voluntary work. All this is reflected in the production concept. On the other hand, gross output includes a number of dual activities. For example, the implied rental value of owner-occupied housing.
New statistics
The legendary investor Mark Skousen presented a new economic unit in his work “The Structure of Production.” Gross output has been the subject of his study since 1990. Even then, he understood the shortcomings of GDP and tried to find an indicator that would become a criterion for spending throughout the entire production process, and not just the final result. Gross output is, according to Skousen, his personal triumph, for which he does not at all regret spending 25 years. A special feature of the new indicator is that it illustrates all stages of the business cycle. Therefore, it is more related to the theory of economic growth.
GDP and value of gross output
Nobel laureate Simon Kuznets, who was the direct developer of the concept of final goods and services, understood the shortcomings of his indicator. Over time, critics have proposed many analogues, but none of them have gained widespread acceptance. The cost of gross output is already used by the American Bureau of Economic Statistics, and it has every chance of gaining popularity. GDP is a good measure of the economic productivity of a national economy.
But it has a significant drawback. GDP limits itself to final products and, in most cases, ignores or downplays the results of intermediate stages of output. For example, journalists routinely describe consumer and government spending as driving force economy. They make up 90%. And private investments are only unfortunate 13! Thus, by focusing only on final output, GDP understates the money spent and economic activity in the early stages of the production process. It's as if manufacturers, suppliers and designers are barely contributing to overall growth.
Benefits of the new indicator
Gross output is an indicator that exposes the shortcomings of GDP. Mark Skousen's work outlines many of the benefits of using it. Among them are the following:
Discussions around VP
The key problem of the economy is the need to get rid of “double counting”. And the calculation of gross output is based on it! However, a product can be sold countless times: as a resource, as a result of production, to wholesalers, and then to retail customers. GDP eliminates “double counting by measuring only the value added created at each stage. However, in this case, we lose vital business decisions that are made during the production process. Therefore, it is hardly possible to concentrate only on added value!
History of economic growth measurement
The last century passed under the auspices of the increasing pace of internationalization of economic life. There was a need to compare the economic growth of different countries. Two Russian scientists were pioneers in this field. Both taught at Harvard University and received Nobel Prize for your work. After the Bretton Woods agreements of 1946, GDP, the calculation method for which was developed by Kuznets, became the standard measure of economic growth. A few years later, Vasily Leontiev published his Input-Output Matrix. It is on his developments that indicators that take into account the intermediate stages of the business cycle are based. However, it was easier to calculate GDP, so economic theory temporarily abandoned this, albeit a more accurate indicator. Gross enterprise output was sometimes used only as an indicator at the micro level
Today, there are several ways to assess economic growth. The most common is the calculation of GDP. His technique was developed by Simon Kuznets. However, it only includes final products. And this is causing significant debate among economists. Exists a whole series similar methods for assessing growth. Recently, the UN SNA includes gross output, which was popularized by the famous investor Mark Skousen. The main difference of the new indicator is the inclusion of intermediate consumption in the calculation.
Gross output- an indicator characterizing in monetary terms the total volume of production of individual enterprises, associations, industries, and the national economy as a whole. Calculated in sectors of material production (in industry, agriculture, construction, transport and communications, trade, logistics, etc.) in comparable and current prices. In industry, prices as of January 1, 1975 are currently used as comparable prices, in agriculture - unified (weighted average) all-Union prices of 1973, in construction - estimated prices for January 1, 1969. Gross output of an individual industrial enterprise represents a useful result of industrial production activity, expressed in the form of products or work of an industrial nature; gross output of an industry is the result of the production activities of enterprises in the industry for the reporting period. Gross output includes: the cost of finished products produced during the reporting period in the main, subsidiary, secondary and auxiliary workshops; the cost of semi-finished products of its production and products of auxiliary and ancillary workshops sold to the outside; the cost of work of an industrial nature, carried out under orders from outside or non-industrial farms and organizations of their enterprise (including major repairs and modernization of equipment and vehicles of their enterprise); change in balances (cost of increase or decrease) of semi-finished products of own production and products of auxiliary workshops. At enterprises with a long production cycle, the gross output takes into account changes in balances (the cost of gain or loss) of work in progress.
In accordance with improvement measures organizational structure industrial management by the State Planning Committee of the USSR, the Central Statistical Office of the USSR and the Ministry of Finance of the USSR were approved in 1976. new order planning and accounting of product and labor indicators for production associations (plants). For the association as a whole, the volume of gross output includes the cost of products manufactured by all production units(regardless of their location), which is intended for sale both outside the association and to independent enterprises subordinate to the association, and the cost of products manufactured by those subordinate to the association independent enterprises for implementation. In this case, the volume of gross output of the association is determined without taking into account internal turnover, i.e., without products that are consumed within the association. Gross output in industry is used as a calculated and reporting statistical indicator.
Gross agricultural output is the sum of the value of all crop and livestock products produced in the current year. Gross construction output includes the cost of completed construction projects for a given period; change in the value of construction in progress and unfinished construction production for the same period (value at the end of the period minus value at the beginning of the period); the cost of major repairs of buildings and structures performed during the same period. Using the gross output indicator as an assessment indicator economic activity enterprises has revealed a number of its significant shortcomings (it does not sufficiently focus enterprises on the production of products that are truly necessary for the national economy and the population, in many cases it hinders the improvement of the range and quality of products, etc.). Therefore, at present, an indicator is being introduced to evaluate the activities of industrial enterprises and associations regulatory clean products. The sum of the gross output of all branches of material production, determined without production turnover within the enterprise, constitutes the gross output of the national economy, or the gross social product, calculated using the factory method.
You will need
- Accounting data for the period under review (Balance Sheet, Profit and Loss Statement).
Instructions
Determine the cost of products produced by all departments of the enterprise for the analyzed period (gross product turnover). For calculations, use the accounting data. Find the cost of manufactured and sold products for the period on line 020 “Product cost” of the Profit and Loss Statement.
Find, according to the financial statements, the value of work in progress balances at the beginning and end of the analyzed period. In the Balance Sheet, these figures are entered in lines 130 “Construction in progress” and 213 “Costs in work in progress.” Determine on line 214 Balance Sheet“Finished products and goods for resale” is the value of finished product balances at the beginning and end of the reporting period.
Calculate the gross turnover of products produced by all departments during the period (VO). To the sum of balances of finished goods and work in progress at the end of the period, add the cost of goods sold and subtract the sum of balances of finished goods and work in progress at the beginning of the period. The calculation algorithm follows from the formula for calculating the balance of active accounts at the end of the period: Balance at the beginning + Income for the period - Expense for the period = Balance at the end of the period.
Determine from data accounting the cost of products produced by divisions of the enterprise for their own needs (BC). Review receipt documents or acts of work performed from auxiliary areas for the reporting period. For its own needs, an enterprise, for example, can produce containers or carry out major and current repairs of buildings.
Calculate the cost of the enterprise's gross output for the period using the formula: VP = VO - VS, where VP is the estimated value of the gross output, VO is the gross turnover of all products of the enterprise for the reporting period, BC is the cost of products produced by the enterprise for its own needs. Calculate this figure for the same period last year. Swipe comparative analysis, draw conclusions about trends in enterprise production volumes.
To determine price gross products, it is necessary to apply the factory calculation method. It consists in taking into account only that part products, which participated in the production once. This allows you to avoid double counting, because the company produces intermediate products, which are then recycled.
Instructions
There are several calculated values that determine the volume of production products at the enterprise. Most fully reflects this characteristic gross products. Mathematically, it can be found in the form of the difference between two values of trade turnover: gross turnover and intra-factory (intermediate) consumption: VP = VO - VZP, where: VP - price gross products;VO – gross;IZP – intra-factory consumption.
Gross turnover represents the total price final products of all workshops of the enterprise. It does not matter whether these products were sent directly to or transferred to other workshops as an intermediate material or semi-finished product.
Intraplant turnover is the total price semi-finished products or materials produced at the enterprise itself and intended for processing in another workshop. For example, intermediate spare parts or mechanisms for assembly or other equipment.
In size gross products may include data on the following elements for the reporting period: Finished products; Semi-finished products and products manufactured for final consumption, such as spare parts intended for sale rather than for further assembly vehicle; Works on major renovation, since they are included in the concept of depreciation charges, and those, in turn, are material costs associated with the main production; Remains of work in progress.
IN price gross products financial results for: Defective products, including those sold at reduced prices; Industrial waste; Current repair work, since these costs contribute to intra-factory turnover; Payment of non-production expenses: transport, household needs, etc.; Costs of materials for painting, tinting, nickel plating, etc. (while these works themselves are taken into account).
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Please note
IN food industry For calculations, as a rule, the gross turnover method is used to account for processed semi-finished products. For example, raw sugar can be duplicated in the cost of refined sugar.
Attraction investor It’s worth starting with monitoring the real estate market: a lot depends on how busy it is. Having found several companies that could potentially become your investors, invest in at least a little checking of each of them, since there is a risk of dishonesty on the part of investors. And the main means to attract a reliable investor should be a business plan for your construction.
Instructions
Do some market research on the real estate market. This can be done either independently, using open sources on the Internet (real estate analytical sites, etc.), or by hiring someone who understands this. This will give you a picture of how attractive the property is to investors in at the moment who could invest in your construction projects.
Visit investment company websites. Sometimes you can find out quite a lot about their activities and their condition from the site. Make a list of companies that would suit you as investors. Check them - at least with the help open sources. Order an extract from the Unified State Register legal entities, since you can glean quite a lot of information about the company from it. Select the most reliable potential investors. At first it seems that it doesn’t matter what the company is as long as it provides funds, but this is not so. An unreliable investor may suddenly lose interest in your project, which can lead to your loss.
The main tool for attracting investor attention to your construction is construction plan. In it you should describe the concept of the construction project, the market situation with such projects, necessary work, the necessary funds, the payback of the project. The latter is most important because the investor is investing in order to get the maximum return. Accordingly, his interest in your project depends on whether this project will bring him the expected result.
Much depends not only on the business plan, but also on you. An investor is unlikely to seek to manage your project; all he needs is . Therefore, he must be confident that all those brilliant numbers indicated in your plan will be achieved. Therefore, you must come across not only as someone who is knowledgeable about the real estate market, but also as a capable manager.
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Please note
Finding and selecting an investor for a venture enterprise at the earliest stage of its development is one of the most difficult and responsible tasks. Not all money is the same. “You can divorce your wife, but never divorce an investor!” - say venture capitalists. Keep this in mind and choose your investor carefully.
On the other hand, there is a bias towards investors. By means mass media the image of an investor has been created as a person who speculates on the stock exchange, buys everything “on the vine”, and is something between a fraudster and a gambler. So, you have a business idea that needs an investor to implement. How to find and interest an investor?
Sources:
- investors in construction in 2019
How to find gross output in the balance sheet of an industrial enterprise when preparing financial statements? This question is asked by many modern accountants, who must know what gross output includes and how all the necessary indicators are calculated.
Instructions
After this, accurately summarize all the results you received, and subsequently select all the displayed data into the enterprises in which the gross from is indicated. When you already have a specific total amount, simply add to it the annual increase in the value of all inventories. Secondly, pay attention to services in each industry if you work in a multi-industry business. To find gross output and to find it correctly, it is necessary to use accurate prices.
Remember that in industries such as forestry, agriculture, manufacturing and mining, calculating the value of gross output is much more difficult. This fact occurs due to the fact that the reporting documentation does not contain comprehensive information. If your enterprise does not belong to these industries, then gross output is relatively easy to calculate. After making the initial calculations, perform the following action - quickly fill in all information gaps regarding data on the full sales amounts of finished products produced by your enterprise.
In your calculations, be sure to take into account the cost of inventory stored in various production warehouses, and then make any necessary adjustments. Be sure, after calculating all totals, to bring them into line with accepted industry classifications using the latest calculation concepts. As a result, you should get the cost of manufactured products taking into account the manufacturer's price.
Unsold goods stored in warehouses of your enterprise, at the time of reporting, evaluate using the same methods as sold products. At the same time, the increase in work in progress and inventories in warehouses can be assessed both at book value and taking into account, without taking into account the estimated profit. The obtained data can subsequently be used for both financial reporting and statistical accounting.
The correct calculation of the volume of production ensures rational planning of the work of any production, as well as sales and supply services. In addition, this procedure helps to objectively assess the capacity of an enterprise/organization in physical terms and in monetary terms.
You will need
- - accounting reports.
Instructions
Calculate the monetary value of two amounts - finished products at the beginning of the reporting period and at the time of its end. To carry out this operation, borrow indicators from statistical accounting reports, which are compiled by an organization or enterprise for the statistics committee of the region where it is located.
Find the volume of finished products in natural. It is not difficult to standardize such a calculation process. To do this, add up such quantities as finished products released, the number of their outgoing balances, the number of finished products sold and the number of finished products left at the beginning of the reporting period.
Since the above calculation is relative, to obtain a more accurate and correct value, add to the revenue from the sale of manufactured products the difference calculated above by the total amount of production for the reporting period and the balance of manufactured products.
Please note
The rationality of drawing up a plan for its sales through the existing distribution network, as well as the correctness of expanding this network, depends on the correctness of calculating the volume of finished products in monetary terms.
Useful advice
The dynamics of changes in the volume of production are monitored according to the growth/decrease graph of the revenue of an enterprise or organization during the reporting period. This schedule is built on the basis of the data specified in Form No. 2 of the financial statements. Information is taken for two reporting years or a longer period.
Sources:
- Analysis of production volume and product sales
- determine production volume
Determine volume gross products in most cases, it is possible using the factory method, which eliminates the repeated counting of intermediate products. This calculated statistical indicator characterizes the growth rate of production and labor productivity.
Instructions
The gross output of an enterprise is the total monetary value of units of goods for the reporting period of time. This does not take into account the cost of finished products and semi-finished products involved in its production, i.e. sold for domestic consumption. This calculation strategy allows you to avoid repeated calculations, since the costs of raw materials participate in the formation of the total value. However, at some enterprises in the light and food industries, double counting is allowed.
This calculation method is called factory calculation. It can be used to determine the volume gross products, which in general is equal to the commodity products minus the residual value of work in progress, as well as the cost of residual equipment, tools and special-purpose devices: V = TP + (HP2 - HP1) + (I2 - I1).
TP marketable products represent the total cost of a batch of goods or services produced for sale outside the enterprise. This value is expressed in the prices at which the goods are sold to the consumer, depending on the volume of purchase: wholesale or retail.
Work in progress indicators NP2 and NP1 are calculated, respectively, at the end and beginning of the reporting period. The difference between them shows the cost of semi-finished products and materials already included in commercial products, as well as intermediate products of the unfinished production cycle. The second applies to enterprises producing metal structures, for example, machine-building plants.
The residual value of instruments I2 and I1 is determined at the end and beginning of the period. The list of equipment and special devices used is approved for each individual enterprise and certified by the managing ministry or department.
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Tip 7: How to determine the volume of gross, marketable and sold products
Analysis of results financial activities enterprise covers several areas, in particular, volume calculation products. Depending on the calculation methods, products can be marketed, gross, sold or net.
Instructions
The profit of the enterprise is based on the results of the finished products, based on the volume of its sales. It is important for any manufacturer that this indicator has a positive sign and corresponds to forecasts. Therefore, financial analysis is regularly carried out on each, within the framework of which, in particular, it is necessary to determine the volume gross, commodity and sold products.
All three quantitative indicators represent volumes products, calculated according to different methods. Gross volume products, produced at the enterprise using its own or purchased materials, minus intermediate products and semi-finished products involved in production. This means that gross output includes only final goods. This method avoids double counting and is called factory method.
The gross output of an agricultural enterprise includes agricultural products and products of other industries and ancillary industries (Fig. 11); Typically, agricultural products account for 80-85%.
Gross agricultural output represents the total quantity of products produced in an industry over a certain period of time; it consists of gross crop production and livestock products.
Gross crop production includes gross harvests of agricultural crops (including by-products), the cost of planting perennial crops, the cost of growing young perennial crops and the increase in work in progress.
Gross livestock production includes finished products not related to animal slaughter (milk, wool, eggs), offspring, growth of young and adult livestock, as well as by-products.
Gross agricultural output is taken into account in physical and value terms. In physical terms, it is determined by certain species products. The cost of gross output is calculated in comparable prices and current prices (the commodity part of it - at sales prices, the non-commodity part - at cost), as well as at cost.
To determine the total volume of production, its changes over the years, as well as to calculate indicators of the economic efficiency of the use of land, material and labor resources (land yield, capital productivity, labor productivity, etc.) and other purposes, gross output is assessed in comparable prices. Currently, comparable prices of 1994 are used for agricultural products, taking into account denomination; for example, the price of 1 centner of wheat is 10.95 rubles, sugar beets - 5.57 rubles, milk - 29.63 rubles. etc. The assessment of gross output at current prices is used to calculate gross and net income.
Gross output is an important economic indicator that characterizes the size of an agricultural enterprise;
it is also needed to determine the share of agriculture in the total social product, the sectoral structure of production, the share individual categories farms in the total mass of products produced.
At the same time, the indicator of gross agricultural output has a number of shortcomings that do not allow it to be used to objectively assess the results of an enterprise’s economic activities. Firstly, gross output is the result of the use of both living and past labor, as a result of which indicators calculated using gross output do not give a real idea of the role of living labor. Secondly, gross output, calculated as the sum of crop and livestock production, allows for repeated counting (feed produced in the enterprise and consumed in the same year will be counted twice: as part of crop production and as a component element of costs in the cost of livestock production). Thirdly, when assessing gross output at current prices, its actual value is underestimated or overestimated, since the non-commodity part of the product is valued at cost, which can be either lower or higher than current market prices. Fourthly, the gross output indicator, calculated in comparable prices, does not reflect the quality of the product.
The production and consumption of agricultural products are continuous and therefore represent elements of a process reproduction, which also includes distribution and exchange.
There are three types of reproduction:
narrowed, in which the size of production decreases;
simple, in which they remain unchanged;
expanded, when the quantity of products produced increases from cycle to cycle.
Each of these types of production has not only a quantitative, but also a qualitative side. Along with a decrease in production volumes, narrowed reproduction is characterized by degradation of quality parameters, which is a consequence and form of manifestation of the crisis in the economy. Narrowed reproduction can be caused by factors of both non-economic (wars, political upheavals) and economic origins - incorrectly chosen goals and means of economic activity, imbalances that arose spontaneously or as a result of management errors. Narrowed reproduction can be observed in individual industries, regions and in the national economy as a whole. It was narrowed reproduction that was characteristic of Russian agriculture during the years of agrarian reform. During this period, gross agricultural output decreased by 38%.
Simple reproduction means the resumption of activity in the same quantitative parameters and in the same qualitative state. Simple reproduction acts as the economic basis for stabilizing production, which is an indispensable condition for further development.
Expanded reproduction is characterized by an increase in production volume compared to the previous period and positive qualitative changes in production. In this case, the means of production are systematically improved based on the achievements of scientific and technological progress.
Reproduction in agriculture is characterized by the following features.
1. The interweaving of economic processes of reproduction with natural ones, which govern the development of plants and animals. In particular, the timing of obtaining agricultural products is determined by the biological characteristics of plants and animals.
2. The process of reproduction in agriculture is greatly influenced by natural conditions, first of all, the soil and climatic characteristics of the territory where the enterprise is located.
3. Land as the main means of production in agriculture is not reproduced in its material form. Increasing soil fertility is an indispensable condition for expanded reproduction in the industry.
4. The seasonal nature of production in agriculture, the discrepancy between the working period and the production period.
5. The annual cycle of reproduction in most sub-sectors of agriculture, determined by biological and climatic factors.
6. In agriculture, both means of production and consumer goods are created. Therefore, a number of products take part in the subsequent production process (feed, seeds, livestock).
To implement expanded reproduction in agriculture, certain conditions are required. The most important of them is the creation of a well-functioning economic mechanism, the establishment of price parity between agriculture and other sectors, and the reduction of inflation. Expanded reproduction requires constant compensation in kind and in value for the consumed means of production and provision of savings for the acquisition of additional resources.
An indispensable condition for expanded reproduction is the uninterrupted circulation of funds that successively pass through the stages of production, distribution, exchange and consumption. This requires clear, coordinated work of rural commodity producers, supply, marketing, and financial organizations based on the development of cooperation and agro-industrial integration.
Expanded reproduction in the industry requires equipping agriculture with the necessary means of production that contribute to the introduction of scientific and technological progress and increased labor productivity.
Sources of expanded reproduction There may be own, borrowed and attracted funds, which are used to replenish fixed and working capital. Own sources include profit, differential rent, part of agricultural products (feed, seeds, livestock); borrowed - short-term and long-term bank loans, trade credit; attracted - shares, subsidies, compensation.
Indicators of expanded reproduction in agriculture are quite numerous, but the main one is the increase in gross output,%:
where VP K, VP N - the cost of gross output, respectively, at the end and beginning of the year (period) in comparable prices, rubles.
Another indicator is the accumulation rate (N n), defined as the ratio of the accumulation fund (F n) to the entire net income (NI) or profit (P) as a percentage:
They also use the indicator of the expanded reproduction of funds (N r) - the ratio of the accumulation fund to production fixed (F os) and circulating (Fob) funds, expressed as a percentage:
Growth can be used as indirect (additional) indicators of expanded reproduction production assets, expansion of cultivated areas, increase in livestock numbers, improvement of workers’ qualifications, etc.
Expanded reproduction of agricultural products is due to both extensive and intensive factors.
At extensive type of development, an increase in production volume is achieved through a quantitative increase in production factors: land, labor, production assets on the same technical basis; however, labor productivity does not increase. For example, plowing virgin lands in order to obtain more agricultural products is an extensive way of expanded reproduction.
Intensive The path is characterized by an increase in agricultural output through the use of more advanced equipment, advanced technologies, new varieties of plants and animal breeds, scientific achievements, and advanced training of workers. In this case, an increase in labor productivity, an increase in product quality, and a more efficient use of production resources are achieved.
Thus, with an extensive type of development, economic growth is achieved through increasing production factors, and with an intensive type, through their qualitative improvement and better use.
With the development and assimilation of the achievements of scientific and technological progress, the intensive type of growth becomes predominant. However, in real life Both types of expanded reproduction are closely intertwined, so it is better to talk about a predominantly extensive or predominantly intensive type of economic growth.
Gross output in natural material form is represented by means of production and consumer goods. The means of production include products that are used within agriculture itself for production purposes (seeds, feed, etc.), as well as products that are used as raw materials for industry. Consumer goods include that part of the gross output that goes into consumption directly, bypassing industrial processing.
In terms of value, gross agricultural output consists of two parts: the cost of consumed means of production (With) and newly created value (v+ m). In general, in value form, gross agricultural output looks like this: With+v+ T.
The distribution of gross agricultural output is shown in Fig. 12.
The main condition for reproduction (simple and extended) is the reimbursement of consumed means of production. For this purpose, a compensation fund is formed, which represents part of the value of the gross output created by past labor and transferred to the produced product. Another part of the value of gross output is gross income.
At the expense of gross income, a consumption fund (personal and public) and an accumulation fund are ultimately formed. Gross income is divided into two parts: personal consumption fund (wages with contributions for social needs) and net income.
Net income is used to pay taxes to the budget, form a public consumption fund and an accumulation fund.
Thus, as a result of the distribution of gross agricultural output, three reproduction funds are formed: a compensation fund, a consumption fund and an accumulation fund.
Compensation Fund represents the part of the value of gross output used to renew the objects and means of labor consumed in the production process. He equal to the sum material costs and depreciation charges.
Consumption fund - part of the gross income, that is, the newly created value that goes to pay for labor and satisfy the personal and social needs of the team. It consists of the wage fund and part of the net income used for consumption.
Savings Fund- this is the part of net income intended for expanded reproduction.
The formation of reproduction funds in kind has industry-specific characteristics. A significant part of them in agriculture is formed from products of own production. This applies to all funds - reimbursement, consumption and accumulation.
Consumed seeds and feed are reimbursed from a portion of the harvest. The increase in seed and fodder funds (this is already an accumulation fund) is also carried out mainly at the expense of its own products. Replacement of culled livestock (compensation fund) and expansion of livestock (accumulation fund) is carried out, as a rule, at the expense of young animals raised on the farm. Finally, a certain part of the enterprise's production is used as payment in kind (consumption fund).