is known economic profit in its pure form is a difference that is formed between the so-called balance sheet and group profit of mandatory payments, including taxes for financial results and, consequently, profit.It is worth noting that the taxes paid on the financial results, including the following: a tax on property owned by the company, the maintenance of socio-cultural and housing, and to the needs of the police force, education and others.This is a serious tax load.This is necessary to consider that, in accordance with Russian law income tax is calculated, starting from the balance sheet profit, which, of course, is much higher than the actual profit, which fully reflects the economic and financial activities of an enterprise.As a result, there may be cases where as part of the amount of the payment of taxes is not only economic profit, but also partly working capital.Thus, revenues from sales of products is not always fully can provide good returns.
functions performed profitably
profit, as one of the most important categories that exist in market relations, of course, it performs a number of functions.First of all, it should be noted that the gain is primarily characterized efficiency.It is understood that the mere existence of such a fact as the economic profit shows that the company is profitable, and revenue from sales of products is sufficient for the development of production.
Secondly, do not forget about the so-called incentive function returns.It is the presence of the latter is possible to perform various kinds of social programs, the development of production, an increase in the capital itself, and the like.
third position in the list is a function of income as an indicator of the effectiveness of a variety of investment projects, such as the introduction of new technological processes, equipment, and the definition of revenues will depend on the efficiency of production.It can be estimated in this way the effectiveness of different kinds of marketing techniques.
cost reduction as a way to increase profits
For any producer of one of the primary tasks is to reduce production costs, which is natural increase profits.In carrying out such an operation as the definition of revenue.You should not unconditionally and absolutely the most important thing to assess the figures, it is important to consider this figure as the cost of production.In practice, the classic version of cost savings are, of course, saving fuel and raw materials, labor costs due to modernization, reduction of selling and administrative expenses and so on.It should be remembered that the reduction of production costs must be reasonable and take into account the fact that at a certain level occurs is already declining quality, and the economic profit will also decrease, and exponentially.
At the present stage of development of widely used so-called innovative methods to reduce costs, such as management accounting.It enables effective control of costs, total cost of the enterprise.As a kind of accounting can be applied, distributed by centers of responsibility as part of the administrative functions vested in the line management structure, which, in turn, are fully or partially responsible for the actual performance of expenditures within the planned values and indicators.