Over a long period of work for various reasons, the conditions of the company, the structure of its resources are subject to change.Scenarios of these changes can also be quite diverse, for example, a firm may change the volume of production, purchase new equipment, rent free production facilities.All this to some extent affects the production costs in the long term.The magnitude of changes made in the company determines, respectively, and a variety of costs.
There is a definite pattern of the dependence of the magnitude of the costs of the reforms.For example, the constant increase in the capacity objective entails the growth of average total cost.In considering the long term average costs tend to vary depending on the scale change, while their minimum parameter indicative of the optimum value output.There is a minimum parameter that determines the cost of production of the company.It represents a minimum volume of production at which the company can lower its average production costs in the long run.Effectiveness in this embodiment is determined by the relationship: the more a company produces a product, the less will be the average costs.
establishment of the optimal value of production costs at which the guaranteed market stability provided by the company, is one of the main goals of its economic activity.To this situation was stable, it is necessary to understand the nature of costs, represent their classification structure and know how vzaimootnosyatsya production costs and profits of the company.
In the simplest manner, the production costs are the resources that are consumed by the enterprise or in the process of creating marketable products.In this context, all of the production costs in the long term should be regarded as payment for the used factors of production.These include depreciation, payment of materials, wages of workers, and more.With the implementation of manufactured products, the company receives revenue from which goes to the payment of the costs associated with the production, the other part of the proceeds directed to things for which production is organized.
Modern economists-researchers consider the cost of production in the long term from the point of view of the entrepreneur and not the way it is supposed, for example, the Marxist interpretation.Under current approaches, these costs differ from those associated with the advance of capital and represent only those costs that arise during production of the particular product.
Distribution costs represent the costs of the sale of goods.They are classified as clean (which are directly related to the process of buying and selling) and additional (related to the infrastructure within which ensured the implementation of the goods).Note that additional, as such, do not increase the amount of value and may be redeemed only after the sale of commercial products derived from company profits.Further, these costs are called because they are objective appendage net profit.The current stage of development economics comes from the fact that the company or the company expects to receive income from any and all costs that they may have in the course of its operations in order to ensure guaranteed positive business development and the stability of the markets in the conditions of growing competition.
