Incomes and costs of the enterprise. Their relationship.

Modern Russian enterprises operate in an environment of high economic profitability. The profound changes that have occurred in the domestic economy over the past few years have not only largely determined the specifics of the transition to market conditions, but also significantly complicated the conditions for the survival of enterprises in the new conditions. Saturation of the market, reduction of technological cycles of production, aspiration to concentration of the enterprises, can complicate development of new manufacture.

Private enterprises in a market economy are one of the most important conditions for microeconomic analysis. They can be studied from a variety of angles of view, but primarily they are the mechanism for transforming the investment of capital, natural resources and human activities into finished products, which are services and manufactured goods created to meet human needs. The costs of the enterprise are those payments that the company must make or the revenues it is forced to provide to the resource provider so that these resources do not participate in alternative production. From this it follows that all costs of the enterprise and their types are alternative.

Alternative costs of the enterprise - this is the main obstacle that an enterprise may encounter in the process of striving for maximum profit. Production costs can be logically divided into explicit and implicit. At the same time, direct costs include direct payments to suppliers of basic and additional factors of production, staff salaries, commission payments to banks and commercial firms, fees for legal services, payment of transportation costs. Alternative costs of spending resources, not provided for by contracts, are classified as implicit production costs . As a rule, these payments are not reflected in the company's accounting reports, but from this are not less significant.

Costs that are variable for one enterprise, for another, may well be permanent. Thus, the implementation of variable costs in the enterprise was called "variable production costs." The very significant differences between fixed and variable costs are the main delineation of two temporal aspects - short-term time intervals and long-term time intervals.

Profit is one of the most important financial indicators that make up the economic base of an enterprise and characterize the effectiveness of its activities. Therefore, each company must develop its own plan to increase profits. This can be improved quality or increased output, leasing or selling excess equipment, reducing production costs, due to more rational use of natural resources or other points. One way or another, but the income and costs of the enterprise are closely related: profit indicates the area of activity where it is possible to achieve the maximum increase in value, the losses signal about those moments when errors were made in the expenditure of funds or the organization of production.

The costs of the enterprise play a significant role in the formation of the main aspect of the enterprise's work - loss or profit. Of course, obtaining maximum profit is the most favorable outcome for any enterprise. Nevertheless, one should strive not only to obtain the greatest income, but also to its rational use. This will allow the enterprise not only to retain its positions in a market economy, but also to ensure the favorable development of its own business in the conditions of severe competition.