Let's repeat the memorized axiom once again: in order to produce something and successfully sell, it is necessary to have not only entrepreneurial talents and a great desire, but also much more weighty arguments. At a minimum, you need to create a material base for your business: even for conveyor reproduction of wooden dolls, you need a closet, tools, logs, and some other side costs.
Fixed and working capital of the enterprise
Economics has come up with to describe this simple process very complex terminology, with which we will try to introduce you.
So, the main funds of the enterprise. According to the theory, they act as the main means of labor, maintain their natural form over a long period of time, which is gradually transferred to the cost of production. To simplify this wording, the depreciation of the equipment (it does not matter which one) that is used in your production cycle due to depreciation and the accumulation of working capital is reinvested in the development of the enterprise. AT this case current assets of the enterprise become an important source of replenishment and renewal of its fixed assets.
The classical classification of fixed assets, even from the point of view of accounting, implies their division into the following groups:
What does a company's working capital include?
working capital companies, for all the seeming simplicity of their definition, all textbooks on the housekeeper are forced to divide into three interpenetrating and intersecting groups.
Revolving production funds. Here everything is more or less clear and understandable. Not a single production can do without tools (not to be confused with fixed assets) and objects of labor. The former include tools with a wear life of up to a year, improvised means and low-value technical devices, the latter are those resources without which the company's production activities are impossible: raw materials, components, semi-finished products, packaging material and containers, etc.
In addition, the following positions are included in the structure of working capital assets:
work in progress: the value of all parts, assemblies, elements of the future product, which is still in the process of manufacturing and fine-tuning;
deferred expenses: financial resources purposefully allocated for the development of new technologies, equipment reconstruction, but being at the development stage, i.e. not transferred to this moment on the cost of the finished product.
In the company's current assets, an important place is occupied by circulation funds, which are formed from standardized (not always) stocks of finished products to be sold, and free cash balances on the company's accounts. Often it is these components of the company's working capital that are actively used by them to carry out investment diversification of their position in the market. Unlike circulating funds, the value of which ultimately finds its expression in the price of a commodity, circulation funds give wide opportunities for varying behavior in the market.
Working capital is a flexible and renewable component of the enterprise's material assets.
Concept definition
Working capital is the value of all the assets of the enterprise that are listed as inventories or have already been put into manufacturing process. A sufficient number and optimal structure of values in this category is one of the main conditions for the successful and efficient operation of any organization.
An important point is that working capital is that part of the funds that is directly involved in production. At the same time, they completely or partially change their material and material form. It is necessary to clearly separate the resources that provide a continuous production process (for example, electricity), and those that are directly part of the finished product (raw materials).
It should be noted that working capital is an important component not only of the economy of an individual enterprise, but also of the state as a whole. It is important that this category includes not only resources and materials, but also financial resources and intangible assets (permits, rights, and so on).
Revolving production assets
Some tools are used to directly service the process of making products. They have a specific name - circulating production assets. Their peculiarity is that they are completely consumed and transfer their value to the finished product. In addition, this figure can increase significantly due to the fact that certain products are processed and completely change their shape.
OPF includes raw materials, tools that are used for no longer than one production cycle, as well as semi-finished products, work in progress and stocks. Another integral component is the costs of future periods, which represent a certain margin of safety associated with the need to upgrade equipment, purchase materials, and so on.
In order to effectively manage the BPF, it is necessary to carry out the following organizational measures:
- clearly define the composition of the funds and their structure in numerical terms;
- identify the need for missing funds;
- identification of priority sources from which working capital will regularly enter production;
- rational use of funds (complete elimination of overspending or shortage).
Working capital of the enterprise
An obligatory element of any production is certain resources that make up the cost of production. Their monetary expression is the working capital of the enterprise. For the normal operation of the organization, you must always have the necessary supply of these resources. Nevertheless, any production strives to save these funds, which can significantly reduce costs, and therefore increase profits. However, this should not compromise quality.
The composition of working capital includes the following structural elements:
- stocks are certain resources that are intended and prepared for introduction into the production process (these are materials, raw materials, semi-finished products, and spare parts, and energetic resources, And so on);
- work in progress - these are certain elements that have already been launched into the workflow, but have not yet reached the state of the finished product (this also includes their own semi-finished products intended for internal use);
- deferred costs are the amounts of funds included in the cost of the product, but related to future developments and projects (they do not have a material form).
The difference between fixed and working capital
Production assets at the enterprise are defined as the sum of the cost of fixed assets, as well as working capital. These categories have fundamental differences, which are not only in the method, but also in the time of use.
Fixed and working capital differ from each other primarily in the duration of use. Thus, OBs completely change their material form. They cannot be used for more than one production cycle (only some tools may be an exception). Speaking of OF, it is worth noting that they are used for a long time. These can be buildings, structures, equipment, machines, etc., which have a high cost and take part in a number of production cycles.
Fixed and revolving funds also differ in how they transfer their value to the product. So, the former involve the gradual accrual of depreciation, the amount of which later goes to reconstruction or renovation. The cost of working capital is immediately included in the cost of finished goods.
It is also worth noting the fact that the production assets, which are the main ones, do not change their form. Their wear and tear cannot be classified in this category. But working capital changes completely: fuel is converted into energy, raw materials into finished products, and so on.
Rational use of working capital
One of the main tasks of any enterprise is to reduce the cost of the finished product, which is achieved when the use of working capital is rational. This can be expressed in the following basic terms:
- significant savings in raw materials and materials makes it possible to reduce production costs or increase the number of products;
- Reducing the cost of raw materials can also be achieved through the use of innovative materials, which can improve the characteristics and improve the quality of products;
- on the way to saving working capital, a decision can be made to rationalize the production process and introduce new technologies that will significantly reduce the consumption of materials;
- saving working capital is inextricably linked with saving labor, which will improve the structure and quantitative composition of the workers of the enterprise;
- reducing the share of working capital in the cost of products, it becomes possible to pay more attention and funds to the technological component, which significantly improves the quality and final price of products;
- if an enterprise does not have ambitions to expand the scale of production or upgrade the technological component, then saving working capital can help improve the economic situation, as well as overcome the crisis.
Main characteristics
The indicators of revolving funds reflect, firstly, the amount of resources spent, and secondly, their usefulness. Speaking about the first data, it is worth highlighting the following main values:
- The consumption of working capital is calculated as the sum of all material resources involved in the production in monetary terms (can be defined as certain types products, as well as throughout the program).
- Material intensity allows you to estimate how many resources in physical or monetary terms were used to produce one unit of goods (it is necessary total consumption divided by the number of received products of a particular name). This is true when it comes to piece goods. Otherwise, the consumption of materials per physical unit (kilogram, liter, ton, and so on) is calculated.
If working capital requires preliminary processing before being put into production, then the following indicators are used to evaluate them:
- remainder beneficial substance after primary processing of raw materials;
- percentage of losses (meaning the ratio of the useful component and waste);
- product yield - is determined by the ratio of the number of good products to the initial volume of raw materials before processing.
Quite an important indicator that characterizes working capital is their turnover. This is the speed of their movement in the enterprise. The time for one revolution is full cycle from the launch of raw materials into production to the receipt of the finished product. The higher this speed, the more efficient is the organization of work at the enterprise. 
Turnover indicators of working capital
The following main indicators are distinguished:
- Turnover ratio - calculated as a ratio products sold to the balance of working capital in monetary terms for a certain period. It shows the number of full turnovers for the period, and is also considered commensurate with the rate of return on assets.
- Duration of turnover - is determined by dividing the duration of the reporting period by the turnover ratio of working capital.
- Fixing coefficient - is an indicator, the reciprocal of the turnover ratio. It can be determined by dividing the balance of capital by the cost of goods produced. It characterizes the amount of working capital that falls on each unit of the cost of production.
How to speed up turnover
It is possible to accelerate the turnover of working capital through the introduction of a number of measures that are used in different stages production process. This allows you to significantly reduce the consumption of materials, as well as more accurately organize their movement during work.
Working capital includes inventories, and therefore, at the stage of their formation, it is worth resorting to the following measures:
- establishment of economically justified norms for the formation of raw material reserves;
- selection of suppliers with the most favorable geographical location, which will reduce the time and cost of deliveries;
- development of a system for automating the loading of materials into the warehouse, as well as their release into production.
If we are talking about work in progress, then it would be appropriate to make the following decisions:
- introduction of new progressive production technologies;
- development typical processes and templates;
- motivation and material incentives for shop workers to economical and rational use raw materials.
Sales of products require the implementation of the following necessary measures:
- search for distribution channels that provide the shortest path from the supplier to the buyer;
- direct contacts with the end user, bypassing intermediaries (for example, own distribution networks).
What is included
Working capital includes inventories, the structure of which can be described as follows:
- raw materials and materials;
- semi-finished products and units of products purchased from third-party suppliers;
- fuel resources;
- packaging materials and containers;
- spare parts for current repair equipment and production lines;
- cheap tools and items that wear out in less than a calendar year.
Speaking of work in progress, it is worth noting that these can be materials, semi-finished products and other stocks that are released into the production process, but have not yet reached the state of the finished product.
Deferred expenses do not have material and material expression. Despite the fact that they are being implemented at the moment, the effect of them will come only in the future period. So, this category should include:
- development and development of new technologies, as well as product design;
- advance payment for ordered materials, as well as subscription to printed publications, advance payments for communication services, etc.;
- rent for premises or equipment;
- advance payment of taxes and other obligatory payments.
Also at enterprises, one can single out such a category as circulation funds. It:
- finished products, which is stored in a warehouse and has not yet been shipped for shipment to the consumer;
- products sent to the buyer, payment for which has not yet been received on the company's accounts;
- cash at the cash desk or on the current account of the organization, which are intended to pay for services or supplied materials;
- accounts receivable.
Revolving funds and funds
Working capital and working capital are often identified, but they are not the same thing. So, the first ones represent a part of the resources of the enterprise, which are completely exhausted during one production cycle. If we talk about such a category as working capital, it is worth noting that they represent a combination of the first category, as well as available circulation funds.
Rationing of working capital
Rationing of working capital is carried out in order to save them, as well as to rationalize the production process. It includes four successive steps:
- At the preparatory stage, the collection complete information about the production process and material costs. The state of stocks and the cost of each type of material are also studied.
- The organizational stage involves the development and planning of activities that are designed to make the use of working capital more rational.
- On the next step there is an economically justified calculation of standards. It is produced both for individual types of materials, and for each type of production.
- On the final stage Information about decisions taken and established norms communicated to the heads of all departments of the enterprise.
Rationing of working capital is carried out using a number of fundamental principles, among which the following should be highlighted:
- saving raw materials and materials should not be done to the detriment of the production process, as well as timely settlements with suppliers and customers of products (also do not forget about the quality of finished goods, which should not suffer from a decrease in the amount of materials used);
- when determining the standards, the schedules for the supply of materials, as well as their possible losses associated with the imperfection of the production process, must be taken into account (there must always be a certain stock in excess of the norms in the warehouse, which will ensure work in case of interruptions in raw materials);
- establishment of norms and standards regarding the use production stocks should be accompanied by an improvement in technology (in order to use materials more economically, it is worth resorting to installing new technology, which minimizes unauthorized consumption of raw materials);
- the enterprise should develop a system of employee responsibility for non-compliance with the norms and overspending of materials (violation of the rules should be accompanied by the collection of fines).
Working capital is one of the main elements of production, on which effective work enterprises.
revolving funds- this is a part of production assets (a set of objects of labor), which is fully used during one production cycle, while completely or partially changing its consumer form and transferring its value to the cost of the manufactured product. In management practice, working capital includes, and semi-finished products own production, .
To production stocks include stocks of raw materials, basic and auxiliary materials, purchased semi-finished products, fuel, containers, repair parts, low-value and wearing items.
Unfinished production- These are objects of labor that are in industrial processing.
Semi-finished products of own production- this is a part of the objects of labor that have undergone partial processing in a certain division of the enterprise, but need further refinement.
The need of the enterprise for raw materials and other types of material resources is determined by special norms for their costs. These norms of the enterprise are determined independently for specific types of resources. In the limit general view the consumption rate is the maximum allowable cost for the manufacture of a certain type of product. The consumption rate consists of two parts: actively used and unused.
Actively used part a certain type of resource is that part of it that goes directly into ready product(for example, the amount of leather in the manufactured shoes). The unused part of the resource is the forced loss of a particular type of resource. For example, in a shoe factory, these losses consist in the fact that work in progress takes into account objects of labor at a certain production stage, and semi-finished products are taken into account only if this stage is completed.
Future expenses represent current cash costs that will be covered in subsequent periods by .
Ratio different groups working capital at each stage of the production process is characterized by their production and technological structure, and other working capital.
The required amount of normalized working capital is calculated by several methods. The most commonly used method is direct counting, i.e. determine the standards for each of the elements.
The standard of working capital in industrial stocks is defined as the product of the average daily consumption of a certain type of material and the norm of its stock in days.
The company has several types of stocks. We list the main ones:
- transport (necessary for the enterprise to ensure uninterrupted operation during the transportation of materials);
- preparatory (necessary to ensure the operation of the enterprise during the preparation of incoming materials for their further production consumption);
- current (ensures the operation of the enterprise in the period between two deliveries).
The standard of working capital in work in progress is calculated as the product of the average daily volume of output at production cost, the average duration of the production cycle and the cost escalation factor, which has specific calculation features for each particular enterprise.
The standard of working capital in deferred expenses is calculated as the amount of the balance of funds at the beginning of the year and the amount of expenses planned for the next year, minus the amount of subsequent repayment of expenses.
The standard of working capital in the balance of finished products is determined at each enterprise, taking into account its specifics as required amount products to be kept in stock.
The total standard of working capital of the enterprise is calculated as the sum of the standards for individual elements.
The efficiency of the use of working capital can be measured by several indicators of turnover, for example, as the ratio of the cost of goods sold at current prices for a certain period to the average balance of working capital for the same period.
The means of labor (machines, equipment, buildings, vehicles) together with the objects of labor (raw materials, materials, semi-finished products, fuel) form the means of production. Expressed in value terms, the means of production are the production assets of enterprises. Distinguish between fixed and working capital.
The main production assets are the means of labor involved in the production process for a long time and retaining their natural form. Their cost is transferred to the finished product in parts, as the consumer value is lost.
Circulating assets are those means of production that are entirely consumed in each new production cycle, fully transfer their value to the finished product and do not retain their natural form during the production process.
Along with production, there are non-productive fixed assets - social property. These are residential buildings, children's and sports institutions, canteens, recreation centers and other objects of cultural and community services for workers that are on the balance sheet of enterprises and do not have a direct impact on the production process.
revolving funds- this is an obligatory element of the production process, the main part of the cost of production. The lower the consumption of raw materials, materials, fuel and energy per unit of output, the more economically the labor expended on their extraction and production is spent, the cheaper the product. The presence of an enterprise with sufficient working capital is a necessary prerequisite for its normal functioning in a market economy.
The material elements of circulating assets in the process of labor undergo changes in their natural form and physico-chemical properties. They lose their use value as they are consumed in production. New use-value arises in the form of products worked out from them, including those instruments of labor whose service life is less than one year.
Revolving production assets consist of three parts:
- production stocks;
- work in progress and semi-finished products of own production;
- deferred expenses.
Productive reserves - these are objects of labor prepared for launching into the production process; they consist of raw materials, basic and auxiliary materials, fuel, fuel, purchased semi-finished products and components, containers and packaging materials, spare parts for the repair of fixed assets.
Work in progress and semi-finished products of our own productioncooking- these are objects of labor that have entered the production process: materials, parts, assemblies and products that are in the process of processing or assembly, as well as semi-finished products of their own manufacture, not completely finished by production in some workshops of the enterprise and subject to further processing in other workshops of the same enterprise.
Future expenses- these are intangible elements of working capital, including the costs of preparing and developing new products that are produced in a given period (quarter, year), but are related to products of a future period (for example, costs for designing and developing technology for new types of products, for rearranging equipment and etc.)
The ratio between individual groups, elements of revolving funds and their total volume, expressed in shares or percentages, is called the structure of revolving funds. It is formed under the influence of a number of factors: the nature and form of organization of production, the type of production, the duration of the technological cycle, the conditions for the supply of fuel and raw materials, etc.
Circulating production assets in their movement are also connected with circulation funds, serving the area of circulation. Circulation funds include finished products in warehouses, goods in transit, cash and funds in settlements with consumers of products, in particular accounts receivable.
Common in the structure of working capital of various enterprises and organizations is the predominance of funds placed in the sphere of production. They account for more than 70% of all working capital.
1) Indicators of the intensity of use of fixed assets
2) Indicators of the use of production areas and facilities
3) Indicators of capital productivity of fixed assets and the rate of return
4) All answers are correct.
5) There is no correct answer
22. What is included in the concept of "revolving funds of the enterprise"?
1)Basic and auxiliary materials, semi-finished products own production, purchased semi-finished products, components
2) Part of the means of production that participate in the production cycle once and fully transfer their value to the cost of manufactured products
3) Means of production that repeatedly participate in the production process and transfer their value to the cost of products
4) Tools of labor that repeatedly participate in the production cycle and transfer their value to the cost of finished products not immediately, but in parts, as they wear out
5) Items of labor necessary for the manufacture of products
23. What material and material elements are included in the composition of the working capital of the enterprise?
1) Inventories of raw materials, materials, semi-finished products, purchased products, spare parts, fuel, work in progress, deferred expenses
2) Machine tools, units, fixtures, containers, racks
3) Finished products, cash on hand, on the current account of the enterprise
4) Profit of the enterprise, debt to suppliers
5) There is no correct answer
24. What is minimum stock?
1) The amount of stock at which it is necessary to place an order for the purchase of a new batch
2) The amount of stock, taking into account random deviations in delivery times and consumption volume
3) The optimal size of the delivery lot
5) There is no correct answer
25. What determines the inventory turnover ratio for a certain period?
1)From starting and ending stocks
2)From average stock
3) From the cost of goods sold and the average stock
4) From all of the above
5) There is no correct answer
26. What is working capital?
1) Part of the capital of the enterprise, which is modified in the production cycle and the exchange cycle and acts in the form of inventories, receivables, cash and securities
2) Net asset value of an individual or legal entity minus the amount of liabilities
3) Part of the capital of the enterprise, which is a set of material and material elements of long-term functioning
4) Part of the advanced capital spent on the purchase of objects of labor
5) There is no correct answer
27. Which of the following applies to circulation funds?
1) Material resources of an enterprise, industry
2) Vehicles enterprises, production buildings, structures
3) Finished products, products shipped, on the way, cash in shares, on a current account, at the cash desk, all types of debt
4) Profit
5) There is no correct answer
28. Which of the following is included in the company's working capital?
1) Stocks of materials, spare parts, fuel, finished products in stock
2) Working capital and circulation funds
3) Work in progress, finished goods in stock
4) Workshop equipment, finished products in stock
5) Inventories, work in progress, prepaid expenses
29. Which of the following applies to work in progress?
1) Items of labor that have not yet entered the production process
2) Items of labor that have already entered the production process, but are still being processed
3) Items of labor that are at the enterprise in certain size ensuring the continuity of the production cycle
4) The costs associated with the preparation of the production of new types of products and their development
5) There is no correct answer
30. What characterizes the turnover ratio of working capital?
1) The level of technical equipment of labor
2) The intensity of the use of working capital
3) Average duration of one revolution
4) The size of sales per 1 rub. production assets
5) There is no correct answer
31. What indicator characterizes the material consumption of products?
1) Technical level of production
2) The total weight of materials for the manufacture of one product
3) Norms of consumption of materials for manufacturing
products
4) Economical use of materials
5) There is no correct answer
32. What indicators characterize the effectiveness of funds?
1) Profit, profitability of production
2) Capital productivity, capital intensity of products, capital-labor ratio
3) Turnover ratio, average duration of one turnover
4) The level of return on working capital
5) There is no correct answer
33. What stage do current assets go through in their movement?
1) Cash
2)Productivity
3) Commodity
4) All of the above
5) There is no correct answer
34. Which of the following does not belong to the category of workers?
1)Working
2) Employees
3) Repairman
4) All answers are correct
5) There is no correct answer
35. What is a profession?
1) Genus labor activity requiring special training and being a source of livelihood
2) Specialty, which is a source of livelihood
3) Any work that an employee can perform
4) All answers are correct
5) There is no correct answer
36. What individuals are workers?
1) Doing work
2) Directly engaged in the production of labor products
3) Chiefs
4) All answers are correct
5) There is no correct answer
37. Which workers are classified as employees?
1) Mainly mental labor, providing management of the production of labor products
2) Being in the service of the owner of the enterprise
3) Laborers
4) All answers are correct
5) There is no correct answer
38. Which of the following positions do not belong to the category "head"?
1) Director
2) Deputy directors
3) Chief specialists
4) Senior engineers
5) Heads of shops
39. What is the headcount?
1) The number of personnel according to the list
2) The number of personnel according to the list on a certain date, taking into account those hired and dismissed on this date
3) The number of employees who come to work during the month
4) All answers are correct
5) There is no correct answer
40. How is the overall turnover rate determined?
1) The ratio of the total number of employees hired and retired during the reporting period to average headcount
2) The ratio of the total number of employees accepted and retired for the reporting period to the payroll
3) This is the total number of received
4) All answers are correct
5) There is no correct answer
41. What is labor productivity?
1) Production output per unit of time
2) Labor costs per unit of output
3) The degree of fruitful activity of people, determined by the indicators of output and labor intensity
4) All answers are correct
5) There is no correct answer
42. What is working out?
1) Labor costs for output
2) The total number of products manufactured by the enterprise
3) The cost of raw materials for output
4) All answers are correct
5) There is no correct answer
43. The growth of which indicator stimulates wage, which is a form of remuneration for work?
1) Productivity
2) return on assets
3)Material capacity
4) All answers are correct
5) There is no correct answer
Loading...