2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Production assets are the totality of all means of labor that can participate in the technological process of production for a sufficiently long time and retain their original qualities and form. In world practice, the cost of fixed assets is gradually transferred to the price of finished products. The magnitude of such movements will depend on the loss of consumer qualities of the above funds. In addition, the means of production, which take part in each new cycle, and also completely transfer their value to the cost of production, are called working capital.
It should also be noted the existence of non-productive funds, which are property with a social purpose. In contrast to production, these include all objects of cultural and consumer services for workers. This category traditionally includes residential buildings, recreation centers and sports facilities, canteens and other buildings that are on the balance sheet of the organization and have little effect on the production and technological processes of the main production.
Thus, production assets are a collection of objects that can be divided according to purpose.
1. Structures. This group includes various construction projects, treatment facilities, organization of entrances and roads.
2. Building. These can be buildings in which the main technological process takes place, as well as administrative buildings, warehouses, garages, etc.
3. Equipment. This group includes the following items of expenditure where production funds are invested: these are power plants, control and measurement devices, working machines, and computer equipment.
4. Transport. This category consists of road, rail, horse-drawn, water and in-plant vehicles.
5. transfer structures. This includes communication and power lines, cable inserts, various inputs and transitions of electrical networks.
6. Tools. Can be represented by the entire range of hand tools.
7. Working cattle. Production assets are not only horse-drawn vehicles, but also animals that also take part in the technological process, such as horses, donkeys and camels.
8. Deductions for improving the condition of soil cover.
9. Household inventory. Consists of household and office items, such as cabinets, tables, safes.
10. Landscaping of territories. Perennial plantations in the form of shrubs andtrees around and on the territory of the enterprise.
11. Production inventory.
12. Other.
There are also various indicators of production assets. These traditionally include three coefficients: capital productivity, capital intensity and capital-labor ratio.
The detailed composition of production assets is compiled for each organization separately, depending on the type and nature of the work performed on it, as well as the type of products produced.
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