The concept and essence of profit

In the process of activity of any economic entity, the formation of its income and expenses takes place. It is they who influence the financial results of the organization's activities, determining the level of profit received or the amount of loss incurred.

Remark 1

Generally speaking, profit is the difference between an organization's income and expenses. However, there are other approaches to defining its essence.

Profit is often considered as part of the proceeds remaining after reimbursement of all costs of production and marketing of products. At the same time, profit is the receipt of benefits from the use of factors of production (labor, land, capital). The main characteristics of profit are shown in Figure 1.

Figure 1. Essential characteristics of profit. Author24 - online exchange of student papers

Profit is one of the most important criteria economic security enterprises. Its presence makes it possible to ensure reimbursement of costs incurred, timely make settlements with contractors and the budget, ensure the filling and development of the personnel component, thereby ensuring a normal reproduction process.

In essence, profit is nothing more than the main estimated indicator of financial economic activity economic entity. Its value is always to be measured in value form, that is, in monetary units, be it Russian rubles, US dollars, pounds sterling, etc.

Remark 2

Distinctive feature profit as an internal source of formation financial resources enterprise favors the extended nature of its reproduction in conditions of successful management.

Types of profit

Currently, profit as an economic category is subject to multiple classifications on various grounds. In other words, there are many types of it (Figure 2).

If we consider the order of formation of profit as a classification feature, then we can distinguish the following types of it.

Gross profit, which is the difference between sales revenue and cost of sales.

Marginal income or profit from sales, reflecting the excess of sales proceeds over cost, selling and administrative expenses.

Profit before tax, which is the taxable base for calculating income tax. Its value is defined as the difference between operating and non-operating income and expenses.

Net profit- final financial results activities of an economic entity, defined as the difference between profit before tax and income tax.

Depending on the source of formation, profit is divided into three types:

1. profit received by the organization as a result of the sale of products and services;
2. profit received by the organization through the sale and leasing of real estate;
3. non-operating profit, which is formed as a result of activities not related to the sale and sale of goods and services.

Based on the types of activities that directly generate income, they allocate operating profit (profit received from ordinary activities), profit from financial and investment activities. As a rule, the net profit of the enterprise is formed mainly due to operating profit.

Depending on the nature of the use of profit, it is customary to allocate retained (capitalized) profit and profit directed to the payment of dividends (consumed). In the first case, the profit remains within the business entity and is directed to further development its activities, and in the second - is withdrawn outside the organization in the form of dividends to its owners (owners).

Finally, depending on the frequency of its receipt, profit can be regular and extraordinary, that is, received on an ongoing basis and one-time.

Forms of profit

In economics, it is customary to distinguish two main forms of profit:

• accounting profit;
• economic profit.

Let's consider their essence and features in more detail.

Under the accounting profit in the economy, it is customary to understand the amount of total revenue received by the manufacturer, minus the external costs incurred by him. External costs, in this case, represent the amount of cash costs incurred by the manufacturer to the suppliers. In other words, it is the difference between the actual income received and the actual expenses incurred.

The essence of economic profit is much broader. In fact, it represents accounting profit minus internal costs, that is, those costs that were incurred in the course of independent use of their own resources.

Since explicit costs are identical to accounting ones, it is customary to talk about the excess of accounting profit over economic profit by the amount of implicit costs. The general criterion for the success of entrepreneurial activity is economic profit.

Remark 3

In addition, in economic theory allocate normal profit. Otherwise, it is called zero economic profit. Normal profit takes place in cases where the volume of total revenue is identical to the volume total costs, both explicit and implicit

Evidence of the well-being of an economic entity is precisely a positive accounting profit. In the case when there is only a normal profit, it is customary to say that the business is no worse than the average for the economy. Then, when there is a positive economic profit, we can say that the organization effectively manages its own resources. Thus, it is positive economic profit that should be considered as the most accurate indicator of the effectiveness of the financial and economic activities of an economic entity.

One way or another, profit, regardless of its type and form, is the main indicator of the effectiveness of the financial and economic activities of the enterprise. Its presence indicates that the income received by the organization exceeds its expenses.

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Introduction

The relevance of the topic lies in the fact that profit is the income of the company, acting as an increase in capital employed.

In a competitive market economy, profit performs three functions: a source of production development, because part of the profit is invested in the expansion and modernization of production, training and retraining of personnel, bonuses to workers; production incentive, encouraging the entrepreneur to search for new, non-traditional solutions in the production and sale of products; a guideline for the expedient distribution of resources, since it shows which industry should be developed and which should be reduced.

The aim of this work is to study theoretical foundations and the economic essence of profit, to study its forms and significance in a market economy.

To achieve the goal, the following tasks were solved:

The study of the theoretical foundations of profit;

To study the functions of profit and its role in a market economy

Analysis of the theory of profit.

The object of the study is profit and its forms in a market economy.

SECTION 1. THE ESSENCE OF PROFIT AND ITS SIGNIFICANCE

1.1 The concept of profit, functions, forms and types of profit

The basis of the market mechanism is the economic indicators necessary for planning and objective assessment of the production and economic activities of the enterprise, the formation and use of special funds, the comparison of costs and results at individual stages of recovery. production process. In the context of the transition to a market economy, the main role in the system economic indicators plays profit.

Profit is a measure of the financial performance of a firm. Profit is calculated simply: it is the difference between the revenue for the sold product or service and the cost of producing the product or providing the service. Therefore, profit should not be confused with income. Income is the proceeds, part of which will go to pay taxes or pay salaries. And the profit settles on the bank account of firm. Profit is the final financial result that characterizes the production and economic activities of the entire enterprise, that is, it forms the basis economic development enterprises. Profit growth creates a financial basis for self-financing of the enterprise's activities, carrying out expanded reproduction. Due to it, part of the obligations to the budget, banks and other enterprises are fulfilled. Thus, profit becomes the most important for assessing the production and financial activities of the enterprise. It characterizes the estimates of his business activity and financial well-being.

Due to deductions from profits to the budget, the bulk of the financial resources of the state, regional and local authorities are formed, and the pace of economic development of the country, individual regions, the increase in social wealth and, ultimately, the increase in the living standards of the population largely depend on their increase. Profit is the difference between the sum of income and losses received from different business transactions. That is why it characterizes the final financial result of the activities of enterprises.

Since the main part of the profit of the enterprise is received from the sale of manufactured products, the amount of profit is under the interaction of numerous factors: changes in the volume, assortment, quality, structure of manufactured and sold products, the cost of individual products, the price level, the efficiency of the use of production resources.

In addition, it is influenced by compliance with contractual obligations, the state of settlements between suppliers and buyers, etc. Deductions to the budget are made from profits, and interest on bank loans is paid.

The main purpose of profit in modern economic conditions is a reflection of the effectiveness of the production and marketing activities of the enterprise. This is due to the fact that the amount of profit should reflect the correspondence of the individual costs of the enterprise associated with the production and sale of its products and acting in the form of cost, socially necessary costs, an indirect expression of which should be the price of the product. The increase in profits in the conditions of stable wholesale prices indicates a decrease in the individual costs of the enterprise for the production and sale of products. In modern conditions, the importance of profit as an object of distribution, created in the field of material production of net income between enterprises and the state, is increasing. various industries national economy and enterprises of the same industry, between the sphere of material production and the non-productive sphere, between enterprises and its employees.

The work of the enterprise in the transition to a market economy is associated with an increase in the stimulating role of profit. The use of profit as the main estimated indicator contributes to the growth of production and sales, improving its quality, and improving the use of available production resources.

Thus, profit plays a decisive role in stimulating a further increase in production efficiency, strengthening the material interest of workers in achieving high performance results of their enterprise. Further strengthening of the distributive and stimulating role of profit is associated with the improvement of the mechanism for its distribution.

However, profit cannot be considered as the only and universal indicator of production efficiency.

If the growth rate of cost indicators exceeds the growth rate of production of specific types of products in physical terms, there is a decrease in the efficiency of the use of production resources per unit of its useful effect. This finds expression in the increase in material intensity, labor intensity, wage intensity, capital intensity and, ultimately, the unit cost of specific types of products in natural terms. The value and growth rate of profits do not fully reflect the change in the volume and efficiency of the use of fixed assets and working capital.

Additional profit can be obtained by increasing the volume production assets and reduce the efficiency of their use.

The change in economic indicators for any time period occurs under the influence of many different factors. The variety of factors affecting profits requires their classification, which at the same time is important for determining the main directions, searching for reserves to improve the efficiency of management.

Factors affecting profit can be classified according to different criteria. So distinguish external and internal factors. Internal factors include factors that depend on the activities of the enterprise itself and characterize various aspects of the work of this team. External factors include factors that do not depend on the activities of the enterprise itself, but some of them can have a significant impact on the growth rate of profits and profitability of production.

Such success requires knowledge of the factors that determine the profit of the enterprise.

Let's take a look at the main of these factors.

Prices for manufactured products. Since the company's revenue is directly dependent on prices, an increase in prices implies an increase in profits, and vice versa. It follows that it is important for an entrepreneur to organize the production of such goods, the prices for which are quite high on the market. It is also possible to organize the production of some new product that is not yet on the market. In this case, its manufacturer will have no competitors, and you can install
monopoly high price and monopoly profit.

Optimal production volume. At a given level of penalties for a particular product, the revenue depends on the amount of produced and sold products, and the more it is produced, the greater the profit. But we already know that at certain levels of production, marginal cost begins to rise, so that maximizing profit requires taking into account the equality of prices with marginal cost.

Enterprise costs. The lower the costs at given market prices and output, the higher the profit, and vice versa.

Costs depend on a number of factors:

a) prices for factors of production, the costs of which are included in the costs of the enterprise;

b) the efficiency of production factors, production technology as a way of using factors;

c) organization of production and management. The optimality of production volumes, the degree of workload of factors depend on this.
production, their correspondence to each other, the return received from them;

d) cost structures: the ratio of fixed and variable costs, costs of fixed and circulating funds for their active and passive parts. The turnover of funds and the profit received depend on this.

These factors affect profit not directly, but through the volume of products sold and the cost, therefore, in order to identify the final financial result, it is necessary to compare the cost of the volume of products sold and the cost of costs and resources used in production.

The noted profit factors can be divided into internal and external. Internal are in the enterprise. They are connected with the organization of production, its management, stimulation of the efficient work of workers, optimization of production factors and production volumes - all that characterizes the organizational and managerial talent of entrepreneurs.

External factors are outside the enterprise and characterize the state of the markets for the factors of production of the corresponding product and the markets for these products themselves. The use of such factors requires special entrepreneurial abilities: the ability to find and acquire relatively inexpensive but effective production factors, organize a stable supply of raw materials, auxiliary materials, attract qualified workers, etc. It is also important to choose the product for production at the enterprise that will be in steady demand, to be able to attract buyers to your product, to anticipate possible changes in the markets of both the factor of production and the products produced.

It should be borne in mind that external factors may change, including in a direction unfavorable for the enterprise. So profit appears as a form of reward for entrepreneurial activity in conditions of market uncertainty.

In turn, internal factors are divided into production and non-production. Non-production factors are mainly related to commercial, environmental, claims and other similar activities of the enterprise, and production factors reflect the presence and use of the main elements of the production process involved in generating profits - these are means of labor, objects of labor and labor itself.

For each of these elements, groups of extensive and intensive factors are distinguished.

Extensive factors include factors that reflect the volume of production resources (for example, changes in the number of employees, the cost of fixed assets), their use over time (changes in working hours, equipment shift ratio, etc.), as well as non-productive use of resources (cost of materials for marriage , losses due to waste).

Intensive factors include factors that reflect the efficiency of resource use or contribute to this (for example, advanced training of workers, equipment productivity, the introduction of advanced technologies).

In progress production activities enterprises associated with the production, sale of products and profit, these factors are closely interconnected and dependent.

Primary factors of production affect profit through a system of generalizing factor indicators of a higher order. These indicators reflect, on the one hand, the volume and efficiency of the use of their consumed part involved in the formation of the cost.

Thus, we can conclude that the same elements of the production process, namely the means of labor, objects of labor and labor, are considered, on the one hand, as the main primary factors for increasing the volume industrial products, and on the other - as the main primary factors that determine production costs.

Since profit is the difference between the volume of production and its cost, its size and growth rate depend on the same three primary factors of production that affect profit through the system of indicators of industrial output and production costs.

Profit = Revenue - Revenue

The final financial result of the economic and production activities of the enterprise is profit. Two funds are formed from the profit: the Consumption Fund and the Accumulation Fund. The profit is spent on the formation of funds that will be used in the alternative.

1) profit characterizes the efficiency of the enterprise;

2) the distributive function is to create funds of funds that provide financing for the programs and strategies adopted for implementation, maintain an optimal capital structure, and minimize the risk of bankruptcy;

3) the stimulating function is the main source of equity growth;

4) profit provides access to the world level of prestige;

5) profit is subject to taxation

In accordance with the financial statements, the following main types of profit are distinguished:

a) gross profit;

b) profit (loss) from sales;

c) profit (loss) before taxes;

d) profit (loss) from ordinary activities;

e) net profit.

Gross profit is defined as the difference between the company's gross income and the total cost of goods sold. Gross Profit/Gross Margin is the difference between Net Sales and Cost of Goods Sold (COGS).

The cost price does not include overhead costs, payroll, taxes, penalties and interest, interest on loans and dividend payments.

It should be borne in mind that Gross profit differs from operating profit (Profit before taxes, interest and penalties, interest on loans).

Net sales income is calculated as follows

§ Net Sales Revenue = Total Sales Revenue -- Cost of Returned Goods and Discounts Granted.

Gross profit is calculated

§ Gross profit = Net sales income -- Cost of goods sold or services sold.

Gross Profit should not be confused with Net Profit

§ Net profit \u003d Gross profit - The amount of operating costs - The amount of taxes, penalties and fines, interest on loans

Cost of goods sold is calculated differently for production and trade.

In general, this indicator reflects the profit on the transaction, without taking into account indirect costs.

For retail Gross profit is revenue less cost of goods sold. For a manufacturer, direct costs are the costs of materials and other consumables to create a product. For example, the cost of electricity to run a machine is often considered a direct cost, while the cost of lighting a machine room is often considered an overhead. Wages can also be direct, if workers are paid the price per unit of goods produced. For this reason, service industries that sell their services with by the hour often treat wages as a direct cost. Profit (loss) from sales is gross profit minus selling, administrative and management expenses.

Gross profit is an important indicator of profitability, but indirect costs must be taken into account when calculating net income.

Profit (loss) before tax is profit from sales less interest expense plus income from investments in securities and unrealized expenses and income. Profit from ordinary activities is determined by subtracting from profit before income tax and other similar payments.

The net profit remaining at the disposal of the company is determined taking into account the implementation of all mandatory payments

There is another classification:

Accounting profit;

Economic (net) profit;

balance profit.

Profit -- the excess in monetary terms of income (revenue from goods and services) over the costs of production and marketing of these goods and services.

This is one of the most important indicators of the financial results of economic activity of business entities (organizations and entrepreneurs), for the sake of which entrepreneurial activity is carried out.

Profit is divided into economic and accounting. The excess of income over costs is the so-called accounting profit, since it reflects the difference between the company's revenue from the sale of products and the cash (actually paid) costs of the company for its production. , accounting profit - profit from entrepreneurial activity, calculated according to accounting documents without taking into account the documented costs of the entrepreneur himself, including lost profits.

For the company, economic profit is important - the excess of the company's income over all the costs incurred by it and possible, but lost. Economic profit (English economic profit)-is the net profit remaining with the company after deducting all costs, including the opportunity cost of distributing the owner's capital. In the case of a negative value of economic profit, the option of leaving the enterprise from the market is considered.

Economic profit differs from accounting profit in that its calculation takes into account the cost of using all long-term and other interest-bearing liabilities, and not just the cost of paying interest on borrowed funds, as is the case when calculating accounting profit. That is, accounting profit exceeds economic profit by the value of opportunity costs or the costs of rejected opportunities. Economic profit serves as a criterion for the efficiency of resource use. Its positive value shows that the company has earned more than is required to cover the cost of the resources used, therefore, additional value has been created for investors, founders.

In the case of the opposite situation, this indicates that the organization was unable to cover the cost of using the attracted resources. Lack of economic profit can cause capital outflow from the enterprise.

From the point of view of evaluating the effectiveness, the Economic Profit Indicator allows you to get a more complete picture of the effectiveness of the use of existing assets by an enterprise, in comparison with the accounting profit indicator, by virtue of the fact that it compares the financial result obtained by a particular enterprise with the result that will ensure its real preservation of invested funds.

Therefore, the indicator of economic profit is more capacious and useful in making a decision by investors about their actions in relation to the company's securities.

When revenue exceeds cost, the financial result indicates a profit. Thus, net income takes the form of profit. Hence, as a financial category, profit is the difference between the proceeds from the sale of products (works, services) minus indirect taxes and the cost of sales (works, services). If the costs exceed the revenue, then the company receives a loss.

In fact, an enterprise may have a profit higher or lower than normal, since the equilibrium in a market economy is relative, and the very position of individual enterprises may change for better or worse. That is why practical economists have to operate with the concept of "balance sheet profit". It is the difference between the company's revenue and its external costs. These costs, as well as the revenues of the enterprise that form the revenue, are reflected in its accounting accounts, and therefore such profit is also called accounting.

The main forms of profit are accounting and economic profit. Profit is usually defined as the difference between gross income and gross costs. The definition of gross income is not difficult (it is the product of the quantity of goods produced and the price of a unit of goods). From the point of view of an accountant, the costs should include the cash costs that the company incurs for the purchase of machinery, equipment, raw materials, materials, for the payment of wages to employees, etc. The firm in this case incurs explicit costs, since it pays this money to economic entities external to it, buys the necessary resources on the market. In other words, explicit or accounting costs include only cash costs. In this regard, accounting profit is the difference between total revenue and explicit (accounting) costs.

In a market economy, economic, risk and functional theories of profit can be distinguished. The first one is based on the theory ultimate performance, according to which capital participates in the production process and provides the same "productive" service as labor, and receives an appropriate share of the social product, equal to the value of the marginal product created by capital - profit. In the risk theory, profit is interpreted as a product of the activity of entrepreneurs in conditions of imperfect competition, which is characterized by risk, uncertainty and the losses caused by them, bankruptcy, unemployment. In this theory, profit is seen as compensation and as a reward for overcoming uncertainty. Supporters of the functional theory consider profit as a reward for the implementation of the functions of innovation, the introduction of scientific and technological progress and for economic services to society. Profits are temporary, constantly appearing and disappearing.

However, according to economic theory, economic costs should include the cost of services of all factors of production, regardless of whether they are bought on the market or are the property of the firm. Any costs, and hence the costs of production, must be considered in terms of the value of alternative opportunities that have to be sacrificed. So, any entrepreneur, choosing the sphere of application of his entrepreneurial abilities, compares alternative options in terms of expected benefits and chooses the most effective option for himself.

Other forms of profit are also used in the market mechanism: gross, balance sheet, normal, marginal, maximum. Gross profit - the total profit of the company from sales and non-operating income. Balance sheet profit - the total amount of profit minus the losses incurred by the company (sales profit plus net non-operating income - fines received minus paid, interest on a loan received minus paid, etc.). Marginal profit is defined as the difference between marginal revenue and marginal cost. This is the profit per additional individual unit of output. For the company, it is a benchmark for increasing production. Maximum profit - the highest profit when comparing gross income and gross costs. Maximum absolute value The firm will earn profits at such a volume of production when gross income exceeds gross costs by the maximum amount.

In a market economy, profit the highest goal management, the functioning of firms - the primary links of microeconomic relations. At the same time, profit is a source of income for the state budget, income for other market participants and the population. Profit performs important functions.

Economists distinguish accounting, distribution and incentive functions of profit. The accounting function of profit is that it is necessary element prices (wholesale price of the enterprise \u003d production cost + + profit). Therefore, like the price as a whole, profit takes into account social necessary costs labor necessary to ensure reproduction, expand its scope, meet social needs (management, defense). It is precisely the reproducible needs that determine the lower, minimum limit of the amount of profit included in the price of each product and service.

Another profit function is distribution. Its essence lies in the fact that with the help of profits, the incomes of all participants in production are formed - enterprises (firms), the state, workers. During the initial distribution of profits, various monetary funds are formed, which, during subsequent use (redistribution), finance the projects of firms and state expenses, other market structures - financial and credit institutions, banks, insurance companies, exchanges; reserve funds are created, etc.

The next profit function is incentive. Profit provides the main economic interest of the company - providing the most complete satisfaction of demand for products and services at prices that generate sufficient income to expand activities and meet personal needs. To obtain sufficient profit, it is necessary to reduce production costs, introduce innovations and technical improvements. Part of the profit is used to stimulate the work of all employees, which contributes to a better organization and an increase in labor productivity.

Profit is a part of the newly created value and is one of the forms of the net income of society, which is formed in the sphere of material production. The enterprise makes a profit after the value embodied in the created product, having completed the stage of circulation, takes the form of money. It is part of the proceeds from the sale of products (works, services), which remains after the deduction of taxes paid from the proceeds and production costs.

* as a target of the enterprise;

* effective performance indicator of the enterprise;

*a source of enterprise development and financing of its activities.

As an estimated indicator, profit characterizes the total efficiency of the use of all resources of the enterprise.

The presence of profit allows you to satisfy the economic interests of the state, enterprises, employees and owners.

The availability of profit to satisfy the economic interests of the state is ensured through the payment of taxes, which the state then uses to solve social problems.

The economic interests of the enterprise are to increase the share of profits remaining at its disposal and directed to its development.

The interests of employees in increasing profits are associated with the creation additional features for their financial incentives.

The owners are also interested in the growth of profits, since the growth of profits means an increase in the resources of their property and an increase in the dividends they receive.

The essence of profit can be considered from different positions. The most common is to consider profit from a functional point of view and from a position of origin.

The founder of the functional approach is the American economist P. Samuelson. He defined profit as the unconditional income from the factors of production; as a reward for entrepreneurial activity, technical innovations and improvements, for the ability to take risks in conditions of uncertainty; as monopolistic income in certain market situations; as an ethical category.

Supporters of the German economic school (F. Hayek, D. Sahal) consider profit from the position of its origin, namely, as a “reward” earned through entrepreneurial initiative; profit "unexpected", received in a favorable market situation and circumstances, recognized by the authority state power or relevant legislation (legalized).

In economic practice, there are many types of profit - nominal, minimum, normal, target, maximum, consolidated, economic, accounting, net, etc. The nominal profit characterizes the actual size of the received profit.

Minimum, normal, maximum profits are associated with different levels of production volume and indicate in which area the enterprise is located (break-even, profitability, unprofitability). The minimum profit is considered to be the one that provides the enterprise with a minimum level of return on invested capital. The value of the minimum level of profitability is taken equal to the average percentage of the bank's rate on deposits that has developed over the study period.

Normal profit is the minimum income or pay required to keep a business in a particular industry.

The maximum profit determines the target setting when planning the activities of the enterprise. Achieving it means reducing production and sales costs to a minimum.

The volume of production that maximizes profit is set at the point at which marginal revenue equals marginal cost.

Consolidated profit - profit, free from financial statements on the activities and financial results of separate parent and subsidiaries. The profitability of using consolidated profit is determined by saving on tax payments and reducing the negative consequences of risky activities.

Economic profit is the difference between revenue (gross income) and economic costs (the sum of explicit and implicit costs).

The economic efficiency of production is the ratio of its final result to the costs of production factors.

At the enterprise level, generalizing performance indicators are:

Profit (gross, from sales of products, from the sale of fixed assets, from non-sales operations, net profit)

Profitability (production, products, equity, fixed capital).

Indicators of the use of fixed assets and working capital (capital productivity, capital intensity, capital-labor ratio, turnover of working capital)

Usage rates labor resources(labor productivity, economy of living labor).

Usage rates material resources(material return, material consumption)

The most important indicator of production efficiency is profit.

Entrepreneurial activity is the activity of citizens aimed at making a profit. This is the immediate goal of the enterprise. But it can make a profit only if it produces products and services that are sold, i.e. satisfy general needs. It is necessary to produce products that satisfy needs at a price acceptable to both the producer and the consumer. This is important only in the case when the enterprise can withstand a certain level of costs, i.e. when the cost of production resources is less than the revenue received. If the company does not fit into such a framework, does not receive profit from its activities, it is forced to declare itself bankrupt.

Profit-income from the use of factors of production (payment for entrepreneurial services, innovation, risk)

Profit characterizes the final financial results of the company and is a source of financing costs for production and social development.

There are two approaches to determining profit:

Accounting - the amount of money that remains at the disposal of the company after repayment of all external obligations to resource suppliers and its own employees.

Economic - the amount of money that remains at the disposal of the company after the repayment of all external obligations and the deduction of the company at its disposal of net profit.

Types of profit.

Gross profit:

Pv. \u003d Pr.p. + Pr.o.f. + P.v.o.

one). profit from product sales

2). profit from the sale of fixed assets

3). profit from non-operating operations

4). profit from the sale of products (defined as the difference between the proceeds from the sale of products (without value added tax and excises) and the costs of production and sale of products)

Ex=B-(VAT+A+I)

Profit from the sale of fixed assets and other property (defined as the difference between the sale price and the initial cost of these funds, increased by the inflation index.)

Profit from non-operating operations (profit that is obtained as a result of equity participation in the activities of other enterprises; from renting out property; income from securities and other transactions.)

Net profit (formed after the payment of taxes and other obligatory payments from the gross profit (contributions to the social employment fund, social insurance fund), and remains at the full disposal of the entrepreneur. It is spent in the joint-stock company to encourage employees, to invest in production and social sphere, for shareholders to receive dividends, etc.)

Accounting profit - the difference between the revenue received and accounting costs (explicit). Its value is identical to the balance sheet profit.

The sources of economic profit are the sale of products, other sales, non-sales operations, innovation, monopoly situation, non-insurable risks (changes in market conditions, tax legislation, the risk associated with the development of new commodity territorial markets, the risk due to the presence of inflationary processes in the national economy) .

Sources of accounting profit are sales of products, other sales, non-operating transactions.

Profit at the enterprise is considered not only as the main goal, but also as the main condition for its business activity. When evaluating the level or change in business activity, a distinction is made between the concepts of expected profit (which may be received in the future as a result of management) and actually received.

With this in mind, the following profit functions are distinguished:

* investment - since the expected profit is the basis for making investment decisions;

* effective - actually received profit evaluates the effectiveness of the enterprise;

* financing - part of the received or expected profit is determined as a source of self-financing of the enterprise;

* incentive - part of the expected or received profit can be used as a source of material remuneration for employees of the enterprise and dividend payments to capital owners.

1.2 Importance of profit in a market economy

In a market economy, the importance of profit is enormous. The disclosure of the essence of profit shows its special place among those existing in a market economy. various forms rewards and a special role in the economy.

If the value of wages, interest and rent is limited to the scope of the relevant factors of production, then the role of profit is all-encompassing, spreading its influence over the entire economy, determining the state of all its spheres.

Let us note the most important points of the role played by profit in a market economy.

1. First of all, its distributive and regulatory role should be noted. Due to differences in profits, there is an intersectoral and territorial movement of resources. They are directed to where they are most needed, since the high profits in the industry are due to insufficient production of goods and due to the excess of demand over supply by high prices. Intersectoral movement of resources leads to the establishment of a relative equilibrium in the factor markets
production and goods produced with their help.

The regulatory role of profit is embedded in the mechanism of motivating the behavior of entrepreneurs. Each of them seeks to find the most profitable area for the application of their forces and capital. Profit acts as the goal and driving motive of commercial calculation, which is the basis of such a search. But for society, such prudent behavior of entrepreneurs means directing resources into production. the right goods for which there is an increased demand. The high profit received from the production of such goods appears in the form of an assessment by society of entrepreneurial efforts, the accuracy of calculation in choosing a field of activity.

The receipt by the enterprise of a normal (average) profit means that its funds are invested where they are needed. Higher profits indicate a greater need for resources in a given industry. And vice versa, low profit or its absence serves as a signal of a mistake made in the choice of the sphere of entrepreneurial activity and the need to transfer resources to other areas.

2. The stimulating role of profit is obvious. It encourages entrepreneurs to the most efficient production and marketing of products. The desire for maximum profit forces enterprises to reduce costs (which means saving resources for society), to increase labor productivity. All this is ensured by the use of more productive equipment, resource-saving technology, qualified work force, improving the organization and management of production. A special incentive creates the possibility of making superprofits, or economic profits. It encourages to reduce the cost of production, improve the quality of manufactured goods, apply the achievements of scientific and technological progress in production. It also forces one to take risks, to produce completely new goods, to apply the latest technologies, which often ensures the priority of the country in some area of ​​production.

It is important to emphasize that in many respects the stimulating role of profit is provided by the residual principle of its formation. As we noted earlier, the net profit of the enterprise is formed as the balance of revenue after reimbursement of costs, payments due on obligations to repay debts and pay taxes.

3. Profit also plays an accounting role, acting as an indicator of the state of production at the enterprise, primarily an indicator of its efficiency.

In economic theory, the assessment of the state of production occurs according to such an indicator as the rate of profit (Np). It is determined by the percentage of profit (P) to the amount of advanced capital (Ka). The rate of return characterizes the degree of increase in the profit of capital (production assets), which is advanced for the production of goods and services. At the same time, the advanced funds (Ka) are made up of the cost of the means of production (K) and the cost of wages (Wp). In this case, the rate of return (Np) appears as the ratio of profit (P) to the initially spent funds, expressed as a percentage

Np \u003d PCa \u003d PC + Zp x 100

In economic practice, the indicator of profitability is widely used. Allocate profitability of production and profitability of products. Economic entity profitability lies in the fact that it shows the amount of profit received per unit of costs. The profitability of production can be calculated using the following formula

Fo-cost of basic production resources;

Fn.ob- the cost of normalized working resources;

Ptot - total profit (balance sheet)

In this case, (R) is defined as the ratio of profit from the sale of products to the costs of its production and sale.

c / c - the cost of a unit of production;

Pr - profit from the sale of products.

Since enterprises produce not one, but several types of goods, it is important for him to know which goods are profitable to produce and which are not. To do this, use the rate of return on products (NRT). It is determined by the ratio of the profit received from the sale of this product (Pt), to the cost of its production (IPT) or to the price of the goods (Pt):

Comparing the profitability rates for the production of various goods, entrepreneurs determine the degree of their profitability and redistribute resources in favor of profitable products. Thus, the intersectoral transfer of capital, which we spoke about earlier, is also possible within the framework of individual enterprises. The overall profitability of production at the enterprise allows you to compare your work with the work of other enterprises and take the necessary measures to improve production.

4. Profit also plays a reproductive role. The net profit remaining at the disposal of the enterprise is usually divided into two parts: distributable and non-distributable. The first part goes to the formation of income, including bonus wages, payment of dividends, and the formation of personal entrepreneurial income. The second part of the profit goes to the formation of funds industrial purpose, including the accumulation fund, through which additional factors of production are acquired and thereby ensured the expanded reproduction of the enterprise.

The state budget also serves as a source of expanded reproduction on the scale of the whole society. The fact that enterprises also take part in the formation of the state budget, paying taxes, including income tax, allows us to note not only the direct, but also the indirect role of profit in reproduction.

5. The foregoing also allows us to speak about social role arrived. Thus, the participation of workers in the distribution of profits has not only economic but also social significance. Part of the retained earnings can be directed to the social needs of the enterprise's employees, say, for the construction of a canteen or a sports hall. On a societal scale, many social services are maintained at the expense of the state budget, in the formation of which the profits of enterprises also take part.

The desire to make a profit directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. For the entrepreneur, profit is a signal indicating where the greatest increase in value can be achieved, creates an incentive to invest in these areas. Losses also play their part. They highlight mistakes and miscalculations in the direction of funds, organization of production and marketing of products.

First, profit is a criterion and indicator of the effectiveness of the enterprise. In other words, the very fact of profitability already indicates efficient operation enterprises. But it is impossible to evaluate all aspects of the enterprise's activity with the help of profit as the only indicator. Such a universal indicator cannot exist. That is why when analyzing the production, economic and financial activities of an enterprise, a system of indicators is used. The value of profit is that it reflects the final financial result. At the same time, the amount of profit and its dynamics are influenced by factors both dependent and independent of the efforts of the enterprise. Practically outside the sphere of influence of the enterprise are market conditions, the level of prices for consumed material and raw materials and fuel and energy resources, depreciation rates. To a certain extent, factors such as the level of prices for products sold and wages depend on the enterprise. The factors that depend on the enterprise include the level of management, the competence of management and managers, the competitiveness of products, the organization of production and labor, its productivity, the state and efficiency of production and financial planning.

Secondly, profit has a stimulating function. Acting as the final financial and economic result of enterprises, profit plays a key role in the market economy. It is assigned the status of a goal, which predetermines the economic behavior of economic entities, the well-being of which depends both on the amount of profit and on the algorithm of its distribution adopted in the national economy, including taxation.

The share of net profit remaining at the disposal of the enterprise, after paying taxes and other obligatory payments, should be sufficient to finance the expansion of production activities, scientific, technical and social development enterprises, material incentives for employees.

Thirdly, profit is a source of formation of budget revenues. various levels. It enters the budgets in the form of taxes, as well as economic sanctions, and is used for various purposes, determined by the expenditure part of the budget and approved by law.

The basis of the enterprise's activity is profit, it is a source of existence and development, the main goal and indicator of performance. The enterprise independently plans the development of its activities, based on the factor of demand for manufactured products, its capabilities and the need for further development. An independently planned indicator is both profit and options and ways to achieve it.

profit economics theory source

Section 1 Conclusions

Profit -- the excess in monetary terms of income (proceeds from the sale of goods and services) over the cost of production or acquisition and marketing of these goods and services.

This is one of the most important indicators of the financial results of economic activity of business entities (organizations and entrepreneurs), for the sake of which entrepreneurial activity is carried out.

Profit is a measure of the financial performance of a firm. Profit is calculated simply: it is the difference between the revenue for the sold product or service and the cost of producing the product or providing the service. Therefore, profit should not be confused with income. Income is the proceeds, part of which will go to pay taxes or pay salaries. And the profit settles on the bank account of firm. Profit is the final financial result that characterizes the production and economic activities of the entire enterprise, that is, it forms the basis for the economic development of the enterprise. Profit growth creates a financial basis for self-financing of the enterprise's activities, carrying out expanded reproduction. Due to it, part of the obligations to the budget, banks and other enterprises are fulfilled. Thus, profit becomes the most important for assessing the production and financial activities of the enterprise. It characterizes the estimates of his business activity and financial well-being.

Profit is divided into economic and accounting. The excess of income over costs is the so-called accounting profit, since it reflects the difference between the company's revenue from the sale of products and the cash (actually paid) costs of the company for its production.

Economic profit is found as the difference between the return on invested capital (the material expression of which is net operating assets) and the weighted average cost of capital multiplied by the amount of invested capital.

Economic profit makes it possible to compare the profitability of the invested capital of an enterprise with the minimum return required to justify the expectations of investors, and also to express the resulting difference in monetary units.

SECTION 2. PROFIT THEORIES

2.1 Objective theories about the source of profit

Objective theories explain the origin of profit by some external causes, one way or another connected with violations of competitive equilibrium.

Conjunctural theories

In market equilibrium, the entire income of the firm is distributed among various factors according to their marginal product. There is no profit or loss involved. If, as a result of some external reasons, the market situation has changed (for example, there has been an increase in demand for a product due to the accidental mention of famous people), which will lead to a change in both price and revenue. However, the prices of factors of production did not change, their productivity also remained unchanged. Thus, there is no reason to pay the owners of factors an income in excess of the previous one. Consequently, the firm has a certain part that did not go to any factor. This is the profit or loss of the firm.

Monopoly

One of the explanations for the appearance of profits is associated with references to the imperfection of competition. Profit is received by the firm as a result of disruption of competitive equilibrium due to dominance in the market with elements of price dictate up to a complete monopoly

Capital

Common in the XVIII-XIX centuries. was the interpretation of "return on capital" as the third component of gross income, along with salary and rent. Economists of that time did not distinguish between explicit and implicit costs and considered profit the surplus received by the capitalist after reimbursement of expenses.

The "return on capital" by A. Smith (1723-1790), N. W. Senior (1790-1864) and J. S. Mill (1806-1873) was divided into interest on invested capital - the "compensation for abstention" of the entrepreneur from spending own capital on current consumption; and on entrepreneurial income -- fees for managing the enterprise and bearing a certain business risk.

The same factors - abstinence, risk, hard work - require a corresponding reward and must receive it from the gross profit. The three parts into which profits can be considered to be divided can be represented as interest on capital, insurance premium and wages for management of the enterprise.

J. G. von Thünen also wrote about the same triad of profits in the 2nd volume of his "Isolated State". However, most authors, even if they mentioned that profit breaks down into interest and entrepreneurial income, considered them, as a rule, together, without making a fundamental difference between them, thus by “profit” they actually mean interest on capital. A quotation from a textbook of political economy popular in pre-revolutionary Russia is characteristic:

Entrepreneurial profit cannot be contrasted with interest on capital; both of these forms of income are branches coming from the same root of the right of ownership of capital and the right of private disposal of capital, and therefore the conditions for their determination are basically homogeneous. Representatives of the classical school and the socialists of the 19th century equated the entrepreneur with the capitalist. The easiest way to explain this is by the fact that in those days the owners and managers of firms were indeed in most cases represented by the same people. However, even before A. Smith, his compatriot R. Cantillon (1680-1734), in his work “An Experience on the Nature of Trade in General” (published in 1759 in a revised form), divided the functions of a capitalist and an entrepreneur, understanding the latter as a person who takes on responsibility (risk) for selling a product or service at an unpredictable price.

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Profit is the result of production and commercial activities firms, the main factor stimulating entrepreneurship. In other words, this is the financial result of the production and economic activities of the organization, which shows its net income. Profit can also be seen as the engine of production. In principle, profit is a fickle phenomenon, since competition is strong in a market economy and the general economic situation is unstable. However, the reasons for the emergence of profit are constantly changing, supplemented, therefore, theoretically, it can still be called a static form.

Profit, in accordance with the role assigned to it in the economy, performs a number of functions.

1. Regulatory. Profit allows you to regulate cash flows, since it is distributed among various funds and directions at the enterprise (reserve, foreign exchange, production development fund, material incentives fund).

2. Stimulating. Any firm in the course of its functioning seeks to strengthen its position in business and in the market, to gain some advantages over competitors and economic profit. All this contributes to its dynamic development. The expectation of economic profit forces the entrepreneur to carefully deal with the issue of organizing production in order to minimize costs, make the most efficient use of limited resources and achieve the greatest return on production factors. To this end, technologies are being improved, the achievements of science and technology are being mastered, which contributes to economic growth firms and the entire national economy.

3. The controlling function is nothing more than a characteristic of the economic effect of the enterprise.

4. The presence of economic profit contributes to the efficient allocation of resources between alternative ways of their application. An important feature of business is the ability to anticipate alternative opportunities and costs. If in a particular industry the profit exceeds the average value, this indicates that there is a high demand for this product, that is, it absolutely meets the needs and desires of consumers. As a result, such a sector of the economy becomes more attractive, and firms will compete for the opportunity to invest capital and resources in it. Through such a movement of resources, the greatest efficiency of the functioning of the economy is achieved.

5. Profit acts as a source of financing for the expansion of the scale of production. Firms that make a profit have the opportunity to conduct continuous production activities. They have an investment reserve and can send it back into production, not only to expand its scale, but also to improve the enterprise, develop new management methods, and use STP products.

From the foregoing, we can conclude that profit not only stimulates the development of entrepreneurship, but also creates real prerequisites for obtaining it in the future and activates the methods of competition. On the one hand, profit characterizes the efficiency of the organization, and on the other hand, it is an economic instrument that causes a stimulating effect. Thus, profit is necessary condition market equilibrium and development of the economy as a whole.

2. Types of profit

Profit- this is an important economic category that determines the quality of the functioning of the organization and the prospects for its further development. The classification of profit implies the following types of it.

1. Profit received from the sale finished products, as well as semi-finished products and the fulfillment of commercial orders. In other words, this is the difference between the full cost of commercial products and the cost of goods and services actually sold.

Pr \u003d P p - cost,

where Р р is the sales price.

2. Balance sheet profit is the total profit that the organization receives from all its production and economic activities. The balance sheet profit is equal to the sum (or difference) of the profit received from the sale and sale of marketable products or the loss received from the sale of other products.

Accordingly, it includes the products of farms that are on the balance sheet of the enterprise and in its ownership. For example, these are utility agriculture, logging enterprises, transport organizations that deliver all necessary resources in each of the company's production unit. This also includes proceeds from the sale of containers, excess stocks of fuel, raw materials, materials and other production assets.

P in the above formula, respectively, is the profit or loss from operations, which, in fact, have nothing to do with production and sales.

These are income received from equity participation with other economic entities in joint ventures (ownership of shares), income from the lease of property, dividends received from the ownership of valuable bonds, bills of exchange and other securities. In addition, this may include fines resulting from violations of labor laws or errors in the conduct of economic and commercial activities.

Therefore, it turns out that in this formula, the elements of profit can stand both with a “+” sign if they bring income to the organization, and with a “-” sign if the company incurs losses instead of profit.

3. Net profit is calculated on the basis of balance sheet profit and taxation rates (profit tax, unified social tax, land tax, property tax, etc.).

4. Consolidated profit is the profit received from the activities and financial results of parent and subsidiaries (affiliates) enterprises. Consolidated financial statements are the combined statements of two or more business entities.

Very often, the analytical method is used to calculate profit. Based on it, the profit in the current year is determined by summing up all possible profits and taking into account the level of profitability of production.

Important factors here are the planned volume of product sales, and various measures to reduce production and marketing costs, as well as an increase in the quality of goods and services and structural changes in the assortment.

Profit calculated in this way is determined by the sum of profit from sales and profit received as a result of an increase in product quality, minus initial losses as a result of innovations and the introduction of new technologies in production.

economic profit- this value exceeding the normal profit, is the difference between the opportunity costs.

The specificity of entrepreneurial activity is manifested only in a progressive, constantly changing economy: the factors that affect the magnitude of supply and demand change, balance the equilibrium in the market, etc. The following signs of economic development can be named:

1) qualitative improvement of the product, the creation of a unique good, new for the consumer. The dynamism of consumer demand requires manufacturers to quickly respond to changes in the external environment and be ready to expand or completely change production and activity orientation under unforeseen circumstances;

2) introduction of new technologies and production methods. Improving production and reconstructing fixed production assets, replacing obsolete equipment with the latest achievements of science and technology, the enterprise thereby takes a course towards increasing the productivity and efficiency of the labor used;

3) the opening of new markets for the sale of the finished product. For its effective development and competitiveness, a company must constantly develop not only new niches of the market in which it sells goods and services, but also new markets through the struggle for quality, gradually expanding its share of influence. This method is called a concentrated growth strategy. However, today in the face of fierce competition and the risk of the organization, it is important to play it safe. In this regard, she can choose new directions of activity. This allows you to significantly reduce dependence on one business unit and the same type of production;

4) the use of new raw materials or factors of production. As you know, the quality of the finished product also depends on the quality of the feedstock, so the introduction of a higher quality resource into production from an economic point of view will certainly have a positive effect;

5) change in the market structure: the establishment of monopoly or its undermining.

In an economy with the above characteristics, entrepreneurs play a large role, and entrepreneurship becomes a factor of production. Thus, economic profit is out of the question in a static economy.

The sources of economic profit are different.

1. economic profit This is a kind of reward for entrepreneurial risk. Risks in the economy are diverse, and to protect themselves from losses, firms resort to insurance. Therefore, the payment for risk is included in the company's costs as costs in the interests of the enterprise. But there are risks that cannot be insured against. They are usually associated with changing market conditions, economic cycles or the provisions of the economic policy of the state, through which it controls the activities of individual firms. In addition, the tastes and preferences of consumers are completely unpredictable, but they determine the scale of production.

2. Innovation Award. Enterprises seek to introduce new technologies into production, improve ways of organizing it, etc. This is due to the desire to reduce costs. However, when developing something new, the company does not have a 100% guarantee that this innovation will be effective at this stage of economic development and will be in demand. Thus, the payment for innovative risk is economic profit, the desire to obtain which pushes the entrepreneur to change.

3. monopoly in the market. The entrepreneur seeks to competitive advantage on the market, i.e. to monopoly power because it will give him a certain confidence in the future and the right to control the situation. Only in this way can he minimize the risk of losses.

Economic nature and types of profit

The process of material production is completed by bringing the finished product to the consumer, i.e. an act of realization and represents the completion of the last stage of the circulation of the means of production, in which the commodity value is again converted into money value.

Revenue is the amount of money received by the company for products sold. It is an economic category, because expresses monetary relations between suppliers and consumers of goods and the main source of formation of the enterprise's own financial resources.

For the purposes of taxation, proceeds from the sale of products (works, services) are determined either as they are paid for (for non-cash payments - as funds for goods (works, services) are received on accounts in bank institutions, and for cash settlements - upon receipt of funds in cash desk), or as the goods are shipped (work is performed, services are rendered) and payment documents are provided to the buyer (customer).

Revenue is formed as a result of: 1) current (main), 2) investment and 3) financial activities of enterprises.

The first acts in the form of proceeds from the sale of products, the second in the form of a financial result from the sale of non-current assets, the sale of securities of other enterprises, and the third - from the placement of bonds and shares of the enterprise among investors.

Sold products are either shipped (accrual method) or paid (cash basis) products, depending on the accounting policy of the enterprise.

In Russia, unlike developed countries, the second method is mainly used, because there are no developed stock and money markets from which it would be possible to attract funds for insurance against non-payments.

Enterprises in the process of financial and economic activities can carry out revenue planning.

There are annual planning, which is effective in a stable economic situation (with a known supply and demand ratio, unchanged tax, credit and other legislation), quarterly and operational, used to control the timeliness of receipt of money for shipped products to the accounts of enterprises.

The total amount of proceeds from core activities includes proceeds from the sale of industrial and non-industrial products.

To determine revenue, it is necessary to know the volume of sales of products in current prices without VAT, excises, trade and marketing discounts and export tariffs.

Revenue is determined based on the volume of work performed and the corresponding rates and tariffs in two ways.

1. The direct counting method, which is based on guaranteed demand and assumes that the entire volume of production falls on a pre-order package. The production plan and volume of production are linked in advance with consumer demand, the required assortment and output structure are known, and appropriate prices are set. In this case, revenue is defined as:

B - revenue; RP - the volume of products sold; C - the price of a unit of production.

At present, these conditions are difficult to fulfill and therefore the second method is used.

2. The calculation method, which is based on the volume of sales, adjusted for input and output balances, allows you to determine revenue as follows:

B \u003d He + T - Ok

B - revenue; He - unsold balances of finished products at the beginning of the planning period; T - commercial products intended for release in the planning period; OK - the balance of unsold finished products at the end of the planning period.

Sales revenue is affected by the following factors depending on the activity of the enterprise:

a) in the field of production - the volume of production, its structure, the range of products, the quality and competitiveness of products, the rhythm of production;

b) in the sphere of circulation - the level of applied prices, timely execution of payment documents, compliance with contractual terms, applicable forms of payment.

Factors that do not depend on the activities of the enterprise include: violation of contractual conditions for the supply of material and technical resources, interruptions in the operation of transport, untimely payment for products due to the insolvency of the buyer.

The receipt of proceeds represents the completion of the circulation of funds, and its use is the beginning of a new circulation.

The proceeds are used to pay the bills of suppliers of raw materials, materials, fuel, energy, purchased semi-finished products, components, spare parts for repairs. Wages are paid from it, depreciation of fixed assets is reimbursed, profit is formed.

The price is the most important factor determining the financial performance of the enterprise.

To set a price, you need:

Collect information for pricing;

Determine the structure of the market;

Find out the phase of market development;

Analyze the impact of production costs on pricing;

Analyze the impact of profit on pricing;

Determine which pricing method will be used;

Estimate inflation expectations.

At present, free prices are mainly used in the Russian Federation, the value of which is determined by supply and demand. The transition to free pricing was accompanied by significant inflationary phenomena. But for a narrow range of goods produced by natural monopolies (energy, transport, etc.), state regulation prices.

Distinguish between wholesale prices (enterprises, industries), selling and retail prices.

The wholesale price of the enterprise includes the full cost and profit of the enterprise. At wholesale prices, products are sold to other enterprises or trade and marketing organizations.

The wholesale price of the industry includes the wholesale price of the enterprise, VAT and excises. At wholesale prices of the industry, products are sold outside the industry. When determining the price, it is advisable to use free prices, which means to which point the buyer is free from shipping costs.

The selling price of the enterprise includes the wholesale price plus the excise tax on excisable goods.

At retail prices, goods are sold to the final consumer - the population. Essence, functions and types of profit, its planning, distribution and use

Profit is the monetary expression of the main part of the savings created by enterprises of any form of ownership. As an economic category, it characterizes the financial result of the entrepreneurial activity of the enterprise and performs reproductive, stimulating and control functions.

Profit is an indicator that most fully reflects the efficiency of production, the volume and quality of manufactured products, the state of labor productivity, and the level of cost. Profit is an important source of expansion of production and other intra-economic needs. Part of the profit is used to provide material incentives to workers and meet their social needs.

The role of profit in the formation of budgetary, off-budgetary and charitable funds is growing.

The amount of profit is formed under the influence of three main factors:

product cost,

Sales volume;

The level of current prices for products sold.

Profit as the final financial result of the activities of enterprises is the difference between the total amount of income and the cost of production and sale of products, taking into account losses from various business operations. It is subject to distribution and use. Distribution is understood as its direction to the budget and according to the articles of use in the enterprise.

There are the following types of profit: profit from sales, gross (balance sheet) profit, profit from non-sales operations, taxable and net profit.

Profit (loss) from sales is defined as the difference between the proceeds from the sale of products in current prices, excluding VAT and excises, and the costs of its production and sale.

Gross profit is subject to taxation when paying income tax and is made up of the financial result from the sale of products (works, services), fixed assets and property of the enterprise and income from non-sales operations, reduced by the costs of these operations.

Profit (loss) from the sale of fixed assets and property of enterprises is determined as the difference between the proceeds from the sale of this property (net of VAT) and the residual value, adjusted for inflation.

The financial result from non-operating operations is defined as income (losses) minus expenses on non-operating activities.

Non-operating income includes: income from equity participation in the activities of other enterprises; interest and dividends on securities owned by the enterprise; income from the rental of property; fines, penalties, fines awarded or recognized by the debtor for violation of business contracts; profit of previous years, revealed in the reporting year; positive foreign exchange differences and income from other operations not directly related to the production and sale of products.

Non-operating expenses include: expenses on canceled production orders; the cost of maintaining mothballed production facilities; losses not compensated by the perpetrators from downtime due to external reasons; losses from the markdown of inventories and finished products; court costs and arbitration costs; awarded or recognized fines, penalties, forfeits for violation of business contracts; losses on writing off receivables for which the limitation period has expired; uncompensated losses from fires, accidents and other emergencies caused by extreme conditions; losses from theft, the perpetrators of which are not identified; negative exchange rate differences and others.

Taxable income is equal to gross profit less:

Contributions to the reserve and other similar funds, the creation of which is provided for by law (until the size of these funds reaches no more than 25% of the statutory fund, but not more than 50% of profit subject to taxation);

Rent payments to the budget;

Income from securities and from equity participation in the activities of other enterprises;

Income from casinos, video salons, etc.;

Profits from insurance activities;

Profits from individual banking operations and transactions;

The exchange rate difference formed as a result of a change in the exchange rate of the ruble in relation to the quoted central bank RF foreign currencies;

Profits from the production and sale of agricultural and hunting products.

All these types of income excluded from gross profit are objects of independent taxation and are excluded from its structure in order to avoid double taxation.

Net profit of the enterprise, i.e. the profit remaining at his disposal, used by him independently and directed to the further development of the enterprise itself and its activities is determined as the difference between taxable profit and the amount of income tax, rent payments, export and import tax. Net profit goes to:

R&D funding;

Work on the development of new technologies and prototypes;

Modernization of equipment;

To replenish own working capital;

Payment of certain types of taxes;

To pay various fines and sanctions;

To replenish various funds.

The distribution of net profit reflects the process of formation of funds and reserves of the enterprise to finance the needs of production and the development of the social sphere.

When studying all aspects of profit, it was revealed that the profit calculated in accounting does not reflect the actual result of economic activity. This led to a distinction between two interrelated concepts: accounting profit and economic profit.

The first is the result of the sale of goods, works, services.

The second is the result of the "work" of capital.

Relationship between accounting and economic profit

Accounting profit + Non-operating changes in the value (valuation) of assets during the reporting period _ Non-operating changes in the value (valuation) of assets in the previous (past) reporting periods+ Non-operating changes in the value (valuation) of assets in future (upcoming) reporting periods = Economic profit

Profit planning

Profit planning - component financial planning and an important area of ​​financial and economic work at the enterprise. Profit is planned separately by type of activity of the enterprise. In modern conditions, it is real to plan not an annual, but a quarterly amount of profit.

The main purpose of profit planning is to determine the ability of the enterprise to finance its needs.

The correct determination of the planned profit depends on the chosen method of its accrual.

Profit planning is carried out by three methods: direct account, analytical and mixed.

The direct counting method means that the amount of planned profit from the sale of marketable products is calculated for each type of product as the difference between the proceeds from the sale of marketable products at current wholesale prices and the planned cost of these products. The profit received for each product is summed up for the whole enterprise. To calculate the total amount of planned profit, it is necessary to add profit from other sales and non-operating income to the profit from the sale of marketable products.

To calculate the planned amount of profit from the sale of marketable products, you can use the following formula:

Prp \u003d Mon + Fri - Pk,

Pr - profit from the sale of products;

Mon - profit in commodity balances at the beginning of the planned year;

Fri - profit from the release of marketable products;

PC - profit in commodity balances at the end of the planned year.

The advantages of the method of direct calculation of profit is that the calculation of profit is based on a direct calculation of the cost of production and proceeds from its sale for each type of product range. This ensures the accuracy of calculations, their simplicity and clarity. The use of the direct calculation method is effective in enterprises with a small range of products. The disadvantage of this method is the cumbersomeness of calculations when large assortment manufactured products.

The analytical method for calculating profit is based on a comparison of indicators for two adjacent periods of time. The profit of the enterprise for the coming year is established on the basis of its profit for the previous year (basic profit), adjusted depending on the action of factors affecting its value. These factors include: sales volume, cost level, prices, tax rates, profitability. The calculation uses the method of elimination (exclusion) of the influence of all other factors, except for the one under consideration.

The analytical method of calculating profit gives a result close to that obtained when calculating profit by the direct account method. Therefore, it is advisable to use it to check the correctness of the direct count. The calculation of profit by the analytical method can be used for economic analysis.

The mixed profit planning method is a combination of the direct counting method with some elements of the analytical method.

The cost of production and sales of products. Product cost.

The costs of production and sale of products are a set of expenses of enterprises expressed in monetary terms for the production and sale of products (works, services). They ensure the continuity of production and create conditions for the sale of products.

In terms of economic content, they express the costs of society, since production is carried out in the interests of society, and products are produced as a directly social product. The costs are different in composition and structure, depending on the sectoral affiliation of enterprises. They are also classified according to the method of attribution to the cost, connection with the volume of production, degree of homogeneity.

Depending on the method of attribution to the cost of production, they are divided into:

Direct related to production certain types products that can be directly and directly included in the cost (raw materials, basic materials, wages of production workers, etc.);

Indirect, related to the production of a variety of products that cannot be attributed to cost a certain kind products (expenses for the maintenance and operation of equipment, repair of buildings, salaries of engineering and technical workers, etc.).

They are included in the cost with special methods, determined by industry guidelines on planning, accounting and costing.

Depending on the relationship of costs with the volume of production, there are:

Semi-fixed costs are expenses whose value does not change significantly with an increase or decrease in the volume of output, as a result of which their relative value per unit of output changes (costs for heating, lighting, salaries of management personnel, depreciation, expenses for administrative and economic needs, etc.)

Conditionally variable costs, the value of which depends on the volume of production, they grow or decrease in accordance with the change in the volume of output (costs of raw materials, basic materials, fuel, basic wages production staff and etc.).

According to the degree of homogeneity, the costs are divided into:

Elementary;

Complex.

The elements have a single economic content, regardless of their purpose. The purpose of grouping by elements is to identify the costs of manufacturing products by their types (material costs, depreciation, etc.). The ratio between the individual cost elements is the cost structure for the production of products.

Complex costs include several elements, and therefore, are heterogeneous in composition. They are united for a certain economic purpose. Such costs are general factory expenses, losses from marriage, expenses for the maintenance and operation of equipment, etc.

All costs for the production and sale of products are the full cost.

The composition of the costs included in the cost of products (works, services) is currently determined by a government decree.

The cost of products (works, services) is valuation used in the production process of products (works, services) natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale.

According to the economic content, the costs included in the cost of products (works, services) are grouped according to following elements: material costs; labor costs; deductions for social needs; depreciation of fixed assets; other costs.

1. Material costs include:

the cost of purchased raw materials and materials, fuel; basic auxiliary materials; components and semi-finished products; container; repair parts; MBP and other costs.

The cost of material resources is the sum of their acquisition prices.

2. Labor costs include: payment of wages; payment of premiums; remuneration based on the results of work for the year; compensatory and incentive payments; price free meals; lump-sum remuneration for years of service; payment study holidays; remuneration of non-staff employees and other payments included in the wage fund.

Labor costs do not include: labor costs in the form of bonuses paid out of special funds; target receipts; material aid; interest-free loans to improve housing conditions; payment additional holidays women raising children; pension supplements; share dividends; subscriptions and purchases of goods for the personal needs of employees; payment for travel to the place of work; payment for vouchers, excursions, travel; other costs incurred at the expense of the profit remaining at the disposal of the enterprise.

3. Social contributions include contributions to the compulsory social insurance fund, Pension Fund, State fund employment of the population (currently abolished), Compulsory Medical Insurance Fund.

4. Depreciation of fixed assets includes depreciation charges for the full restoration of fixed production assets, the amount of which is determined on the basis of their book value and current depreciation rates. If the enterprise operates on a lease basis, then this section provides depreciation charges for full restoration of its own and leased fixed assets.

Other costs include: certain types of taxes; contributions to insurance funds (reserves); rewards for inventions and rationalization proposals; travel expenses; payment for communication services; rental fee; depreciation on intangible assets, deductions to the repair fund, etc.

Literature

1. Abramova M.A., Aleksandrovna L.S. Finance, money turnover and credit. M.: IMPE, 2009.

2. Balabanov A.I., Balabanov I.T. Finance. - St. Petersburg: Publishing house "Peter", 2006.

3. Bolshakov S.V. Financial policy and financial regulation of the transitional economy // Finance. 2008. No. 11.

4. Bulatova A.S. Economics: textbook. M.: Beck. 2004. Ch. 16. S. 260 - 277.

5. Buretin L.N. Market of securities and industrial financial instruments. M., 2000.

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At the level of enterprises, in the conditions of commodity-money relations, income takes the form of profit. By setting the price for the product, selling it to the consumer, the company receives the proceeds from the sale. To identify the financial result, it is necessary to compare revenue with production costs. When revenue exceeds cost, the financial result indicates a profit. When the costs exceed the revenue, the company receives a loss.

1) characterizes the economic effect obtained as a result of the activity of the enterprise;

2) stimulates entrepreneurial activity (the profit remaining at the disposal of the enterprise must be sufficient to finance the expansion of production activities, scientific, technical and social development of the enterprise, material incentives for employees);

3) is one of the sources of formation of budgets of different levels (federal, regional, local); it goes to the budget in the form of taxes.

Types of profit:

1. Balance sheet (gross) profit. Balance sheet profit is the main financial indicator production and economic activities of the enterprise and serves as the basis for all calculations. The amount of balance sheet profit is reflected in quarterly and annual accounting documents (balance sheets). The balance sheet profit of the enterprise is formed from three parts:

1) profit (loss) from the sale of products, performance of work, provision of services; is defined as the difference between the total amount of proceeds from the sale of products (works, services) in wholesale prices excluding VAT and excises and prime cost;

2) profit from the sale of surplus fixed assets and other property of the enterprise, proceeds from the sale of inventory items that are not the result of the production activities of the enterprise (previously acquired materials that turned out to be redundant are not the company needs equipment, etc.);

3) results from the implementation of non-sales operations; in last years they have increased markedly, both in absolute and relative terms; non-operating income and expenses - the results of operations not related to the sale of products or other valuables.

For example:

Non-operating income includes:

Interest on the funds of the enterprise located on settlement, current, deposit and other accounts in banks;

Dividends on shares owned by the company;

Receipt of debts previously written off as uncollectible;

Rent for leased property;

Fines, penalties, forfeits received from partners of the enterprise for violations of the terms of contracts;

Excess inventories identified during the inventory, etc.

Non-operating expenses include:

Fines, penalties, forfeits paid to enterprises (their partners);

Losses from natural disasters;

Losses from writing off uncollectible receivables;

Costs for canceled production orders, etc.

The main part of the enterprise's profit (90% or more) is formed as a result of the sale of marketable products.

2. Taxable income is the calculation base for income tax (24% of taxable income).

It is determined by subtracting from the balance sheet profit the preferential amounts that are not taxed.

The total amount of benefits should not reduce the actual amount of tax, calculated excluding benefits, by more than 50%.

3. Net profit - profit remaining at the disposal of the enterprise after paying taxes and other payments. From it, the enterprise forms an accumulation fund and a consumption fund.

accumulation fund- expenses for capital investments, for the increase and replenishment of working capital (conducting research, environmental measures, expenses for issuing securities, etc.).

consumption fund- expenses for the payment of bonuses, for the provision of material assistance and gifts to employees, interest-free loans, pension supplements and lump sum benefits for retiring labor veterans, compensation payments in connection with the increase in prices in excess of those stipulated by government decisions, etc.

reserve fund designed to cover unforeseen losses, in joint-stock companies created mandatory, at other enterprises - voluntarily.