/ / What is the gross product of the company?

What is the gross output of the company

Any commercial structure is engagedmaking a profit. In any case, such a formulation is very often found in the statutory documents of legal entities. Profit is calculated as the difference between income and expenses. The system of economic analysis contains various indicators on the basis of which the current activity of the company is monitored. They are natural and calculated. Among these indicators is gross output, labor productivity, profitability of production and many others.

Companies that are engaged in productiongoods, it is necessary to constantly monitor the market. On the one hand, you need to have information about the quality of the goods that are produced by competitors. About what requirements and wishes for product quality are expressed by consumers. On the other hand, it is necessary to be aware of the technical policy pursued by suppliers of raw materials, materials and components. Replacing any component in a complex technical product can affect its performance and cost. And such an indicator as gross output is always subject to review by managers and technicians.

Focusing on market demand, leadershipThe company develops a production program for a certain period. Once, in the conditions of planned housekeeping, such programs were drawn up for five years. At the same time, the five-year plan developed for annual assignments. Today, a common approach is not observed, and each company organizes its activities in its own way. It often happens that you want to "throw on the market" a test batch of products. These can be televisions or washing machines, or cars. All costs associated with the production of this batch are taken into account separately. And such an indicator as gross output, including.

В производстве технически сложных изделий A large number of different services and specialists are involved. From the design to the packaging of the finished copy. In order for a washing machine to make life easier for many hundreds of thousands of people, designers and logisticians show their intellectual abilities and capabilities of modern technologies. Materials and components are delivered to assembly lines from different parts of the world. And all this set is subject to strict accounting. After all, gross output is the sum of all finished products that are transferred to the warehouse, and those that are still in the production process. In this case, it is necessary to clarify that the account is maintained in monetary terms.

Experienced economists and managers in evaluatingproduction efficiency, as a rule, are interested in two or three indicators. After all, gross output, the formula of which is very simple, can generally describe the profitability of a company. It shows the quality of management. With high quality management and the appropriate level of technological culture, gross output should be equal to marketable. In other words, if the materials and components were prepared for the production of, say, two hundred washing machines, then after their final assembly in the warehouse there should not be a single unused part.

Разумеется, в реальных условиях таких результатов only leading companies in their manufacturing sector are seeking. As practice shows, collecting the same washing machines, logistics specialists make an excess stock of particularly complex nodes. For example, for the production of ten cars, they order eleven electric motors. Such a reserve in the amount of 10% of the required amount is considered quite normal. However, it is reflected in the accounting documents as a freezing of working capital. Washing machines of this type are no longer planned to be released, and the extra engine will have to be written off as losses.