Vocabulary About Law School

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In the simplified look the profit — is a difference between a gross and distribution costs of the enterprise. It is accepted to call such profit accounting (gross), it reflects financial result of concrete activity of the enterprise. However, as we know, not all expenses of trade enterprise join in distribution costs.

Coefficients of growth of this or that indicator are estimated by their consecutive ratio. Intensive development of trade enterprise can be characterized not only growth of commodity turnover and profit, but also increase of labor productivity of trade workers, increase in the capital.

Along with indicators of commodity turnover, the capital, the fixed and current assets for calculation of level of profitability (­ also other indicators are applied: distribution costs, a floor space, number of the personnel, each of which a certain aspect of results of activity ­ the enterprises.

In the conditions of market economy value of activity for the purpose of receiving the maximum profit for satisfaction of material and social requirements of and production development of the enterprise increases. At an of volume of purchase of these or those goods and opportunities of its sale partners (suppliers and the trade enterprise have to count surely advantage of commercial transaction, i.e. the of receiving an optimum level and weight arrived.

Profitability of business assets trade a is determined by a ratio of the sum of profit (gross, ) and the average cost of the fixed and material current assets, increased on 100:

At a size of profit it is possible to apply a method of the analysis of economic efficiency of economic activity to identification of extent of influence of this or that factor. Thus set of the mutually influencing factors join the indicators characterizing resources, expenses and results. Expenses arise during purposeful consumption of resources. It is possible to tell that resources through expenses in the end results of an economic.