How To Calculate The Efficiency Of An Enterprise

Table of contents:

How To Calculate The Efficiency Of An Enterprise
How To Calculate The Efficiency Of An Enterprise

Video: How To Calculate The Efficiency Of An Enterprise

Video: How To Calculate The Efficiency Of An Enterprise
Video: How to calculate Efficiency and Utilization 2024, December
Anonim

An enterprise can be considered effective if it not only pays for itself, but also makes a profit. The higher the production results and the lower the costs, the more efficient the company is.

How to calculate the efficiency of an enterprise
How to calculate the efficiency of an enterprise

Instructions

Step 1

Calculate the costs of your products. This includes expenses for basic materials, salaries for employees, rent for premises or utilities. Also, the cost item includes transportation and overhead costs of the enterprise, mandatory taxes and fees. Overhead costs include the cost of advertising, modernization of production, the introduction of new technologies, etc. Calculate for a month or a year.

Step 2

Calculate the profit of your company for the same period. The income of the enterprise is provided by the sale of manufactured products. The profit is made up of the amount received from the sale of products produced during the billing period, minus the amount of costs for the production of the sold goods. The greater the profit received by the company from the sale of products in relation to the costs of its production, the higher its efficiency.

Step 3

The introduction of new technologies and modernization of production increase costs. But, at the same time, these costs affect the improvement of product quality, increase labor productivity, resource conservation and, as a result, increase sales and enterprise efficiency. Consider the effectiveness of certain areas aimed at improving product quality and increasing sales. For example, how effective is this or that technology, how much the productivity of the shift operation increases, etc. Important factors affecting the efficiency of the enterprise are also the policy adopted in the company, the rational use of attracted investments. Of great importance is the activity of the marketing service, which deals with the study of supply and demand, as well as implements the tactics of behavior and increases the competitiveness of the enterprise in the market.

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