Production funds are an important part of production

Production funds are a combination of all the means of labor that can participate in the technological process of production for quite a long time and at the same time retain their original qualities and form. In world practice, the value of fixed assets is gradually transferred to the price of finished products. The magnitude of such displacements will depend on the loss of consumer qualities of the above-described means. In addition, the means of production that take part in each new cycle, and also completely transfer their value to the value of production, are called revolving funds.

It should also be noted the existence of non-productive funds, which are property that has a social purpose. In contrast to the production mentioned include all objects of cultural and consumer services workers. This category is traditionally referred to residential houses, recreation centers and sports facilities, canteens and other buildings that are held on the balance sheet of the organization and have little impact on the production and technological processes of the main production.

Thus, production assets are a collection of objects that can be divided by purpose.

1. Constructions. This group includes various construction projects, treatment facilities, arranging porches and roads.

2. Buildings. It can be buildings in which the main technological process, as well as administrative structures, warehouses, garages, etc., take place.

3. Equipment. This group includes the following items of expenditure, where the production assets are invested: power plants, control and measurement devices, working machines, and computer equipment.

4. Transportation. This category consists of road, railway, horse, water and in-plant vehicles.

5. Transfer constructions. This includes communications and power lines, cable inserts, various inputs and transitions of electrical networks.

6. Tools. Can be represented by the whole range of tools of manual labor.

7. Working cattle. Production funds are not only horse-drawn vehicles, but also animals that also participate in the technological process, such as horses, donkeys and camels.

8. Deductions to improve the state of soil cover.

9. Household equipment. It consists of items of economic and office use, for example, cabinets, tables, safes.

10. Landscaping of territories. Perennial plantations in the form of shrubs and trees around and on the site itself.

11. Production inventory.

12. Other.

There are also different indicators of production assets. Three factors are traditionally related to them: capital productivity, capital ratio and capital adequacy ratio.

The detailed composition of production assets is compiled for each organization separately, depending on the type and nature of the work done on it, as well as the type of output.