Theme 13. Economic efficiency of production and profit of firm

1. Essence and value of economic efficiency of production in modern conditions.

2. Concept of profit of the enterprise. The size of profit and factors influencing its change.

3. Concept of profitability. Profitability level. Calculation of level of the general indicators of profitability.

Tasks:

1. Discussion of the questions;

2. Work with the glossary;

3. Studying of legal acts of the Republic of Kazakhstan: The Tax code of the Republic of Kazakhstan, the budget code of the Republic of Kazakhstan.

4. Tasks

Task 1. The project of reconstruction of plant provides growth of production from 1000 to 3000 products. The second option – construction of new plant in capacity of 2000 units and continue production at operating plant.

Indicators	Operating plant	Reconstruction	New construction
Volume of production, thousand units	1000	3000	2000
Net cost of 1 thousand units, conventional unit	240	180	138
Capital investments, thousand conventional unit	-	900	1100

Task 2. Two options of plant construction have identical capacity - 500000 units in one year.

Options	Net cost of one unit product, conventional unit	The specific capital investment, conventional unit	Distribution of capital investment by years (the end - %)
I	40	100	30:40:20:10
II	41	96	10:20:40:30

Standard payback period of capital investments – 8,3 years. Reduction coefficients: for I year – 1,0; II – 0,93; III – 0,86; IV – 0,79.

To choose option of plant construction without accounting and with the accounting distribution of capital investments by years.

Task 3. To choose the most effective option of realization of capital investments:

	Option 1	Option 2
Annual production, thousand conventional unit	100,0	200,0
Net cost of one unit product, conventional unit	25	10
Capital investments, million conventional unit	20	40
Standard effectiveness coefficient	0,12

5. Creation of structural and logical schemes. Fill in the table:

Form of activity: practical work, discussion, independent activity, research activity.

Methodical recommendations: Preparation for performance of tasks should be begun with studying of recommended literature. To acquire essence of production efficiency, to consider indicators financial stability of the enterprise. The assessment of a training material should be accompanied by concrete examples.

Literature: 1-42.

Theme 14. Investment activity of firm

1. Investment activity of firm. A role and a place of investment in a production activity of firm.

2. Classification of investment.

3. Investment project. Life cycle of the investment project.

4. Methods of an assessment of efficiency of the investment project.

Tasks:

1. Discussion of the questions;

2. Work with the glossary;

3. Studying of legal acts of the Republic of Kazakhstan: State program of industrial and innovative development of the Republic of Kazakhstan till 2014, Program of “Road Map of Business — 2020”, The program of investments attraction, development of special economic zones and stimulation of export of Republic of Kazakhstan for 2010-2014.

4. Solution of exercises:

Exercise 1. Give examples from foreign practice of the organization of investment attraction.

Exercise 2. Using statistical data you must to determine level of foreign investment attraction by Kazakhstan and the Karaganda region.

5. Discussion on the theme

Form of activity: practical work, discussion, independent activity, research activity.

Methodical instructions: Preparation for performance of tasks should be began with studying of recommended literature. Studying of a training material, it is necessary to understand essence of investments and innovations, to define economic efficiency of investments. Studying, it is necessary to familiarize with strategy of industrial and innovative development of Republic of Kazakhstan till 2015 and other state programs.

Literature: 1-42.