Means of production - component of the production process

The production process in any industry is accompanied by the use of appropriate means. The means of production are divided into the means of labor and objects of labor, which are used in the production of material goods. Considering the role in the manufacturing process, the necessary means of labor are divided into natural and technical means. Technical means of production are tools of labor, which include machinery, equipment, and tools.

The means of production also consist of general conditions, which include buildings, means of transport, communications and other components of the production infrastructure. The objects of production are elements of the external world, which are used as raw materials and are processed. In this context, the essence of the organization of production has a key role. The means of production transfer the cost to new products in parts at the moment of impact on them. Thanks to modern scientific and technological progress, the tools of labor have been transformed into an automated system consisting of machines that operate on the basis of cybernetic principles, and the objects of labor have recently become products with pre-established properties.

The objects of production are objects of material nature, to which human efforts are directed with the use of means of labor for obtaining the necessary products, which has consumer properties, for example, for agriculture characterized by the following: raw materials, seeds, feed, fuel, and others. They are fully used in each cycle, thus changing their primary natural form and materially part of the new product.

Means of production are equipment, machinery, production facilities, and others, through which workers work on objects of production during the manufacture of certain products or services. In other words, these are the means of production used in the manufacture of products, but they are not materially included in the products received, and do not change their natural structure during the production cycles. Fixed assets transfer value to new products gradually in the amount of accrued depreciation. The means and objects of work include all the means that are created, both by human work, and have a natural origin, for example, land. At the same time, the essence of production costs is associated with the costs of restoring the means of production.

During the production of agricultural products, the means of production take the form of fixed assets, while the objects of labor take the form of circulating assets.

Revolving funds are the means that take part in the process of manufacturing a new product once, and they change completely their form, in addition, they transfer the cost of production. Revolving funds include separate means of labor, the cost of which is quite low, and the service life is less than a year. As a rule, these are items, the cost of which is rather low.

Fixed assets are the means of production, which take part in the process for several cycles, without changing their natural form, and perform the same function over several cycles. The cost price in this case is transferred to the cost of new products in the amount of depreciation.

Collectively, fixed assets and fixed assets constitute production assets, which are the basis of the manufacturing process. The basic principle of the division of productive assets is a way of transferring their value to manufactured products or services.