Economic effect - the difference between the results of the business entity and the costs incurred to obtain them to change the conditions of activity.
Distinguish between positive and negative economic effect.
Benefit
A positive economic effect is achieved when the results of the enterprise (product in value terms) exceed costs. This effect is called profit . To obtain it, it is necessary to expand production, or to save resources per unit of product, or both.
Negative effect
If the costs exceed the results, there is a negative economic effect, that is, a loss.
Calculation Formula
To calculate the economic effect for the year, use the formula:
Where
- E y - annual savings or results that are achieved as a result of specific activities;
- E nc is the normative efficiency coefficient ; constant value, which depends on the specific field of activity;
- C - costs for a specific activity for which the economic effect is calculated.