What is included in the material and technical base of the enterprise

The optimal formation and rational use of the means of production included in the material and technical base of the enterprise are an important condition for its effective economic activity. The composition of these means of production is determined and depends on the type of economic activity in which the enterprise is engaged.

What is the material and technical base

In the language of economists, the material and technical base of an enterprise is an element of the productive forces, on the basis of which production relations are formed between the subjects of the production process. In fact, this is a complex of means of production, material and material elements necessary to ensure the activities of the enterprise.

The material and technical base has a natural and cost composition. The part of it, which has a natural expression, depending on the type of activity, may include means and objects of labor: tools, machinery and equipment, industrial buildings and auxiliary facilities, perennial plantings, raw materials, construction materials, seed stock, livestock and livestock feed, etc. The value expression may vary based on the degree of depreciation and amortization. Elements of the material and technical base are arranged taking into account their use in a particular technological process.

The concept of material and technical base takes into account not only the availability and composition of components, but also their condition: technical characteristics and adaptability of production facilities, age of machinery, tools and equipment, compliance of available material resources with the production cycle used at the enterprise.