Transport services

TRANSPORT EFFICIENCY - AN INDICATOR OF THE EFFECTIVENESS OF THE TRANSPORT SYSTEM

Determining the efficiency of activities is always a reflection of effectiveness, the basis for assessing the company's activities, indicates its competitiveness and characterizes the specifics of its work.
Efficiency is a general economic category inherent in all socio-economic formations and expressing the relationship between the final result of production - the effect and the total cost of production.
Obviously, in a market economy, the content of the economic effect should be determined from the perspective of the owners of the means of production. Only with this approach is there a motivation for the development of production on a specific basis. Thus, in a market economy, the economic effect is not the entire newly created value, but only the surplus value in the form of profit. Such an understanding of the economic effect in no way infringes on the interests of employees who sell their mental and physical abilities in the labor market, i.e., get a job of their choice at the enterprise that offers higher wages and better working conditions. The economic effect in the form of profit also reflects the interests of society as a whole, represented by the state, because profit is subject to taxation, and therefore, the more profit enterprises make, the higher the deductions to the state budget in the form of income tax.
The absolute value of the effect does not reflect the scale of production and the costs incurred, and therefore says nothing about the cost of this effect. In other words, the absolute value of the effect reflects only a quantitative assessment of the production results, but does not contain their qualitative characteristics. To obtain such a characterization, it is necessary to compare the absolute value of the effect with the costs of obtaining it. It is this characteristic that is the measure of production efficiency (effectiveness).
Thus, in quantitative terms, efficiency, unlike effect, is a relative value, its dynamics is not related to any changes in the production process. The growth of production efficiency is possible only under the following conditions: an increase in the effect at unchanged costs, a decrease in costs while achieving the same effect, an increase in the effect at a slower rate cost growth. If the results and costs of production change in the same direction and at the same rate, the level of production efficiency remains unchanged.