The production process in any industry is accompanied by the use of appropriate tools. Means of production are divided into means of labor and objects of labor, which are used in the manufacture of material goods. Given the role in the manufacturing process, the necessary means of labor are divided into natural and technical means. Technical means of production are tools, which include mechanisms, equipment, and tools.
Means of production also consist of general conditions, which include buildings, means of transport, communications and other components of the production infrastructure. Production items are elements of the outside world that are used as raw materials and processed. In this context, the essence of the organization of production has a key role. Means of production at the time of exposure to a person transfer the cost of new products in parts. Thanks to modern scientific and technological progress, tools have been transformed into an automated system consisting of machines that operate on the basis of cybernetic principles, and objects of labor have recently turned into products with predetermined properties.
Production items are objects of material nature, on which human efforts are directed using means of labor to obtain the necessary products that have consumer properties, for example, agriculture is 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 are financially part of a new type of product.
Means of production - this is equipment, machinery, production facilities and others, with the help of which workers act on production items during the manufacture of certain products or the provision of services. In other words, these are means of production used in the manufacture of products, but they are not materially included in the resulting product, and do not change their natural structure during production cycles. Fixed assets carry out the transfer of value to new products gradually in the amount of accrued depreciation. Means and objects of work include all means that are created both by human work and have a natural origin, for example, land. Moreover, the essence of production costs is associated with the costs of restoring the means of production.
During the implementation of agricultural production, the means of production take the form of fixed assets, while the objects of labor take the form of revolving funds.
Revolving funds - funds that take part in the process of manufacturing a new product once, and they completely change their shape, in addition, they transfer costs to manufactured products. Revolving funds include individual means of labor, the cost of which is quite low, and the life of less than a year. As a rule, these are items whose cost is quite low.
Fixed assets - means of production, for several cycles taking part in the process, while not changing their natural form, and carry out the same function for several cycles. In this case, the cost is transferred to the cost of new products in the amount of depreciation.
In aggregate, revolving and fixed assets comprise production assets, which are the basis of the manufacturing process. The basic principle of the division of production assets is a way of transferring their value to manufactured products or services.