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INNOVATIVE CAPITAL EXPENDITURE IN GROWTH AND DEVELOPMENT OF THE COMPANY


BOJAN JOKIĆ
HIGH ECONOMIC SCHOOL FOR PROFESSIONAL STUDIES PEĆ-LEPOSAVIĆ, SERBIA

Issue:

MOCM, Number 16, Volume II

Section:

Issue No. 16 - Volume II (2010)

Abstract:

Every company tries to increase its productivity by introducing in the production some new technical solutions. For such solutions it is necessary to provide the appropriate amount of capital to be invested in the acquisition of new techniques and technologies. From this point of view, capital expenditure in the development of enterprise application causes objectively conditioned economy. Therefore, the analysis which this paper deals with refers to consequences of capital expenditure to objective conditioned economy whose changes come due to introduction of new production techniques and technology as the innovative elements of the investment policy. Additional capital investments in obtaining new technology and techniques are conditioned on the one hand by the increase of cost of operation funds, on the other hand the reduction of labor costs, increase productivity due to live work and material due to the improvement of technological procedures and processes that allow the rational use of elements of production. In practice of business operations different combinations of these changes are possible. It is possible that investments in new equipment and technology comes to reducing the cost of funds for the work per unit of product, but to slightly increase the cost of materials. It is also possible to reach the reduction of labor costs and resources for the work per unit of product due to the application of modern technical and technological solutions and to a lesser extent, increased costs of materials per unit of product. All these aspects have been treated in this research through various forms of innovative investment and their reflection to rationalizing the operating costs and improving product quality, improving overall business success through an appropriate case study of a specific company.

Keywords:

Type of techniques and technology, improving product quality, business success.

Code [ID]:

MOCM201016V02S01A0004 [0002776]


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