Added Value as an Indicator of the Company's Economic and Social Development

The main purpose of economic development of economic entities at all levels and, first of all, of small or medium-sized businesses is the getting a profit, which is the basis for the formation of both explicit and implicit designated funds, namely the reserve fund, the production development fund, the collective development fund and fund of material incentive. Today, the formation of firms' funds for solving social problems is becoming increasingly important, the main one at the government level is improving the quality of life of the population of the country, which is primarily formed by the wages. Salary (payroll) and profit (the fund of material incentives) are the economic basis for the formation of the quality of life of workers. The amount of wages spent on the creation of products and profits of the enterprise from the sale of manufactured products is the added value or net production created by the firm for the analyzed period. The article considers the factors of the formation of added value as a result of the company's production and economic activities. Various variants of calculation of the added cost are considered depending on a level of rates of the tax to profit and deductions for social needs.