The Price Of Services
Consumer service enterprises in the Ukrainian SSR have now been converted to the new system of planning and economic incentive. To this end, norms governing the expenditure of raw materials per unit of output have been revised, the wage system has been put in order, the production capacities of enterprises have been defined more precisely, etc. The changes have not affected only such an important sector as prices and rates for services. At service enterprises the latter are of a special character. They are used as the basis for assessing the fulfillment of the plan by a given enterprise and for determining the volume of services per inhabitant of a republic (region, city, village). The level of prices determines the profitability of the enterprise. With the advent of the payment of wages to the greater part of workers and employees of consumer service enterprises on the basis of a percentage of the proceeds, the price has also become the criterion for determining proceeds, i.e., the level of the plan. Prices and rates are also the basis for determining labor productivity. Finally, the output-capital ratio of enterprises also depends on their level. In addition, they have yet another particular feature. As a rule, prices are revised downward, and only in exceptional cases are they revised upward, which places special responsibility on planning organizations and consumer service enterprises in their confirmation.
Year of publication: |
1974
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Authors: | Michnik, G. |
Published in: |
Problems of Economic Transition. - M.E. Sharpe, Inc., ISSN 1061-1991. - Vol. 17.1974, 5, p. 64-70
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Publisher: |
M.E. Sharpe, Inc. |
Saved in:
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