Funds of Socialist Enterprises, material and monetary means servicing the processes of production and circulation in a planned way. The means of production make up the productive assets of an enterprise. Depending on the character of the turnover, the productive assets are divided into fixed production assets and turnover funds. Depreciation fund is formed at enterprises to replace worn-out machines and plant. They also have circulating funds and consumption assets—non-productive fixed assets. In the Soviet Union, the economic and material incentive of enterprises and work collectives at various state cost- accounting enterprises is ensured through the economic incentives funds—the material incentive fund, the socio-cultural and housing fund, and the production development fund. Collective farms have their social funds in natural and money forms. Their formation and use are determined by the collective farm Rules. Indivisible ( unshared) funds occupy a leading position among the social assets at the collective farm. The cultural and everyday-services fund, the farmers’ material assistance fund, as well as the state social consumption funds are used to satisfy the farmers’ cultural and everyday requirements. The material incentive for collective farmers comes from the work payment fund, which includes payments at fixed rates (some 90 per cent of the fund) and additional payments to collective farmers for achieving high quantitative and qualitative results. Rational use of the funds of socialist enterprises is essential for raising the efficiency of social production, increasing output, improving its quality and reducing production costs. The socialist economic system ensures a steady growth and effective use of the funds.