Turnover Funds, a part of the productive assets which are usually fully consumed during one circuit, changing their naturalmaterial form and wholly transferring their value to the manufactured product. The turnover funds include objects of labour in the sphere of production. Among 375 these are: raw, basic and ancillary materials, unfinished products, and fuel. In Soviet economic practice, turnover funds also include stock of low cost and durability, whose service life does not exceed 12 months or whose cost is below 50 roubles. The economical use of turnover funds, and the constant improvement of their use and, also, of the quality of the objects of labour in use are an important condition for raising the efficiency of social production. The material intensity of production is one of the generalising indicators of the use of turnover funds. It is lowered and turnover funds are used economically through the establishment and employment in practice of a single system of progressive rates for expending material resources. The lower the rate of expenditure of material resources per unit of product, the less—all other conditions being equal—the reserves and work in process. Higher rates lead to freezing the means, while lower rates lead to disruptions in the rhythm of production and circulation. The economical use of turnover funds is an important factor in making all social production more efficient.