p Turnover of Production Assets, circuit of production assets, which is regarded as a periodically repeated process, as a result of which the value advanced by society is fully returned to its initial form. The production assets of the socialist enterprise comprise productive assets and circulating funds. As far as the character of their functioning in production, the method of transfer of the value to the product of labour, the turnover method and the method of replenishment are concerned, productive assets are divided into fixed production assets and turnover funds. Production assets of socialist enterprises make their circuit and turnover in a planned way. Assets move without crises or violations of the course of a single process of turnover at the production and circulation stages. The time of turnover of production assets is comprised of the period of production and circulation. The time of production is the duration of the assets operating in the sphere of production, beginning from their arrival and ending in the manufacture of ready products. It involves: 1) labour time, i. e., the time the product is subjected to the direct effect of labour (the duration of the -operating period is different for different branches and different enterprises); 2) intervals determined by the necessity of bringing the effect of the natural processes to bear on the object of labour (physical, chemical, biological) to obtain a certain useful effect (peat drying, leather tanning, etc.), and also determined by certain organisational reasons associated with the work regime and the specific features of production; 3) the time during which the objects and means of labour are held in production reserves, in other words, when they are on their way to the production process to ensure its continuity. The time of circulation includes: 1) the time for purchasing and 376 transporting the necessary means and objects of labour; 2) the time needed to sell ready products which begins the moment the ready product is delivered to the warehouse and ends with the receipt of money from its sale on the enterprise’s account. The time of turnover of production assets is lessened, depending, first of all, on the accelerated pace of scientific and technical progress which influences every time element of production and circulation. The rate of turnover of production assets influences to a great extent the efficacy of their use. It is determined by the number of turnovers (n), made in a definite period (O), or the duration of one turnover (o). The dependence between them is expressed by the following formula:

Important indicators of the work of the enterprise such as labour productivity, the cost of product, profitability and so on also depend on the rate of turnover of production assets.