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The third function is connected with process of economic incentives of the enterprise and its workers. The profit is used as a source and a condition of formation of incentive funds, and also as a source of financial resources for implementation of process of expanded reproduction.

Sometimes, for preservation of qualified personnel, the enterprise allocates considerable funds in fund of compensation, thereby increasing costs of production and, respectively, reducing the mass of profit. But all similar steps have nevertheless tactical character and are eventually subordinated to the solution of the main strategic task - to receiving perhaps bigger profit.

the principles of the organization and functioning of the mechanism of formation and distribution of financial results which follow from the general principles of quick and economic independence of the enterprise, a liability and a material interest, self-sufficiency and self-financing;

How to start consideration of essence of profit, it is necessary to define a number of initial economic categories, real-life in the conditions of market economy from which logically there is a concept "profit".

In this paragraph the mechanism of formation and distribution of financial results was considered as an element of the financial mechanism of the construction organization. However, to understand how process of management of the mechanism of formation and distribution of financial results is carried out as powers on control of this mechanism are distributed, and also to investigate a place and a role of this mechanism in a control system of finance of the contract construction organization, it is necessary to consider essence of the concept "management of formation and distribution of financial results as component of financial management of the construction organization".

The part of net profit which remained after distribution is called as retained earnings and serves, as a rule, as a source of replenishment of current assets of the enterprise before making decision on its distribution.

The decentralized funds of money are intended for satisfaction of own requirements of the enterprise. The part is formed of them at the expense of the net profit left at the disposal of the construction organization: funds of accumulation and reserve funds which treat funds of production appointment; and also funds of consumption which treat funds of non-productive appointment.

Profit as the economic category represents set of the economic, distributive, financial relations, developing concerning education, distribution and uses of part of again created cost acting as an increment of the sum of the means advanced on implementation of economic activity or as surplus over the costs of production suffered during this activity and connected with it.

The institutional link includes financial bodies of the contract construction organizations and their division (group financial the worker, the formations which are directly carrying out process and distributions of financial results.

concrete forms, methods and technologies of the organization and realization of the financial relations (for example, an order and conditions of formation arrived; order of definition and identification of losses; order of distribution of gross profit; order of distribution of net profit, being at the command enterprises; order of a covering of losses; order of the accounting of formation of financial results and drawing up reporting; order of the accounting of distribution of financial results and drawing up reporting);

The control system of financial results can be divided conditionally into two interconnected subsystems, each of which includes part of organizational structure of management, the mechanism of management, and also process of management of financial results of the enterprise:

Again created cost breaks up to two parts: a salary of workers which from the point of view of the businessman is part of costs of production, and the marginal income which is formed only as a result of realization of construction production that means public recognition of its usefulness.