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Production Function

Wikipedia defines Production Function as follows: A production function can be expressed in a functional form as the right side of Q = f(X1,X2,X3,...,Xn) where: Q = quantity of output X1,X2,X3,...,Xn = quantities of factor inputs (such as capital, labour, land or raw materials). In economics, factors of production (or productive inputs or resources) are the commodities or services used to produce goods and services. 'Factors of production' may also refer specifically to the primary factors, which are stocks including land, labor (the ability to work), and capital goods applied to production. Information Technology Industry majorly considers the following input variables for the production function:

Tangible Inputs

Land The payment for use of a land to the owner i.e. rent. Labor The human effort used in production which also includes technical and marketing expertise. The payment in the form of wages. The capital stock The maintenance charges for the technological equipments and charges for upgradation or purchase of new equipment or building or other machinery.

Non-Tangible Inputs
Human capital Human capital is embodied in a human being and is acquired through education and training, whether formal or on the job. Human capital is important in modern economic theory. Intellectual capital A more recent coinage is intellectual capital, used especially as to information technology, recorded music, written material. This intellectual property is protected by copyrights, patents, and trademarks.

Revenue Function
Courtesy:
For the fiscal year ended August 31, 2010, the company generated net revenues of US$23.09 billion. The operating profit of the company was $2.91 billion in FY2010, an increase of 10.2% over FY2009. Its net profit was $1.78 billion in FY2010, an increase of 12% over FY2009.

In Millions of USD
Revenue Other Revenue, Total Total Revenue Cost of Revenue, Total Gross Profit Selling/General/Admin. Expenses, Total Unusual Expense (Income) Other Operating Expenses, Total Total Operating Expense Operating Income Other, Net Income Before Tax Income After Tax Minority Interest Equity In Affiliates Net Income Before Extra. Items Accounting Change Discontinued Operations Extraordinary Item Net Income Preferred Dividends Income Available to Common Excl. Extra Items Income Available to Common Incl. Extra Items

12 months ending 12 months ending 2010-08-31 2009-08-31


23,094.08 23,094.08 15,843.33 7,250.75 4,326.36 9.54 20,179.23 2,914.84 -15.72 2,914.37 2,060.46 -279.80 1,780.66 1,780.66 1,780.66 1,780.66 23,170.97 23,170.97 16,329.85 6,841.11 3,947.98 249.27 20,527.10 2,643.86 -3.29 2,677.74 1,938.15 -348.18 1,589.96 1,589.96 1,589.96 1,589.96

12 months ending 12 months ending 2008-08-31 2007-08-31


25,313.83 25,313.83 18,128.24 7,185.59 4,151.13 22.87 22,302.24 3,011.58 -2.21 3,107.76 2,197.19 -505.44 1,691.75 1,691.75 1,691.75 1,691.75 21,452.75 21,452.75 15,411.27 6,041.47 3,522.49 26.37 18,960.13 2,492.62 -21.76 2,618.92 1,723.06 -479.91 1,243.15 1,243.15 1,243.15 1,243.15