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Economic score of the company business is expressed through profit or loss.Profit or loss, is determined as the difference between the income of the companyand the costs that are incurred in the process of reproduction. From the expressionfor the calculation of profit it is obvious that the direct impact on business resultshave revenues and expenses. Measuring the impact of these two factors, as well astheir including elements, leads to clear information about which element, the factorof production, has most influenced change of the business results. On the basis ofthe analysis and measurement we can be more adequate with creating a businesspolicy in the production company, because from the aspect of the economy, it isnecessary to have the optimal production program, in order to achieve a positiveresult, profit, and to define strategies for the management of costs. Measuring theimpact of cost on the profit is the first step to determine the changes in costs,mostly for their growth, and in that sense, the invention of critical points in thebusiness of the company that must have been changed.

Keywords: costs ; revenues ; profit ; profit ratio

Subject(s): Financial Economics

International Relations/Trade

Production Economics

Issue Date: 2009

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/245219 Published in: Economics of Agriculture, Volume 56, Number 4 Page range: 627-640

Record appears in: Institute of Agricultural Economics, Belgrade - Serbia > Economics of Agriculture

Economics of Agriculture

Economics of Agriculture





Autor: Berber, Nemanja

Fuente: http://ageconsearch.umn.edu/record/245219?ln=en







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