THE INFLUENCE OF THE COSTS AND INCOME ON PROFIT IN CANDY INDUSTRY

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 company and the costs that are incurred in the process of reproduction. From the expression for the calculation of profit it is obvious that the direct impact on business results have revenues and expenses. Measuring the impact of these two factors, as well as their including elements, leads to clear information about which element, the factor of production, has most influenced change of the business results. On the basis of the analysis and measurement we can be more adequate with creating a business policy in the production company, because from the aspect of the economy, it is necessary to have the optimal production program, in order to achieve a positive result, profit, and to define strategies for the management of costs. Measuring the impact 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 the business of the company that must have been changed.


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 created 2017-04-01, last modified 2017-04-24

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