Using Indexes in the Models of Analysis of the Company Profit

M. Dinca; G. Dinca

Authors

M. Dinca Transilvania University of Brasov, Romania
G. Dinca Transilvania University of Brasov, Romania

Keywords:

quantitative models of analysis, sales turnover, profit due to sales turnover, factors of influence, expenses at 1 leu sales turnover, index of prices, index of quantities weighted by price, index of costs

Abstract

Even if the profit maximization objective has been replaced with the value maximization objective, the managers still have to control and analyze the level of the company profit, and especially of the profit associated with the sales turnover. The quantitative models offer a very useful instrument of analysis of the company profit, as they allow the control and management of the key factors that influence the evolution of the profit. Integrating indexes in the models of analysis presents new perspectives, because it combines the advantages of clarity and straight-forwardness of the indexes with the in-depth of the quantitative models of analysis.