Analysis of the influence of costs on profit and corporate efficiency of the enterprise: A case study

Abstract

Costs have a central importance in the business policy of the company. In front of managers there is a serious task of analyzing any decision related to future amount of the costs which will occur as a result of decisions made. Cost management is target-oriented design of the costs. It focuses on the interplay of instruments to reduce costs, increase productivity of resources, long-term growth and enterprise development. This paper presents the main theoretical views on the importance of costs and cost management in the business and functional dependence of the success of the company on adequate decisions in cost management. The analysis was made in enterprise for soybean processing, according to data from official financial statements and documents from the company. On the basis of specific results that were calculated in the analysis for change of the profit, there were presented few decisions that can improve business process in the enterprise and influence corporate efficiency.