Audit and economical analysis

Table 187

International practice of determining financial results

Net sales of goods X1	Net sales revenue / of sales
	Variable costs		Costs associated with changes in the volume of products
	Marginal profit X2	Fixed costs		Non-dependent costs
		Operating profit X3	Period expenses, other operating income			Revenues from sales (excluding sales, administrative and other economic expenses), excluding products (works, services)
			Benefits   basic operations X4	Income from financial activities, costs			Revenues and expenses from financially structured processes
				Benefits   of business X5		Extraordinary income expenses	Revenues or expenses associated with events or transactions that are significantly different from the ordinary activities of the enterprise, that is, often or systematically
						Benefits before tax  X6	Founded by tax authorities according to the rules profit Loss)
Profit   is recognized in profit or loss before disposal of profit or loss							Taxes, fees, charges X7
							Net profitX8

 Table 188

Marginal profit and calculation of its coefficient

Indicators	Last year	The reporting year is conditional	Reporting year
An gross receipts from product sales	Mo‘*Bo‘	Mx*Bo‘	Mx*Bx
Changes in the cost of the product sold	Mo‘*O‘o‘	Mx*O‘o‘	Mx*O‘x
Marginal profit	Mo‘(Bo‘-O‘o‘)	Mx(Bo‘-O‘o‘)	Mx(Bx-O‘x)
Costs associated with the cost of goods sold	Do‘	Dx	Dx
Net profit from sales	Mo‘(Bo‘-O‘o‘)-Do‘	Mx(Bo‘-O‘o‘)-Dx	Mx(Bx-O‘x)-Dx

 

Character descriptions;

          M0, Mx - the actual number of products produced in the previous year (M0) and reporting year (Mx);

          Price per unit Bx sold last year (BH) and year (Bx);

          O, OX vary from one year to another (OU) and units in the reporting year (UX);

          D   training,   D x( D  reporting year curriculum) and (  Dx) general variable costs.

The above factors affecting the change in the profit margin and its relationship with billing. Changes in profits and their impact on the quantity of a product to account for factors, including the effect of price changes per unit and variable costs per unit of production in Russia. 

 1. To determine the effect of marginal gains and changes in quantities of products, the following links are used:

Mx * Bo‘ - Mo‘ * Bo‘ = Bo‘ * ( Mx - Mo‘ );

             

 2. The effect of price changes on marginal profits can be found at the following link:

Mx*Bx-Mx*Bb=Mx*(Bx-Bh);

 3. The effect of a change in marginal costs on changes in the value of a product can be found at the following link:

Mx*OX-Mx*OO= Mx*(OX - OO);

You can calculate the influence of factors affecting the margin and net profit, in the aggregate of three factors.

 Improving the profitability of the enterprise: increasing sales (selling goods on credit, after-sales service, using various deductions in payments), improving the quality of purchases, searching for markets, reducing delivery times; producing full capacity of production capacities, increasing labor productivity, economical use of production resources, low quality and non-production products) can be achieved.