Audit and economical analysis

Table 72

Compliance with growth, profitability and asset volume

Increase of profit	Increase of income	Increase of asset	%
F1/F0*100	ST1/ST0*100	A1/A2*100	100
Growth compatibility
F1/F0*100>ST1/ST0*100>A1/A2*100>100 or
100

Sales volumes, production costs and profitability are closely related. Gross revenue, total revenue, is achieved through the volume of sales. Compared with the production costs, the profit goes to the result indicator. It can be described in the mathematical expression as follows.

F (D) = MSST-SMICHT (TSOQ) (3.1)

In this case:

F (D) - Profit (income);

Net sales of MSST products;

SMICHT - production cost (value of goods purchased).

In the accounting book, the order of output, cost and effectiveness of accounting is determined by the following link.

Sales Volume - Expenses = Result

The result is that it is dependent on sales volume or profitability, as well as on production costs or the cost of procurement. His unity expression can be described as follows.