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Abstract
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.