The aspects about economic analysis and measure for restructure a company.

Tent, Ionut Dacian ; Dumitrescu, Constantin Dan ; Dumitrescu, Eugenia Cintia Ivonne 等

Abstract: This paper aims to analyze the cost 1000 RON turnover in order to determine the possibility of restructuring the company. After analysis by the research work was developed a case study on the possibility of restructuring and modalities used for this operation, method used for this operation

Key words: financial analysis, annual turnover, forecasts

1. INTRODUCTION

In a general acceptance the cost is on resource expression in monetary consumption of achieving the company, or a methodological perspective, the cost can be treated as a grouping or regrouping, according to certain criteria, expenditure, combinations are so many as a construction game. So the cost is the total consumption of resources that made the company to achieve a unit of product or service.

2. EXPENDITURE ANALYSIS BASED ON TURNOVER

For restructure the production system are based on the analysis of turnover variation and expenses resulting from the manufacturing cycle of the company's products.

For analysis using data from account profit and loss of society in Table 1 :

Tab. 1. Efficiency of expenditure afferent turnover in 2009-
2010

Nr.   Indicatoros    2009      2010     Deviation   Indices
                                        ([DELTA])     (%)

1          A        5343702   3841159   -1502543     71,88
2          B        4077847   2346984   -1730863     57,55
3          C          --      3629244      --         --
4          D                  2863394      --         --
5          E        763,11      611      -152,11     80,1

A--Turnover ([summation][q.sub.i] x [p.sub.i])

B--Expenditure afferent of turnover
([summation][q.sub.i] x [c.sub.i])

C--Recalculated turnover
([summation][q.sub.i1] x [p.sub.i0])

D--Expenditure to 1000 RON turnover

E--Expenditure afferent of recalculated turnover ([summation][q.sub.i1]
x [c.sub.i0]).

In Figure 1. I represent account indicators for profit and loss.

[FIGURE 1 OMITTED]

3. THE CALCULATION MODEL OF THE INDICATOR, EXPENDITURE AT 1000 RON TURNOVER

[C.sup.(1000)] = ([summation] [Ch.sub.i] / [summation] CA) * 1000 = ([summation] [q.sub.i] x [c.sub.i] / [summation] [q.sub.i] x [p.sub.i]) x 1000

Where: Chi = Expenditure at each levelcategories of activity "i"; CA = turnover; qi = quantity; ci = the unit price at product "i"; pi = The average selling price (excluding T.V.A).

a) Total change in the indicator ([DELTA] [C.sup.(1000)]):

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]

b) Decomposition of the factors of influence:

A [C.sup.(1000)] = [DELTA] [g.sub.i] + [DELTA] [p.sub.i] + [DELTA] [c.sub.i]

c) Establishing the influence of each factor with changes on the indicator:

1. Influence change in the structure of turnover:

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]

2. Influence change in average selling prices:

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]

3. Influence change in unit production costs

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]

[FIGURE 2 OMITTED]

Expenditure to 1000 RON turnover fell by 152.11 [per thousand], from 763.11 [per thousand] to 611 [per thousand], favorable situation for the company analyzed, the efficiency related of turnover expenses increased, which means that the growth rate of turnover business [(3841159/5343702 x 100] = 71.88%) ahead of spending growth [(3793848/5959413) x 100] = 63.66 [per thousand]

4. FACTORS INFLUENCING THE EVOLUTION OF INDICATORORS (COSTS AT 1000 RON TURNOVER)

Evolution of indicators, expenditure at 1,000 RON turnovers takes place in the structure of turnover, the average selling price and unit cost of products. Structure of turnover worsens with increasing the rate of 25.87 [per thousand], average selling prices increased and a favorable effect on lowering its rate to 43.53 [per thousand], the unit cost is reduced and lowers costs 1,000 RON figure business to 134.45 [per thousand], favorable aspect for society, which compensates for the adverse outcome due to worsening of the structure turnover.

Modification costs 1,000 RON turnover is the consequence of the following factors, namely: material expenses (from 12.02 [per thousand] to 13.84 [per thousand]), energy costs and water (from 14.04 [per thousand] to 14.14 [per thousand]) cost of goods (from 205[per thousand] to 325.19 [per thousand]), staff costs (from 123.75[per thousand] to 159.25 [per thousand]), adjustment costs of current assets (from 0 [per thousand] to 2.45 [per thousand]) and fixed tangible and intangible assets (from 2.99 [per thousand] to 6.66 [per thousand]), which rose a total of 163.72 [per thousand], which offset the decrease of 291.24 [per thousand], both raw materials and consumables (from 540.82[per thousand] to 346.44 [per thousand]) and the decrease in other operating expenses (from 216.59[per thousand] to 119.73 [per thousand]) (Fig. 3).

A*--material expenses

B*--energy costs and water

C*--cost of goods

D*--staff costs

E*--adjustment costs of current assets

F*--which offset the decrease of

G*--decrease expenditure raw materials and consumables

Reducing costs of raw materials and direct materials is achieved by reducing material consumption per unit of product and their purchase price.

In terms of content these items of expenditure are differentiated on the industries in relation to a number of factors that generate production costs and in particular on the particular production technology and organization of industry.

[FIGURE 3 OMITTED]

5. CONCLUSION

Ideal for developing a company is when the cost per thousand RON turnover to decline, and efficient expenditure increased turnover, which means that the growth rate of turnover ahead of the growth rate of expenditure.

In the study we already reported that, for example, has reversed the relationship between costs and prices. Unlike this type of relationship, the market economy becomes the dominant indirect relationship between cost and price. Influences the cost price on the market made through the offer price included the cost of the product. Instead, the market price becomes an indirect role on costs forcing manufacturers to cut costs to increase profits. Direct competition between producers and competition generates indirect costs, earning more than those producers whose costs are lower.

6. ACKNOWLEDGEMENT

This work was partially supported by the strategic grant POSDRU/88/1.5/S/50783, Project ID50783 (2009), co-financed by the European Social Fund--Investing in People, within the Sectoral Operational Programme Human Resources

7. REFERENCES

Bailesteanu G., Diagnosis, risk and economic efficiency in business, Publishing, Mirton, 1998

Dumitrescu C.D.s.a, The general management elements, Publishing, Timisoara, 1998

Petrescu S., s.a, Finance economic analyse, Publishing, Iasi, 2002

Tamasila M., Performance analyze and the company diagnosis, Publishing Solness, Tirnisoara, 2008

Valceanu G., Robu V., Georgescu N., Finance economic analyse, Publishing, Economica, Bucuresti, 2005