ResearchBib Share Your Research, Maximize Your Social Impacts
Sign for Notice Everyday Sign up >> Login

Formation of a Profit Management Mechanism for Commercial Enterprises

Journal: Oblik i finansi (Vol.1, No. 84)

Publication Date:

Authors : ;

Page : 154-158

Keywords : profit; profit analysis; profit mechanism; profit management; financial results;

Source : Downloadexternal Find it from : Google Scholarexternal


Profit is one of the main economic categories, reflecting all aspects of the activities of business entities and ensures their stable operation. Making and maximizing a profit gives the company the opportunity for continuous development and improvement, providing it with competitive advantages in the market. Achieving maximum profit and minimizing costs is one of the main goals of any commercial enterprise. The purpose of the article is to reveal the theoretical foundations of the economic mechanism of profit management based on the use of the processes of its planning, analysis and distribution. As study results shows the structure of the mechanism of profit management includes: state regulatory and market economic regulation of the process of formation and use of profit, as well as a system of specific internal methods and techniques that form the enterprise. It was emphasized that the theoretical foundations of profit management should be based on the principles of integration with the general management system, for the solution of the different tasks, flexibility and variability of approaches to the development of management decisions. It was substantiated that in the process of forming profits, enterprises often face a decrease in actual revenues compared with the plan. This situation should be corrected by reducing costs and ensuring non-operating income. It was proved that the main goal of the profit distribution process is to optimize the proportions between the share of profits, its capitalization and consumption. Optimization is necessary to ensure the implementation of the enterprise development strategy and the growth of its market value. The necessity of creating special separate subdivisions at enterprises (profit centers), which provide in dynamics the optimal combination of the values of sales volume, selling prices, variable and fixed costs, income and net profit, was confirmed.

Last modified: 2019-06-21 19:41:50