Open AccessThe variation of the turnover and its effect on the exploitation risk
Author(s) -
Carmen Elena Stoenoiu,
Florica Mioara Șerban,
Cécilia Cristea
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1169/1/012033
Subject(s) - portfolio , exploit , covariance , risk analysis (engineering) , variation (astronomy) , volume (thermodynamics) , econometrics , order (exchange) , control (management) , variable (mathematics) , product (mathematics) , turnover , industrial organization , business , computer science , operations management , economics , statistics , mathematics , finance , mathematical analysis , physics , geometry , computer security , management , quantum mechanics , artificial intelligence , astrophysics
Through this study, an analysis was made of the relationship between the result, the volume of activity and the cost structure for a multiproduct enterprise. It was considered that enterprises are constantly facing the need to explore and exploit new production possibilities and for this they need to permanently reconfigure their product portfolio. In order to achieve this, the company must have a control of fixed and variable costs that will allow it to choose the volume of activity correlated with the internal characteristics and information on the market. The statistical calculation was used to calculate the risk associated with turnover through the covariance coefficient. As the size of the risk depends on the company’s ability to control the cost structure and to act to reduce possible volume variations, turnover was considered to be the most important indicator that should be given high importance and should be constantly monitored. Thus, from the study it can be seen that the change in turnover determines the change in the risk coefficient.