GRADUATION THESIS
Topic name: “The relationship between profit and cost of printing products of An Khanh Advertising and Trading Company Limited. Solutions to maximize profit for the company in the future”
ACKNOWLEDGEMENTS
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First of all, I would like to sincerely thank Master Phung Danh Thang - Department of Microeconomics, who has wholeheartedly instructed, guided, answered and resolved difficulties for me during my internship and completion of this graduation thesis.
I would also like to sincerely thank the board of directors and all the uncles, aunts, brothers and sisters working at An Khanh Advertising and Trading Company Limited, especially Ms. Luu Minh Ha - Director of An Khanh Advertising and Trading Company Limited for enthusiastically helping me, creating conditions for me to do an internship as well as get acquainted with the actual working environment before I graduated.
Thank you very much!
INDEX
LIST OF TABLES 0
Chapter 1. OVERVIEW OF THE STUDY TOPIC 1
1.1 Urgency of research topic 1
1.2 Establish and declare 2
1.3 Related research 2
1.4 Research objective 3
1.5 Research object and scope 3
1.5.1 Research subjects 3
1.5.2 Scope of research 4
1.6 Research data sources 4
1.7 Topic structure 4
1.8 Some concepts and basic research content 4
1.8.1 General theory of costs 4
1.8.1.1 Concept of production costs 4
1.8.1.2 Classification of production costs 5
1.8.1.3 Analysis index 6
1.8.1.4 Factors affecting production costs 9
1.8.2 General theory of profit 10
1.8.2.1 Concept 10
1.8.2.2 Classification 10
1.8.2.3 Factors affecting profits 10
1.8.2.4 Economic significance of profit 11
1.8.3 Relationship between cost and profit 11
1.8.3.1 Revenue and marginal revenue 11
1.8.3.2 Profit maximization condition 11
1.8.4 Delimiting research content 12
Chapter 2. ASSESSMENT OF COSTS, PROFITS AND RELATIONSHIPS
BETWEEN COST AND PROFIT 13
2.1 Research system method 13
2.1.1 Data collection method 13
2.1.2 Data synthesis processing method 13
2.2 Current status of costs and profits of An Advertising and Trading Company Limited
Khanh 14
2.2.1 Overview of An Khanh Advertising and Trading Company Limited 14
2.2.1.1 Overview of An Khanh Advertising and Trading Company Limited 14
2.2.1.2 Functions and duties of departments in the company 14
2.2.1.3. Company organization chart 15
2.2.2 Current status of company's costs and profits in the period 2006-2009. .. 15
2.2.2.1 Current status of company profit realization 15
2.2.2.2 Current status of company cost implementation 16
2.2.2.3 The relationship between production and business costs and profits at the company
An Khanh Advertising and Trading Co., Ltd. in the period 2007-2009 17
2.2.3 Factors affecting the analysis of company costs and profits 18
2.2.3.1 Subjective factors 18
2.2.3.2 Objective factors 19
2.3 Evaluate the relationship between cost and profit in the printing business of
An Khanh company through econometric model 19
2.3.1 Building an estimation model 19
2.3.1.1 AVC and SMC functions 19
2.3.1.2 Marginal revenue function 20
2.3.2 Collecting and processing model running data 20
2.3.3 Estimated results 20
2.3.4 Conclusions drawn from model 23
Chapter 3. SOME SOLUTIONS TO MAXIMIZE COMPANY PROFITS
AN KHANH 24 ADVERTISING AND TRADING COMPANY LIMITED
3.1 Some conclusions and research findings 24
3.1.1 The company's success in implementing cost and profit 24
3.1.2 Company limitations in implementing costs and profits 25
3.2 Business orientation and goals 27
3.3 Some solutions to maximize profits 28
3.3.1 Solutions to reduce production and business costs to maximize profits 28
3.3.2 Increase revenue to maximize profits 30
3.3.3 Choosing optimal output 31
3.3.4 Building a reasonable price list 31
3.3.5 Market development and expansion 32
3.3.6 Some recommendations 33
LIST OF DRAWINGS
Figure 1.1 Graph of total cost, total fixed cost, total variable cost lines .. 6
Figure 1.2 Average cost curves, average fixed cost, variable cost
average 7
Figure 1.3 Marginal cost curve graph 8
Figure 1.4 Relationship between cost curves 8
Figure 1.5 Figure showing profit maximization conditions 12
Table 2.1 Company organizational chart ..........................................................................- 1 -
LIST OF TABLES
Table 2.2: Revenue and profit performance of printing products company. ..- 2 - Table 2.3 Structure of variable costs and fixed costs of printing products. ......................- 3 - Table 2.4. Situation of production and business operating costs in three years .............- 4 - Table 2.5 Summary of each type of variable costs and fixed costs. .............................- 5 -
Table 2.6 Chart of changes in each type of variable cost over three years .....................- 6 - Table 2.7 Chart of changes in fixed costs over the years 2007 to 2009 ...................- 6 - Table 2.8: Profit margin H of the company in the period 2007-2009 18
Table 2.9 Average variable cost data table ................................................- 7 -
Table 2.10 Data table on the company's printing product demand function ..............................- 8 -
Table 2.11Results of average variable cost function analysis 21
Table 2.12 results of demand function analysis 22
LIST OF ABBREVIATIONS
AFC: Average Fixed Cost
ATC: Average Total Cost
AVC: Average Variable Cost
Social insurance: Social insurance
BHYT: Health insurance
TC: Total cost
TFC: Total Fixed Cost
TVC: Total Variable Cost
MC: Marginal cost
TR: Total Revenue
MR: Marginal Revenue
Chapter 1. OVERVIEW OF THE STUDY TOPIC.
1.1 The urgency of the research topic.
In the world, scientists have researched and discovered that the relationship between costs and profits has had a significant impact on the economy. Thinking in implementing costs to help businesses minimize costs and maximize profits is essential for every business, organization and individual in society. It not only evaluates the effective management of businesses and organizations but also helps businesses make quick decisions based on effective implementation of costs and profits. Moreover, implementing costs and profits is not only a concern of the subjects in the business but also a concern of the subject units outside the business. Implementing costs and profits well will help businesses implement financial costs well in the business, capital circulation in the business, ensuring interested parties about the business's ability to pay. Ensuring the reputation of the business with customers and related organizations and businesses.
An Khanh Advertising and Trading Company Limited has implemented cost and profit management during the period from 2006 to 2009 and will continue to do so in the future to achieve its goals in production and business. Although with the efforts of all employees and the company's management, we always try to achieve optimal efficiency. But the company still has many difficulties in reducing costs to reduce product prices and increase profits for the company. Prices of goods, raw materials, and input fuels for production and business are increasing, along with the increasing number of competitors. The implementation of variable costs of the company tends to increase faster than fixed costs. Moreover, the company wants to compete with other companies with lower prices than competitors. The company's revenue and profit increased insignificantly compared to the costs that the business spent, especially in 2009 compared to 2008. Therefore, the problem for businesses today is to study the relationship between profits and costs of printed products, and find solutions to maximize profits.