Cost Structure and Its Role in Maximizing the Profitability of Some Industrial Companies-Iraq
Naji Shayeb Al-Rikabi *
Baghdad College of Economic Sciences University, Iraq.
Sahar Yahiya Sahib
Accounting Department, Administrative Technical College, Baghdad, Iraq.
*Author to whom correspondence should be addressed.
Abstract
This research dealt with the topic of the cost structure and its role in maximizing profitability in industrial companies. The General Company for Construction Industries was chosen as a sample for the research. The research focused on two main variables, namely the cost structure as an independent variable and profitability as a dependent variable and the research used descriptive analysis in analyzing the cost structure and providing information that was used in determining the volume of production required to maximize profit.
The research aims to measure the role of the cost structure that is compatible to the nature of the company's activity and its circumstances in maximizing profit, by showing the extent of its impact on the decisions that will be taken by management by analyzing the components of the current costs and studying the behavior of costs and thus extracting the proportion of fixed and variable costs in the structure The current costs and its role in making decisions to increase production to reduce the unit cost of production and determine the volume of production that maximizes profit to the maximum extent possible and to explain the factors affecting the method of measuring costs used within the economic unit and the way to evaluate inventory, and thus will be completed Cost control and planning for better production and profitability target.
Keywords: Optimal cost structure, maximizing profitability