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Assessment of the Most Significant Impacts of Environment on the Changes in Company Cost Structure

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  • Božidar Leković
  • Andrea Ivanišević
  • Branislav Marić
  • Jelena Demko Rihter

Abstract

Companies are operating as integral parts of their environment, and thus, they depend on it, as well as on the changes that occur in the environment. They are usually unable to control environmental impacts, so they need to develop a system which can partially reduce these impacts; they need to adjust and synchronize with changes. Due to the development of this mechanism, companies could adapt their business activities to the most of the impacts from the environment, providing thereby the highest profit at the end of the fiscal year. The purpose of this paper is to point out the principles of designing a model that could enable the enterprise to assess the most important impacts from the environment, quantifying their influence on its cost structure. Decisions about necessary changes in system operations should be based on the results of calculations in order to achieve the results as defined in the dynamic plan, or control them within satisfying limits.

Suggested Citation

  • Božidar Leković & Andrea Ivanišević & Branislav Marić & Jelena Demko Rihter, 2013. "Assessment of the Most Significant Impacts of Environment on the Changes in Company Cost Structure," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 26(1), pages 225-242, January.
    • Handle: RePEc:taf:reroxx:v:26:y:2013:i:1:p:225-242
    DOI: 10.1080/1331677X.2013.11517599
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