Break-even Analysis under Randomness with Heavy-tailed Distribution

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F17%3A10236540" target="_blank" >RIV/61989100:27510/17:10236540 - isvavai.cz</a>

Výsledek na webu

<a href="http://dx.doi.org/10.7327/cerei.2017.09.01" target="_blank" >http://dx.doi.org/10.7327/cerei.2017.09.01</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.7327/cerei.2017.09.01" target="_blank" >10.7327/cerei.2017.09.01</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Break-even Analysis under Randomness with Heavy-tailed Distribution

Popis výsledku v původním jazyce

Break-even analysis is a tool suitable for making short-term decisions about the quantity of production. Traditional break-even analysis is based on certain assumptions among which the most important are the following limitations: variable costs are linearly dependent on sales volume, price of the product is stable, fixed costs do not change. Moreover, we assume that all the input variables (variable costs per unit, fixed costs and price of the product) are known with certainty. However, these variables may be random and thus not known in advance. For instance, a firm can be price-taker – the price of the product is a random variable determined by market, variable costs per unit depends on the price of raw materials, which again cannot be known in advance with certainty. In our paper, we discuss the break-even analysis introducing randomness. We focus on two input variables – the price of the product, which influences the revenues, and the variable costs per unit, which influences the costs. Both random inputs are supposed to follow joint normal distribu-tion and NIG distributions joined together by copula function.

Název v anglickém jazyce

Break-even Analysis under Randomness with Heavy-tailed Distribution

Popis výsledku anglicky

Break-even analysis is a tool suitable for making short-term decisions about the quantity of production. Traditional break-even analysis is based on certain assumptions among which the most important are the following limitations: variable costs are linearly dependent on sales volume, price of the product is stable, fixed costs do not change. Moreover, we assume that all the input variables (variable costs per unit, fixed costs and price of the product) are known with certainty. However, these variables may be random and thus not known in advance. For instance, a firm can be price-taker – the price of the product is a random variable determined by market, variable costs per unit depends on the price of raw materials, which again cannot be known in advance with certainty. In our paper, we discuss the break-even analysis introducing randomness. We focus on two input variables – the price of the product, which influences the revenues, and the variable costs per unit, which influences the costs. Both random inputs are supposed to follow joint normal distribu-tion and NIG distributions joined together by copula function.

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

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OECD FORD obor

50204 - Business and management

Projekt

<a href="/cs/project/GA13-13142S" target="_blank" >GA13-13142S: Ověření vhodnosti jednotlivých Lévyho modelů pro vybrané úlohy finanční modelování</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Ekonomická revue - Central European Review of Economics Issues

ISSN

1212-3951

e-ISSN

—

Svazek periodika

20

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

8

Strana od-do

91-98

Kód UT WoS článku

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EID výsledku v databázi Scopus

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