Year: 2024
Type: article
Abstract: Profit plays a significant role in company operations. It reflects operational efficiency and market competitiveness of a company. Companies not only rely on profit for their survival but also use it as an important parameter for decision-making. Moreover, Profitable companies are better positioned to fulfill social responsibilities. Therefore, companies consider profit to be one of the most important parameters. Another parameter that significantly impacts companies is cost. Costs play a unique role in the formulation of a company's business strategy, financial health analysis, and other areas, closely related to each enterprise's competitive advantage. Therefore, reducing costs and increasing profits have become the goals pursued by every profit-oriented enterprise. Finding the relationship or pattern between these two important pieces of data becomes even more significant. By establishing a model, the company can use the known patterns and existing cost data to estimate profits, thereby creating plans that better align with its future development. This paper aims to explore the relationship between cost and profit by categorizing total cost into three classes: R&D costs, marketing costs, and administrative costs. A sample size of 1,000 is used in this research to build ordinary least squares and random forest models to analyze the relationships between these attributes.
Author: Bingkun Zhang
Institution: Hong Kong Baptist University
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: hybrid
OpenAlex ID: W4405793126