ACCOUNTING OPERATING INCOME CAUSES OF VARIATION: THE IBERIA CASE

Abstract

In this article it is intended to develop a model which would help understanding the causes of variation of operational earnings as a result of using external information. To do so, we rely on the study of the effects that lead to a variation of the activity, the total contribution margin, and of other incomes that are independent of activity and fixed costs. Given the close relation between activity and total contribution margin, was analyzed the effect on the operational results that generates variations in each of its components - variable costs per unit and margin rate. With the proposed model, algebraic and discrete type, it is possible to study the operational accounting result since its measurement and accountancy collection are normally done in annual periods, too long for the application of instrumental techniques such as differential equations or partial derivatives, in a way that robustness of the mathematical model was renounced the in favor of its simplicity.