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Profit model

Index Profit model

The profit model is the linear, deterministic algebraic model used implicitly by most cost accountants. [1]

9 relations: Algebra, Budget, Cost accounting, Financial modeling, Income statement, Management accounting, Newton's method, Richard Mattessich, Sensitivity analysis.

Algebra

Algebra (from Arabic "al-jabr", literally meaning "reunion of broken parts") is one of the broad parts of mathematics, together with number theory, geometry and analysis.

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Budget

A budget is a financial plan for a defined period of time, usually a year.It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.

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Cost accounting

Cost accounting is the process of recording, classifying, analyzing, summarizing, and allocating costs associated with a process, and then developing various courses of action to control the costs.

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Financial modeling

Financial modeling is the task of building an abstract representation (a model) of a real world financial situation.

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Income statement

An income statement or profit and loss accountProfessional English in Use - Finance, Cambridge University Press, p. 10 (also referred to as a profit and loss statement (P&L), statement of profit or loss, revenue statement, statement of financial performance, earnings statement, operating statement, or statement of operations) is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period.

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Management accounting

In management accounting or managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions.

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Newton's method

In numerical analysis, Newton's method (also known as the Newton–Raphson method), named after Isaac Newton and Joseph Raphson, is a method for finding successively better approximations to the roots (or zeroes) of a real-valued function.

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Richard Mattessich

Richard Victor Alvarus Mattessich (born August 9, 1922 CV at sauder.ubc.ca. Accessed 07.02.2015) is an Austrian/Canadian business economist, and Emeritus Professor of Accounting at the University of British Columbia, known for introducing the concept of electronic spreadsheets into the field of business accounting in 1961, as well as pioneering analytical and philosophical methods in accounting.

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Sensitivity analysis

Sensitivity analysis is the study of how the uncertainty in the output of a mathematical model or system (numerical or otherwise) can be apportioned to different sources of uncertainty in its inputs.

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References

[1] https://en.wikipedia.org/wiki/Profit_model

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