In Colombia, particularly of our organizations, they are required to be more efficient in relation to competition and constant changes at the business level and in general within the framework of globalization; 21st century management must add value to its processes and what better for this than to use tools, such as the cost - volume - utility model that allow senior management to guide organizations towards different objectives and different deadlines (increase in demand, acceleration in the rotation of the portfolio to be recovered, the return on investment and others for the benefit of internal stakeholders), so that the organizational unit, whatever it may be, serves as a generating instrument and wealth distributor, providing the respective service that corresponds to the society that shelters it.
This justifies the importance of the "cost-volume-profit" model in the corporate financial planning process that separates management from the generalized paradigm, but not entirely true, that companies with higher profit volumes are synonymous with efficiency when generating greater wealth, when reality indicates that the added value is represented in profitability above the average cost of capital generated by investments in the company. The aforementioned model takes on special relevance since it is used as a tool that allows the simulation of scenarios that serve as support to choose a certain course of action.
For this, it is necessary to be clear about the variation in costs in the face of changes in the level of activity, the determination of the production and sales mix, clear policies on investment plans and efficiency in the use of variable resources in order to define the relationships between costs, volumes and sales prices; The organization should not only be interested in knowing the income necessary to achieve balance, but also in determining the income that is required to cover, in addition to costs, profits, cost of capital, return on investments, and other items.
However, in order to have more reliable information to use the cost-volume-utility model in the design of strategies and decision-making, the way of using it must be modified so that it provides useful information to its different users; Thus, the model is enriched by taking advantage of activity-based costing, relating the costs that are based on units produced and those that are not. It is worth adding that the success in the implementation of the studied model, and in general any that is related to the information systems in an organization, is influenced by the creativity and intelligence with which these variables are managed, leaving it to the discretion of the management decision-making based on the results and indicators of the administrative information system.
The economic value added is measured by the difference between the results of the operation and the cost of the resources used in the operation.
