The Implicit Cost Structure Analysis Mathematical Model

The concepts of hidden profits, survival costs and development costs are defined to model the structure of hidden costs. Defining the implicit costs as the conversion costs of the hidden profits, we developed the model for structure analysis of implicit costs on the basis of costs decompositions and profit-cost conversion relations. Applying the model to the cost data of a coal enterprise, we interpret the significance of the relevant variable parameters and discuss the estimation methods.Defining the covariance of sample data as an invariant feature, an algorithm for simulation is provided to study the robustness of the model. The application of the model onto a large set of samples yields good agreement showing the stability of the method.The investigation in this work offers the convenient tool to analyze the implicit costs of enterprises and relevant factors from the macroscopic perspective.