Costs and expenses, their relationship with financial results in a transport company

Abstract

The main objective of this study is to determine the level of relationship between costs and service expenses and the financial results of the freight transport company Valentín & Valentino S.A.C. Under the quantitative approach, the study was carried out at a descriptive-correlational level, with a non-experimental cross-section. For the study and analysis of the fixed units of the company, the technique of collecting data from documentary review of sales records, purchases, fuel consumption report and company balance sheets was used; for a total of 36 accounting records from the years 2014 to 2016, which formed the study sample determined under intentional sampling. The results show that there is a significant high average relationship between costs and gross profit (rs =, 666; p =, 000) and a significant average relationship with operating profit (rs =, 482; p =, 003); however, there does not seem to be a significant relationship with financial profitability (rs =, 257; p =, 130). Regarding service expenses, there is a high significance with gross profit (rs =, 908; p =, 000) and average with operating profit (rs =, 529; p =, 001), but not with financial profitability (rs =, 182; p =, 289). In conclusion, we can affirm that there is an excess in the  expenses of the fixed units of the company. Likewise, costs and expenses are directly related to financial results in terms of gross and operating profit.