Comparative Analysis Between Cost and Liability Based on the Sensitivity Method

This paper is about the comparison of cost and liability in the tax system. The results show that the liability increases the tax revenue and the costs decrease the tax revenue. The applied methodology is based on the S.M. (Sensitivity Method) where the comparison between the cost and the liability happens through diagrammatic analysis. The mathematical background and the theory of the money cycle clarify the behavior of these variables. The scope of the paper is to confirm the behavior of the theory of the Cycle of Money considering these variables. The objective of this work is to reveal the interaction between these variables.