The Effectiveness of Cost – Volume – Profit Analysis in Manufacturing Industries

Description

Download The Effectiveness of Cost – Volume – Profit Analysis in Manufacturing Industries. Business Administration students who are writing their projects can get this material to aid their research work.

Abstract

The utility of Cost-Volume-Profit analysis lies in the fact that it presents a microscopic picture of the profit structure of a business enterprise. It does not only highlight the area of economic strength and weakness in the firm but also sharpens the focus on certain leverage which can be operated upon to enhance its profitability.

The objective of this study is to find out the effectiveness and also factors affecting the implementation of this Cost-Volume-Profit analysis in the manufacturing Industry. The researcher in the findings observed that most Industries aim at profit maximization and paid little or no attention to the effect of Cost-Volume-Profit analysis.

It was also discovered that the more the cost acquired for a particular production without corresponding increase in the volume of production reduces profit. Therefore, manufacturing Industries should ensure that when cost increases the raw material should equally increase to manufacture more products to cover the variable and fixed cost.

Introduction

Cost – Volume – Profit analysis is a useful tool in understanding the inherent relationship between Cost, Volume of operation and profit. Don and Jack [1991:223] described Cost – Volume – Profit analysis as “a method of estimating how changes in unit variable cost, Unit Sales Price, Total Fixed Cost per Period, Sales Volume and Sales mix affect profit”. 

Jhigan and Stephen [2007: 653] defined Cost – Volume – Profit analysis as “a vital importance in determining the practical application of cost function, i.e. function of three factors; Sales Volume, Cost and Profit”. It aims at classifying the dynamic relationship existing between total cost and sale volume of a company.

Hence it is also known as “Break-Even Analysis”. It helps to know the operating condition that exists when a company ‘breaks-even’, that is when sales reach a point equal to all expenses incurred in attaining that level of sales. Cost – Volume – Profit analysis evaluates the relationship among these interacting variables.

The analysis proceeds on the basis of cost in an organization and the profit. In other words, the inter-play of cost and quantity enables the organization observes its profit motive. This inter-play follows a regular pattern or a steady state [i.e. at equilibrium]. 

How to Download this Project Material

First, note that we are one of the best and most reliable online platforms because we don’t retain any of your personal information or data as regards making payments online.

PRICE: ₦3,500 ₦3,000  (Three Thousand Naira Only)

Make a bank deposit or mobile transfer of ₦2,000 only to the account given below;

---

Bank Name: UBA Account Number: 1022564031 Account Name: TMLT PRO SERVICES

---

After making the payment, CLICK HERE to send the following on WhatsApp;

• Depositor’s Name or Screenshot of Payment
• Name of the Past Question
• Active Email Address

---

or Call Us On +2348082284439 Once your details have been received and your payment confirmed by us, you will receive the past question in your email or WhatsApp within 5 Minutes.

Guarantee of Getting the Material 

We understand that due to the high rate of fraud, many people are afraid of making purchases online but be rest assured that PastExamQuestions will deliver your material after payment.

Once your details have been received and your payment confirmed by us, you will receive the past question in your email or WhatsApp.

Give us Feedback

Have we been able to satisfy you? How well do you think the material will be helpful after having gone through it? Does the price worth the material?

Let’s hear from you! We recommend that our customers give feedback at the end of every transaction to enable us to serve better. You can do this by clicking the review button on this page.

Where is the review button? >> Just scroll up to where you see reviews