A Comparative Study on the Application of Cost Volume Profit Analysis in Management Decisions of Manufacturing Organizations
A Comparative Study on the Application of Cost Volume Profit Analysis in Management Decisions of Manufacturing Organizations
Quick Navigation for Final Year Undergraduates, Masters (Thesis), and Ph.D. Dissertation Students Who Need Our Services on Their Research Works
| Find More Project Topics | FIND HERE |
| Hire Us for Thesis Works | HIRE NOW |
| Hire Us for Project Works | HIRE NOW |
| Hire Us for Seminar Works | HIRE NOW |
| Hire Us for Assignments | HIRE NOW |
| Hire Us for Proposals | HIRE NOW |
| Contact Us | HERE NOW |
Abstract on A Comparative Study on the Application of Cost Volume Profit Analysis in Management Decisions of Manufacturing Organizations
Cost–Volume–Profit (C–V–P) analysis is the analysis of the cost evolution models, which points out the relations between cost, production volume and profit. Cost-Volume-Profit (CVP) analysis from the accounting profession perception is a managerial accounting technique that is concerned with the effect of sales volume and product costs on operating profit of a business. According to Hilton, (2000:312), cost-volume-profit (CVP) analysis focuses on the number of units sold as the sole cost and revenue driver. In other words, sales revenue is assumed to be linear in terms of quantity of the units sold. Conceptually, conventional linear cost-volume-profit (CVP) analysis is a simplified, short term planning technique that evolved as a practical version of the theoretical model of a firm (Marshall, A. 1890). From an accounting perspective it is compatible with the direct, or variable costing method of inventory valuation. To use the CVP model, a company must separate total costs into fixed and variable categories. The only activities that are allowed to affect variable costs in traditional cost-volume-profit analysis are production output and sales. Accordingly, fixed costs are those costs that do not vary with changes in the activity level. Hence, fixed costs are not constant. By definition, fixed simply means that these costs are not driven by short run changes in production or sales volume. Although explicit recognition of non-production volume related cost drivers is a key concept in activity based costing, the idea is ignored in the conventional linear CVP model. It is important to recognize that the concept of fixed and variable costs is a short run concept. All costs tend to vary in the long run as the company adds to its’ capacity to produce and distribute products and services.
Disclaimer
This research material is intended for academic use only and should be used as a guide in constructing your research project and seminar presentation. You should never duplicate the content word for word (verbatim), as SCHOOLTHESIS.COM will not be held liable for anyone who does.
The purpose of publishing this material is to alleviate the stress of hopping from one school library to the next in search of research materials. This service is lawful because all educational institutions allow students to read past projects, papers, books, and articles while working on their own.
SCHOOL THESIS is merely giving this information as a research reference. Use the document as a reference or structure for your own research paper. This paper’s content should be able to assist you in coming up with new ideas and thoughts for your own study
A Comparative Study on the Application of Cost Volume Profit Analysis in Management Decisions of Manufacturing Organizations research paper, should only be used as a guide.